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Can someone explain the zero credit score thing to me?
Main Post:
Why is it supposed to be good to have no credit score, according to Dave? What do you get in return for that?
I’m not even arguing with it. It’s just so out of bounds that I had never encountered it until this sub.
Top Comment:
The goal of a zero credit score is really bad advice. If you’re dedicated enough to get to zero you can easily get to 800+. No reason to have zero if the same discipline gets you 800+.
0% credit cards, do I need to pay it off entirely every month?
Main Post:
I’m a 20 year old looking to get my first credit card, I’ve done plenty of research into the different available options, along with the necessary things I will need to do once acquiring a credit card, such as making sure the balance is paid in full each month. However after coming across 0% credit cards, I’m curious as to whether the monthly payments are still as crucial? Essentially, I am potentially having a £600 cost coming out in the next few months and this would be quite a toll on my financial situation, so was looking into getting a 0% credit card, paying the £600 on that and then paying that off over a period of 3-6 months. Would this affect my credit score negatively, even if it’s still in the ‘no-interest’ time period? One card I have found that I’m interested in offers a 12 month time period, so as long as I had the £600 paid off before then, would there be any negative effects to either my credit score or anything else I’ve forgotten?
Please feel free to offer solutions or advice as I want to make sure I go about this the correct way, but am also wanting to work towards improving my credit score.
Top Comment: 0% CC are good if you pay them off before you get charged interest. Your credit score might be negatively impacted at first as there will be a credit check and you are taking out new credit but in the long run having a CC and paying it off is good for your credit history. With 0% CC you must make the minimum payments each month to keep your 0% interest, if you pay the full amount in the time period before 0% runs out you will not pay any interest. TLDR: you must make the minimum monthly payments to keep 0% interest.
Should I max out my 0% APR credit card with a balance transfer?
Main Post:
I just got a credit card with 0% APR for 18 months and a credit limit of 3k. So I know the rule with credit cards is to keep it under 30% utilization so it doesn't negatively affect your credit score. I currently have a credit card with a balance of 2.3k with 28% APR. My question is, should I only transfer $850 to the new credit card to keep the utilization under 30%? Or can I take full advantage of the 3k credit limit by transferring the whole amount (2.3k)without it negatively affecting my credit score?
Top Comment: The 30% utilization rule is BS, especially when the alternative is paying 28% interest. Transfer all of it to the 0% card. You can worry about your credit score when it's paid off. Because right now, you're on the Titanic and worrying that your clothes will get wet.
New Tesla Y with 0% financing and tax credit a bad idea?
Main Post:
Hello, with the new government in place in a few months, the 7500 tax credit for Tesla and all EVs is set to end. Plus Tesla is now offering a 0% interest on all Model Ys and the down payment is $2999 only. Should I go for it or just buy a used Tesla Y at 7% interest rate. I did the math the difference in used and new is 8000 more after the tax credit is applied because the used one has higher interest and new one does not. What should I do?
I have to give my car to my kid as the kid will be going to college in 6 months.
Top Comment: You're asking a debt-free goal oriented subreddit if financing is a good option?
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Main Post: [deleted by user]
Top Comment: Just closed last week with NFCU. Didn’t do the 0% down but it was a great experience and most competitive rate.
“Free” money glitch with 0% APR card + HYSA account. Where’s the catch?
Main Post:
So I thought about this strategy which sounds pretty fool-proof other than hurting you credit utilization:
- Get 0% APR credit card
- Put all purchases on this card
- Make only minimum payment
- Put the difference between minimum payment and statement balance into a HYSA (say 5%) from your checking account
- Use money from the HYSA to pay off card right before 0% APR expires and pocket the compounded interest
- Repeat with new 0% APR card
Top Comment:
Not really a catch, but what can happen is that people end up not being able to pay off the balance because they spend more than they have or a life crisis happens.
This is pretty normal with churning, but if you consider the level of effort to chase 0% APY cards to make maybe 4-5% on 5000-10000, it really isn't worth it unless you're doing it with a pretty large expense from the get go.
For me, I just had a 10,000 total medical expense that I need to pay, and I decided to churn a large sign up bonus over a 0% card.