0% Financing

[HEMIJAKE]

I know not the point of this thread but saw at least a couple people say they pay their credit card off everyday. That’s crazy.

Why? There’s no benefit. CC companies only report your statement balance to credit agencies. As long as you pay off full balance on your due date, you’re good. Maybe an exception if a large purchase posts between due date and statement closing, but in those rare cases you can just make an extra payment.

I just pay mine every week on payday. My wife and I both get paid every 2 weeks, on offsetting weeks (which is nice). I pay all the bills for the upcoming week on that Friday, including whatever we spent in credit the week coming up to. We could absolutely wait until the end of the period and pay it all at once while avoiding interest charges, but it takes 30 seconds on the app and makes me feel better that it's paid up ha.

 

[Rock Crawler]

Thanks for all the info. I’ll have to figure out which is going to be best between 0% plus other incentives/discounts and whatever other financing I can get plus incentives/discounts. I got my window sticker last night, so now I’m waiting on shipping. I’ll also have to try and coordinate selling my current truck in time so it won’t show as debt when I get financing for the new one. I have my Jeep to drive in the interim, but it’s kinda sketchy and not super reliable.

 

[User_3336]

Don't need everyday. If you pay in full ( remaining statement balance, excluding new charges ) you won't pay interest, but the new balance will report.

So if you charged $376, bill is $376 but between statement cut and due date you've charged another $212, by paying the 376, you won't pay interest on the 212. But $212 will be reported as the current balance.

Credit cards are voodoo for score. generally you want them all reporting a 0 balance, but you want one to have a very low balance on occasion. The ratio of usage to limits also plays into the score, both overall and per line.

The most important thing is be predictable. doing things out of the ordinary are what knock you. If you constantly do X, you end up in the "X" bucket and your score follows the x bucket rules. If you do Y, it can knock you. Even if Y is suddenly pay off a balance. its not normal for you.

Whole system is BS.

I didn't buy a truck to improve my credit score.

 

[cevans6318]

I’ll also have to try and coordinate selling my current truck in time so it won’t show as debt when I get financing for the new one. I have my Jeep to drive in the interim, but it’s kinda sketchy and not super reliable.

I am in that same boat. Need to get rid of my 21 before then. Hope that loan doesn't affect the new loan. Don't want to start selling the 21 until I know the 22 is close to being done or somewhat close.

 

[Aseras]

I didn't buy a truck to improve my credit score.

It's patterns too. even if you have a absurd credit score with only credit cards, if you don't have a history of auto loans you won't get the best rates or deals or even approved either. Once you have a couple without any negatives, you can buy pretty much whatever you want.

 

[Grimgreg]

Don't need everyday. If you pay in full ( remaining statement balance, excluding new charges ) you won't pay interest, but the new balance will report.

So if you charged $376, bill is $376 but between statement cut and due date you've charged another $212, by paying the 376, you won't pay interest on the 212. But $212 will be reported as the current balance.

Credit cards are voodoo for score. generally you want them all reporting a 0 balance, but you want one to have a very low balance on occasion. The ratio of usage to limits also plays into the score, both overall and per line.

The most important thing is be predictable. doing things out of the ordinary are what knock you. If you constantly do X, you end up in the "X" bucket and your score follows the x bucket rules. If you do Y, it can knock you. Even if Y is suddenly pay off a balance. its not normal for you.

Whole system is BS.

Yep, happened to us last month. We tend to not use credit cards much, and have 0 debt beyond a mortgage. Took a trip last month and paid for everything with a credit card. Paid it all off right away, but that sudden spike in use dropped the credit score about 30 points.

 

[SnowBlaZR2]

There were no strings attached with my 0% for 48 month financing. All of the discounts were the same, whether I chose 0%, my own financing, or another source. I realize that is not always the case, but it's not always an either/ or deal with 0%.

This was my experience as well. At that point, no reason not to take the 0%.

 

[jl13]

It's patterns too. even if you have a absurd credit score with only credit cards, if you don't have a history of auto loans you won't get the best rates or deals or even approved either. Once you have a couple without any negatives, you can buy pretty much whatever you want.

happened to me on first new vehicle purchase, declined by 2 financing institutions and approve by Ally who later sent me a check for a little over a car payment after settling on a class action suit for high interest rates I think

 

[d19r93]

Not sure if someone touched on this already, but they do charge a fiance fee when you do that. 0% is truly 0%, but you pay a price per $1000 financed as well. It's usually only a couple hundred finance charge, but that one got me when I bought my 2015 Dodge Charger R/T. It was 0%. BUT, it cost be $287 for finance charges.

 

[mikeru82]

Not sure if someone touched on this already, but they do charge a fiance fee when you do that. 0% is truly 0%, but you pay a price per $1000 financed as well. It's usually only a couple hundred finance charge, but that one got me when I bought my 2015 Dodge Charger R/T. It was 0%. BUT, it cost be $287 for finance charges.

Who is "they"? I looked over my purchase order very closely before signing anything, and it did not have any unexpected charges anywhere on it. This is the first I've heard about any finance charge being attached to the 0% deal.

 

[Idahoktm]

Not sure if someone touched on this already, but they do charge a fiance fee when you do that. 0% is truly 0%, but you pay a price per $1000 financed as well. It's usually only a couple hundred finance charge, but that one got me when I bought my 2015 Dodge Charger R/T. It was 0%. BUT, it cost be $287 for finance charges.

That's not true. I wasn't charged anything for the 0% loan.

 

[SnowBlaZR2]

Same as @Idahoktm and @mikeru82 here. No finance charges on my order.

 

[Sal731]

I ordered my truck last April and locked in zero percent. Delivered on 6/15/21 and the honored the zero percent and gave me a ten percent mark down on the truck. I didn’t put one penny down. Finances the entire truck. Zero for 72 months. It’s free money. No need to rush to pay it off. No interest accruing is the only way to purchase a vehicle. It’s even better than cash. Even if you have the cash making lumps in your mattress you could invest that money to make more money while you make your monthly payments. Shop around till you find the dealer that wants the sale. Be honest with them. I’m buying a truck but I need a minimum five k off sticker. If they can’t do it shop around. Pleanty of dealers looking to make sales

 

[louscrw]

I got the same deal on my 21 Limited purchased in Feb 2021

EDIT…didn’t add my quote…0% for 72mo, no hidden fees, $5K off sticker

 

[MO Rebel]

Not sure if someone touched on this already, but they do charge a fiance fee when you do that. 0% is truly 0%, but you pay a price per $1000 financed as well. It's usually only a couple hundred finance charge, but that one got me when I bought my 2015 Dodge Charger R/T. It was 0%. BUT, it cost be $287 for finance charges.

That’s not the way the current 0% financing is working. There are $0 in finance charges or fees. Take the total amount financed and divide by the number of months, and that’s your monthly payment.

 

[jl13]

Thats weird, i know sometimes you might not get an incentive if you choose the 0% but i never heard about any charge for 0%.
Maybe you got hit by a shady dealer document fee of some sort

 

[Ex_dutch]

So I pay my CC balance every month. The CC company keeps sending me junk to increase my limit. I don’t need or even want credit, but are you guys saying that it increases the credit score through the ratio thing?

 

[User_3336]

Has this thread turned in to "Credit Counseling 101"?

 

[Sal731]

Well it is called zero percent financing and without top credit you won’t get it

 

[cevans6318]

Well it is called zero percent financing and without top credit you won’t get it

I have top credit and I didn’t get it.