Should One Use 0% APR Credit Cards To Pay The HELOC Down

Should One Use 0% APR Credit Cards To Pay The HELOC Down

The problem with most 0% APR credit cards is the limits are often quite low. If a card only has a $10K limit, it can only be used for a few months before its maxed out. This can be potentially negative if it is a personal credit card, due to the extremely high utilization rate of the card for multiple months. As long as one is avoiding high annual/membership fees to obtain the 0% APR card(s) or the cash back, points or miles make such an expenditure worth it. For example, Chase Sapphire Preferred gives large amounts of points yet only has an annual fee of less than $100.

    • Related Articles

    • The Credit Cards Promotional 0% APR Period is Over – Cancel or Keep Them

      Does one want access to more funds? (If yes, keep them open) Will one apply for more 0% interest credit cards? (If yes, keep them open) One can get more 0% APR cards at nerdwallet.com, creditcards.com. Do the current cards have good/great benefits, ...

    • Should Someone Get A Rate Lock For Their Loan

      Depends on one's cash flow and the rate lock APR. Use the HELOC calculator to see whether a 0.5% to 1% interest rate increase (i.e. without a rate lock) would still work based on the monthly positive cashflow. If the yearly increase is too much for ...

    • What Credit Cards Are Accepted

      Our complete list is below, if one's credit card is not on the list, email us and we'll manually process the order. Apple Pay American Express Diners Club Discover Google Pay JCB MasterCard Maestro Union Pay Visa NOTE: Please be aware that processing ...

    • What Does The Effective Rate of Interest (ERI) Mean

      Debt in an inflationary environment with low interest rates is virtually free. This is due to the combination of the cost of goods and services going up in relation to the cost of money. When one applies a tax deductibility to this interest rate on ...

    • What If Interest Rates Increase

      There are fixed, hybrid and variable rate HELOCs. Variable interest rates mean the percentage will rise or fall depending on the monetary policy of the Federal Reserve. With our strategy, one's HELOC will become interest-rate immune - essentially ...