Thread: 0% APR

It varies depending on the type of credit (loan or CC). For most car companies you are looking at probably 720 or so plus for the great deals they advertise on TV. CCs might be a bit lower, but probably not below mid-600s.

Originally Posted by WorstPE

What started this, a guy I work with was looking up cars and just asked "What would your credit have to look like to get a 0% apr for sixty months?"

That has much less to do with your credit and much more to do with what you agree to pay for the car.

The only way you are going to get 0% APR on a car loan is if you get the loan through the dealer, and don't pay below a minimum threshold price at which they can still profit a certain amount while giving you 0% APR. If you turn down their stupid 0% APR offer, pay cash, or provide your own private financing, you will be able to negotiate a much lower price. Nothing is free no matter how good your credit is. Try getting a rock bottom price and THEN tacking their 0% APR deal on to it too... not gonna happen.

I am in no way saying that a 0% APR deal cannot be advantageous under certain conditions... just that the credit isn't really free... it comes at a cost and that cost is reflected in a higher sale price.

And for CC's... it's always introductory with a massive increase afterwards. CC's are pointless anyway, the only things in this life worth financing are very high dollar items like cars and houses and even those I try not to.

And yes, at the end of the day your credit score still does matter and 720 is a great one to shoot for. But it's still not free.

A credit score, a wise man once said, is nothing but an "I love debt score".

Originally Posted by Veovis

Originally Posted by WorstPE

What started this, a guy I work with was looking up cars and just asked "What would your credit have to look like to get a 0% apr for sixty months?"

That has much less to do with your credit and much more to do with what you agree to pay for the car.

The only way you are going to get 0% APR on a car loan is if you get the loan through the dealer, and don't pay below a minimum threshold price at which they can still profit a certain amount while giving you 0% APR. If you turn down their stupid 0% APR offer, pay cash, or provide your own private financing, you will be able to negotiate a much lower price. Nothing is free no matter how good your credit is. Try getting a rock bottom price and THEN tacking their 0% APR deal on to it too... not gonna happen.

I am in no way saying that a 0% APR deal cannot be advantageous under certain conditions... just that the credit isn't really free... it comes at a cost and that cost is reflected in a higher sale price.

And for CC's... it's always introductory with a massive increase afterwards. CC's are pointless anyway, the only things in this life worth financing are very high dollar items like cars and houses and even those I try not to.

And yes, at the end of the day your credit score still does matter and 720 is a great one to shoot for. But it's still not free.

don't have a credit card and see how many people are going to finance that car you want to buy, or that house.

Credits card can be useful as long as you are responsible with them, i use mine all the time but i also track my spending and pay it off when it is due. It is much easier then carrying a bunch of money on me and allows me to buy books for class, supplies etc online

Originally Posted by Red_Lizard2

don't have a credit card and see how many people are going to finance that car you want to buy, or that house.

Credits card can be useful as long as you are responsible with them, i use mine all the time but i also track my spending and pay it off when it is due. It is much easier then carrying a bunch of money on me and allows me to buy books for class, supplies etc online

I have 6 credit cards with no balance, that is the optimal number according to many sources to have a good credit score. But I don't ever use them really... if I can't afford, today, something that's under $5000 I shouldn't be buying it today anyway.

And yes, paying with cash can be inconvenient... for that I use my DEBIT CARD. :9 Paying credit card bills is just as inconvenient as carrying cash.

Originally Posted by Veovis

Originally Posted by Red_Lizard2

don't have a credit card and see how many people are going to finance that car you want to buy, or that house.

Credits card can be useful as long as you are responsible with them, i use mine all the time but i also track my spending and pay it off when it is due. It is much easier then carrying a bunch of money on me and allows me to buy books for class, supplies etc online

I have 6 credit cards with no balance, that is the optimal number according to many sources to have a good credit score. But I don't ever use them really... if I can't afford, today, something that's under $5000 I shouldn't be buying it today anyway.

And yes, paying with cash can be inconvenient... for that I use my DEBIT CARD. :9 Paying credit card bills is just as inconvenient as carrying cash.

not for me, i just pay the bills online, i have to actually go to the bank to get money out (and i'm too lazy to get there by 5pm).

I rarely use my debit card because from what i've heard if someone steals your CC numbers your more protected then if they get your DC number.

Sometimes though you don't have the money but get it at a later date. I.E. i sold my books and needed to buy new ones, but i wouldn't get the money til after my classes start so i could use the CC to buy em and when the cash comes in pay it off.

I could never have 6 cards so bravo to that

How do you manage that? I have a hard enough time finding two card...in my wallet...

Originally Posted by Veovis

Originally Posted by Red_Lizard2

don't have a credit card and see how many people are going to finance that car you want to buy, or that house.

Credits card can be useful as long as you are responsible with them, i use mine all the time but i also track my spending and pay it off when it is due. It is much easier then carrying a bunch of money on me and allows me to buy books for class, supplies etc online

I have 6 credit cards with no balance, that is the optimal number according to many sources to have a good credit score. But I don't ever use them really... if I can't afford, today, something that's under $5000 I shouldn't be buying it today anyway.

And yes, paying with cash can be inconvenient... for that I use my DEBIT CARD. :9 Paying credit card bills is just as inconvenient as carrying cash.

Actually it's 3 active tradelines. Typically, the tradelines are a mortgage, car, and 1 CC. The problem with getting multiple cards is that they also look at your potential debt. If your making $35K a year and have 6 cards with $10K open to buy, your seen as a risk since you could incur $60K in debt literally overnight.

The really screwed up thing is if you pay off a card and close it... it's a negative hit to your credit score.

Originally Posted by Red_Lizard2

I could never have 6 cards so bravo to that

How do you manage that? I have a hard enough time finding two card...in my wallet...

I might actually only have 5 now counting my debit and my corporate. I think I cancelled the Southwest because it had an annual fee... I only signed up for it to get the free miles, and then when I tried to cancel they said they'd give me MORE miles if I said I'd keep it for one more month. So I said sure and then canceled it after that month.

My favorite is my Sony VISA. For several reasons. I got it for the $100 discount on my PS3 (add this to the $100 discount Wal-Mart was offering on all Blu-Ray players at the time and I got a sweet deal on that console). I held onto it for the next few months and never used it, and then they sent me something saying that if I spent $100 in the next month they'd credit me $25. So... I spent $100, paid it off, and got a free $25 from nowhere. Can't argue with that.

But here is the most valuable thing about my Sony VISA card that you won't get from a debit card. Collision damage waiver for car rentals. When you rent a car, if you get in an accident, you are covered by your own insurance for everything you would be covered for in your own car... with one important exception. If the rental car needs to spend some time in the shop, you will be charged a daily rate for the rental company's "losses" from not being able to rent the car out (since it's out of service). Depending on the daily rate and how long the car is out of service, the total you owe can be substantial (i.e. several thousand bucks). To repeat: your insurance will not cover this. The rental company will try to sell you some form of insurance of their own to cover this, but you'll be paying anywhere from an extra $10-$50 per day just for that nonsense. So here is the true value of a credit card. Many platinum cards have a benefit (which my Sony VISA has) called a CDW (Collision Damage Waiver). The only terms are that I use my card for all rental related purchases, and that I decline the rental company's CDW (easy enough, I always decline it anyway!). If there is a collision, any extra fees charged to me will be covered. It's a slim chance, depending on how often you travel and where you are driving. But after 4 years in a row of driving rental cars in Puerto Rico (a true driving adventure), I had to make some calls and find out what I was really risking by denying the rental agency's CDW.