Credit question...if you get a credit card that's 0% APR for 12 months..

[Syringer]

And you just let it sit there for 12 months letting the balance carry over each month, does that hurt your credit score by a significant margin? If so, how does it compare to one that's not so interest friendly?

Also, aside from credit score, what do cc companies use to determine your credit limit?

 

[MikeyIs4Dcats]

no.

income, debt to available credit ratio

 

[CTrain]

Originally posted by: Syringer
And you just let it sit there for 12 months letting the balance carry over each month, does that hurt your credit score by a significant margin? If so, how does it compare to one that's not so interest friendly?

Also, aside from credit score, what do cc companies use to determine your credit limit?

Of course.
Lets say the CC has a 10K limit and you have a balance of ~$9500 on it for the 12 months, it would definately hurt your credit.
I'm in the middle of doing it and it has hurt my credit score.

 

[MikeyIs4Dcats]

Originally posted by: CTrain

Originally posted by: Syringer
And you just let it sit there for 12 months letting the balance carry over each month, does that hurt your credit score by a significant margin? If so, how does it compare to one that's not so interest friendly?

Also, aside from credit score, what do cc companies use to determine your credit limit?

Of course.
Lets say the CC has a 10K limit and you have a balance of ~$9500 on it for the 12 months, it would definately hurt your credit.
I'm in the middle of doing it and it has hurt my credit score.

not necessarily. depends on his debt to AC ratio. it may not affect his credit score very much.

 

[Dunbar]

CTrain have answered your question. I'll just add, do not put any other charges on that card during the 12 months. Since any payments made go towards the principal (balance transfer) before new charges (which are charged at a high interest rate.) Also, make sure you read the fine print to determine the card doesn't require a minimum number of charges to keep the low rate.

Paying 0% interest is better than paying 10-20% interest, but you need a plan to get rid of that debt.

 

[alm4rr]

so you mean missing the minimum payment each month?

 

[dionx]

Originally posted by: MikeyIs4Dcats

Originally posted by: CTrain

Originally posted by: Syringer
And you just let it sit there for 12 months letting the balance carry over each month, does that hurt your credit score by a significant margin? If so, how does it compare to one that's not so interest friendly?

Also, aside from credit score, what do cc companies use to determine your credit limit?

Of course.
Lets say the CC has a 10K limit and you have a balance of ~$9500 on it for the 12 months, it would definately hurt your credit.
I'm in the middle of doing it and it has hurt my credit score.

not necessarily. depends on his debt to AC ratio. it may not affect his credit score very much.

but there are two ratios involved. debt to available credit per card AND overall debt to overall available credit. i'm not sure which one has a bigger factor, but most likely the latter.

 

[DaWhim]

you can't just let it sit there for 12 months, because there is minimum payment every months you have to pay.

it does hurt your credit score, it is depends on how much you utilize your available credits. if you have 20k credits and carrying 1k debts, it shouldn't hurt much.

credit score will determine how much they give you when you first apply for a cc. my intial credit limit for every new car keeps getting higher as my credit score goes up.

 

[dionx]

Originally posted by: Syringer
And you just let it sit there for 12 months letting the balance carry over each month, does that hurt your credit score by a significant margin? If so, how does it compare to one that's not so interest friendly?

Also, aside from credit score, what do cc companies use to determine your credit limit?

i think most applications ask you what your household income is. they can infer the true value by looking at your credit history or they can always verify with your employer.