How best to use interest-free CC?
I have my first long-term interest free credit card (through January 2009). Now that I've paid off all my debts (except mortgage), I'm trying to use somebody else's money for free. My questions:
1. First of all, is this a good idea? I would probably use the credit card to pay bills like cell phone, landline phone, gas, groceries.
2. I would, in-turn, increase the amount of money withheld from my pay that goes into my credit union savings, so that when the zero interest expires, I will have the money to pay off the credit card.
3. I would also periodically (maybe every 3-months?) withdraw money from the savings and maybe get some cd's or something in order to try to get the maximum amount of interest, and to make it hard for me to "spend" the savings (I've had discipline problems in the past).
4. What would be a good term for the cd's? 3-month?, 6-month, 1-year?
5. What do you all think about this plan overall for someone who has only been reformed from deficit spending for about 2 years?
6. I have tried to check all the small print on this credit card. Here's what I know so far.
- There are no balance transfer fees. (I had to transfer a balance to qualify for 0%, so I transferred the balance of CC I use and pay-off every month). Do you think I would be required to hold that balance on the credit card, or can I pay it off as soon as I get the bill? I couldn't get straight answer from credit card company.
- The zero percent interest is for purchases only. Would cell phone, utilities payments be classified as purchase?
- The interest rate, if not paid off, I believe will be 11.9 percent. Of course, I plan to pay it off, but do you think this is too dangerous?
any other red flags you foresee with this offer?
thanks for any help!