You mean you never pay interest by paying off the debt before the next billing cycle, right? Or is it fine to get zero interest for whatever amount of months on certain purchases?
Ah, okay, I always figured the only way to really be responsible with credit was to use credit cards like debit, but if a big purchase came along that I definitely couldn’t pay off within the month, I figured it wouldn’t hurt to have zero interest but wasn’t sure of the impact on my credit.
That is pretty much the right way to do credit. Treat like debit and/or find a way to have 0% interest over a few months time to spread a big cost across multiple months where it becomes affordable.
My concern is the impact on my credit from not paying back in full, even if there’s zero interest for an extended period of time. Like paying an appliance in 3 months with no interest versus the full balance before the next billing cycle. I just assume there’s a downside to having that convenience aside from them hoping I’ll fall behind.
Personally, I pay off before next billing cycle. However, I have been fortunate with my finances. I know friends of mine who carry credit card debt, and they have successfully managed to balance transfer from one card to another using periodic balance transfer deals that let you transfer all your debt from one credit card to another with a 0% interest rate for 12 months or so. They have managed to do this for years.
You mean you never pay interest by paying off the debt before the next billing cycle, right? Or is it fine to get zero interest for whatever amount of months on certain purchases?
We do both… both are fine. As long as you aren’t paying fees or interest, there is no disadvantage to using credit cards.
Ah, okay, I always figured the only way to really be responsible with credit was to use credit cards like debit, but if a big purchase came along that I definitely couldn’t pay off within the month, I figured it wouldn’t hurt to have zero interest but wasn’t sure of the impact on my credit.
That is pretty much the right way to do credit. Treat like debit and/or find a way to have 0% interest over a few months time to spread a big cost across multiple months where it becomes affordable.
My concern is the impact on my credit from not paying back in full, even if there’s zero interest for an extended period of time. Like paying an appliance in 3 months with no interest versus the full balance before the next billing cycle. I just assume there’s a downside to having that convenience aside from them hoping I’ll fall behind.
Personally, I pay off before next billing cycle. However, I have been fortunate with my finances. I know friends of mine who carry credit card debt, and they have successfully managed to balance transfer from one card to another using periodic balance transfer deals that let you transfer all your debt from one credit card to another with a 0% interest rate for 12 months or so. They have managed to do this for years.
So there are definitely a variety of options!