Re:“Sonicwall products are not returnable”
by mindslight on Friday September 09, 2016 @03:01PM
(#12465134)
I don't know if (1) is strictly necessary in the context of (3). But then:
5. You refrain from further transactions with that card, since your grace period is gone and new purchases will immediately accrue interest.
(Although I suppose you could operate in an different paradigm where you make payments as frequently as possible with most all of your spending money, and then new purchases on the card are just effectively taking away from that payment)
Re:“Sonicwall products are not returnable”
by smsm42 on Friday September 09, 2016 @03:34PM
(#12465415)
In theory, yes, even non-zero-interest loan can be good. In practice, I'd rather not bother given how easy it is to make a mistake and end up overpaying massively because you failed to read some fine print or account for some obscure rule of how purchases combine and accrue interest. Zero is easy. Non-zero is complex and you are not in the position of advantage there as they know their rules much better than you, so in most cases it's not worth it. You can do it right if you have the knowledge, but then surely advice from some random guy on the internet is not going to change your opinion anyway :)
Re:“Sonicwall products are not returnable”
by mindslight on Friday September 09, 2016 @04:09PM
(#12465664)
I completely agree. I just wanted to highlight a major one of those traps that can get you if you do start carrying a balance. Doing so should only ever be out of complete necessity, so whether you can get an interest-free offer seems somewhat beside the point.
FWIW it feels like the additional complexity of those offers coupled with the relaxing of standard payment behavior is a great way to trip people up.
Re:“Sonicwall products are not returnable”
by grahamburger on Friday September 09, 2016 @01:59PM
(#12464597)
> But if you notice you can't use it without carrying a balance - don't use it at all.
That was literally my entire point :-)
I have no doubt that many people have this figured out, but my point is that 'use your credit card for everything always' isn't necessarily good advice for everyone.
The first rule of using credit cards for fun and profit is to never carry a balance. Ever.
Now, there is an exception to this rule, on the following conditions (all must apply):
1. You do not pay any interest (yes, possible, many cards have promotions, especially store/brand cards)
2. The purchase is for a very long-term item, like major electronic appliance or a alike, that you will be using for several years at least.
3. Due to some circumstances you couldn't foresee you could not save for the purchase upfront and you absolutely need it right now - e.g., you refrigerator suddenly died and you need a new one ASAP.
4. You know and calculated the monthly payment which allows you to pay off the whole sum in a year or less (and of course before promotional no-interest period expires), and this monthly payment is less than what you would be able to save if (3) did not apply. If this rule is not true, you can not afford it, look for a cheaper alternative. Also, never pay just a minimum payment, this is a trap.
Credit card balance is a loan, and these rules are a way to make it into a cheap loan. But be careful - it's like a can of gasoline, can be very handy to get you into places you want to be if you handle it right, but handle it wrong and you can end up badly burned or worse.
If you follow these rules, you can use credit card with relative safety, as even if you overspend one month, you'll have to cut back next month to pay for it. Also improves your credit score :) But if you notice you can't use it without carrying a balance - don't use it at all.