[Areeba]

I have a credit card related question.
If I have a CC with 0% APR, can I technically just pay the minimum balance on it for a year, and then pay the entire balance together?

Assume I am putting that money in HYSA where it is earning me interest.

Also assume that the Credit utilization rate will be low.

Would this hurt my credit score?

[Megan]

Is it a business card or a personal card? It’s not the world’s worst play to carry 0% if they are dept assuming you are just saving the money and letting it earn during the 0%.

Versus floating yourself.

Doing this on business cards is a better play than personal because business don’t report to personal credit therefore debt is basically invisible.

[Bill]

You could, but it would hurt your credit. The tiny rate arbitrage isn’t going to do much for you. May as well just use a rewards card

[Sue]

It might hurt your score a little. But it depends on your total percentage of debt to amount of credit you have I think. I’m doing the same thing.

I am choosing not to pay off the balance until my intro period of 0% ends.

I’d rather get the interest from the HYSA. I have the money to pay it off.

It’s all legal fees from my stupid divorce.

[张扬]

I’ve done this before and it caused my credit score to drop from perfect 850 to the high 700s, so it’s inconsequential if you have great credit.

[Author]

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