Tag Archives: Credit cards

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0% APR Credit Card Offers

0% APR (annual percentage rate) Credit Cards are a great thing to have in your wallet. If you a looking to buy that big 72″ flat screen TV, or just to get you through the next pay check, the 0% APR  credit cards are there for you. Today we will discuss the 0% APR credit cards and if it should be the right option for you.

What you should keep in mind

As a borrower

When you borrow money from the bank, or use your credit cards you may be charged interest. The interest charged to you is going to be called the APR. ‎In the terms and conditions of every credit card it displays the rate that you will be charged. Even though you applied for a credit card that had a 0% interest, there is only a certain amount of time that this intro period lasts. Once this period is over be sure to check what the charges will be.

For example, if your interest was an APR of 10% and you took out a $1000 loan. Your‎ interest due will be $100  (this will get a little more complicated when we discuss APY and compounded daily) . The APR as a borrower is the amount above your loan that you will be paying.

Every time you purchase something on your credit card it is a small loan from the bank. The term of the loan is for 30 days. 0% credit cards allow you to keep the term for a longer period.

Additionally

If you are a person who does not budget well, or you find yourself being a compulsive shopper it may be smart to stay away from the inciting 0% credit cards. These credit cards make the sky the limit. People buy what they don’t need, or what they can’t afford with the mindset of “I’ll pay for it later”, “I’ll figure it out when the bill comes”. But when the bills comes for $20,000 then you start to get nervous. Be smart, know if you are able to control yourself with a 0% credit card.

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If it is a 0% interest why is there a minimum due?

Even though you are getting a 0% term from the bank, there still is a minimum payment that you are obligated to pay the bank. If you miss these payments you will ruin your credit. The 0% is only on the balance after the minimum due.

Does it make a difference if I pay or not?

Yes, your Credit Utilization (read more about this on our informative post on credit scores). By not paying off your credit car bill you will be carrying a balance on your credit cards. When you have a balance on your cards, your credit portfolio has a revolving utilization (I made up that term).

Credit Utilization is how much of your credit line you are using. If you have one card with a $1000 credit line, and you spent $500, you have used 50% of your credit. The lower percentage of credit you are using, the better off you are. The total credit is calculated by all your cards credit line vs all purchases. If you have 5 cards with a credit line of $1000, and made the same $500 purchase, your CU (credit utilization) would drop to only 10%. Never go above 30%, and a credit utilization of under 9% are the best.

Why?

When someone is using a large portion of their credit, they are “dependent” on their credit. Banks don’t like that, especially if you are applying for a new card. It makes you look like a compulsive shopper, and a credit risk.

Having a 0% credit card can do wonders! However one must weigh the risks involved before applying. A 0% APR card is the easiest way to accumulate debt, and run a risk of bankruptcy.

Why are we scaring you away from applying?

Although we do make an affiliate commission from many of the links on our website, we try to offer honest information. If we do not wish to deceive our loyal readership. You trust us with your credit cards needs and we will provide for you the truth that you won’t hear from greedy bloggers.

Don’t forget to follow us on Twitter to be entered into our $50 Giveaway!

In Summary

Weigh the benefits vs risks before applying for a 0% APR Credit Card Offer.

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0%

0% APR on Credit Cards From Purchase To Balance Transfers

If you are carrying a balance a 0% credit card is a must. Although “reward cards” (like SPG, Sapphire or United) generally don’t offer 0% APR, the interest that you will save is worth far more then the points earned. The logic of a 0% APR card is flexibility to be able to spend now and pay over time. Not all 0% APR cards are the same. Some have a longer intro period then others. Read the fine print of every card before applying.

Advertising Disclosure: Some of the links in this post are affiliate links. The site owner may be compensated for transactions made via those links.

Getting a 0% APR card can be extremely useful. it can Help pay for an item over time without incurring any interest charges. Only get a 0% APR card if you are a cautious spender. An impulsive spender can rack up $1,000’s of dollars in debt.

Is a 0% APR Card For You?

It is recommended to pay your credit card bill off in full every month. This helps boost your credit score, as you want to make sure that your credit utilization is low. By having a card that you carry a balance on, it can have an adverse affect on your credit.

But there is times of need. If you want to make a big purchase that you don’t have the money for today but you will have the money in 2 months. For example you know that you tax refund is coming in, then it makes sense. Another example is if you want to buy that big TV. You can’t afford it today, but every month you can put $200 towards it. Buying it on a 0% APR card will be the smart choice to maker. This way you are able to get it today, without any additional costs in interest.

And don’t forget to follow us on Twitter to be entered into our $50 Giveaway!

In Summary

A 0% APR card is very good to use for purchases that you don’t have the money for today, but will have soon.

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FTG 5 Credit Card Reward Myths that Need to Die: TRUE OR FALSE

The Frugal Travel guy posted “5 Credit Card Reward Myths that Need to Die”. Although there are some very good points (no pun intended) , we argue on some others.

  • It’s unethical. A credit card issuer makes the offer of their own free will, and people like us simply complete the offer per their instructions. The fact that some of us are smart enough to take advantage does not make it unethical; it makes us geniuses.

We strongly disagree. When one churns a credit card they are exploiting a loop hole. Why would American Express limit the signup offers? Read more here. The banks are offering benefits to attract customers, not to dish out free miles. Another example is the recent Lan claw back on the 20% discount. Abusing the system is unethical.

  • It will ruin your credit. This is a big one for most people, and it really does make sense. Most experts suggest avoiding signing up for any new lines of credit if you plan to buy a house or take out a major loan within the next year to 18 months. However, implying that credit card rewards will, without a doubt, ruin your credit is not only misguided but patently incorrect. Many of us who pursue rewards, including myself, maintain excellent credit scores simply by using common sense when signing up for a new rewards card or cancelling an old one.

Correct! As discussed before applying for multiple credit cards does not have a long term negative affect on your credit score. As a word of caution, requesting to much credit in a short period of time will have a temporary affect on your credit.

  • A credit score over 825 means something. No, pursuing credit cards may not completely ruin your credit, but it does impact it. Since I began pursuing rewards, I’ve seen my credit score drop from 820 to around 760 due to the number of hard inquiries, accounts I’ve closed, and various other factors that come into play. Having a score over 800 may seem desirable, but it isn’t always necessary- especially for this hobby. There is also no awards banquet for having the highest score. No cookies. No ribbons. Most rewards experts simply suggest monitoring your credit score on a site like Credit Karma and making sure it stays above 720 to stay on the safe side.

Correct! A score of 800 will get you approved for the same mortgage that a score of 825. Although as your score continues to dip the mortgage rates will continue to rise, the optimal score of 850 doesn’t have greater benefits then a score of 780.

  • The rewards aren’t worth it. I just have to laugh when people tell me it isn’t worth the effort. Really? Most people who are serious about this hobby would have to disagree. I mean, if you’re paying to go on vacation anyway, why wouldn’t you try to get at least part of your trip for free? You’re either putting in the effort to earn the money for your trip at work, or you’re putting in the effort to swap out a few rewards cards to get your trip for free. I personally prefer the latter.

Correct! The rewards reaped from properly applying for credit cards are tremendous. The Premier Miles & More® World MasterCard® gives you a whopping 50,000 bonus for signing up. As a word of advise, if you are carrying a balance or unable to meet a spending threshold then it is not wise for you to sign up for credit cards. The rewards are not worth it.

  • It’s too complicated. Pursuing credit card rewards does take a certain level of discipline and attention to detail. However, it’s really not that complicated. If you’re worried about how you’ll keep track of everything, you can always manage your credit card rewards with a simple spreadsheet or whip up a quick Google doc. Think of all the complex tasks you perform at your job each day and you’ll realize that credit card rewards are not that difficult to manage.

Correct! Keeping track of due dates can be as simple as setting all the dates for the same month. By keeping your spending in sync with your budget, and making sure to pay the full balance every month your free travel add up quickly.

And don’t forget to follow us on Twitter to be entered into our $50 Giveaway!

In Summary:

We do  not endorse many of the unethical things that are done in the credit card world.

 

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checkapplicationstatus

Application Status: How to Check If You Got Approved

What is the status of my application. Was I approved? These are the 2 questions that everyone wonders after applying for a credit card. Thankfully it is easy to check your application status. Amex, Barclay, Bank of America and Discover have a simple online form.  Chase, Citi and US Bank you need to call in in to an automated system to check on the status.

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Here is the links and numbers of the banks.

American Express:
http://www.americanexpress.com/myappstatus

Bank of America:
https://www.bankofamerica.com/application-status/credit-cards/app-status-form.go?request_locale=en_US

Barclay’s:
http://www.myapplicationstatus.com/barclays

Chase:
800-432-3117

Press: #, 1, 3, 1

Citi:
888-201-4523
They will ask you for an appID. this number is on the confirmation page of your application. Save this number.

Discover:
https://www.discovercard.com/checkstatus/

US Bank:
800-947-1444 option 1
1 for consumer, 2 for business

It doesn’t hurt to check the status of your application, So check up to see what is happening.

Read these other hot topics!

3BM and App-O-Rama, How To Do It Properly

50K American Express Gold Delta SkyMiles® Credit Card And Platinum

In Summary:

Check the application status online or on the phone to see if you were approved.

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