0% Credit Cards

[Jacob Edmond]

I'm sure this has been discussed in some fashion almost ad-nauseum on here, but I wanted to see what people think about using either new card offers with 0% interest for the usual 15-24 months, or balance transfers with the same type of terms.

I am currently remodelling my home, and I usually have at least 2 or more 0% balance transfer offers for 15+ months on several of my credit cards, and always am getting new offers from my banks or in the mail for new ones. I know this isn't something I want to repeat often, but I can't seem to find a good reason not to finance my remodel this way. It's cheaper than any loan I can get, and it allows me to keep as much cash free for the time being as well. I don't plan to use more than 30% of my available limits, as I'm probably only going to spend about $15k on this project.

My credit is currently in the mid 700s , and I track it weekly, so I know I will take a slight hit while the balances are on the cards, but I will pay them off before I need any other type of financing for another house.

Just wondering if anyone else would do this, even though tk a lot of people credit cards are almost taboo these days.

[Frank Jiang]

I always get super nervous when I hear about someone trying to finangle their way into a cheap loan via balance transfers, temporary 0% interest offers, etc.

The bottom line is this: credit card companies are out to make money.  They are sophisticated and have very large teams of people with very fancy degrees who study credit card spending behavior and patterns.  They would not have this sort of program unless they believed that it increased their overall bottom line.

Sure, some people can responsibly maintain balance transfers and always pay their debt before interest starts to accrue.  But life doesn't always run smoothly and it only takes one slip up to turn your 0% "loan" into 35% revolving debt.

If you honestly believe you have the discipline/intelligence necessary to maintain the balancing act, then more power to you, but why take this risk when alternative financing sources are so cheap these days?  For a 15k loan that you plan to pay off within 15 months, I can't imagine that you'd pay more than a couple hundred dollars in total interest.