0 APR Cards Before Big Law? Forum

[Anonymous User]

Don't know much about finance. Starting big law in about a month, have a bunch of stuff I need to buy, no money, good credit. My current card is 18 percent APR. what are good cards for essentially interest free loans with minimum payments?

I just did Chase Slate and got auto approved but want a backup if this doesn't pan out. What other cards are 0 APR and good for the no money but big law situation? I'm sure I'm not the only one doing this. Thanks!

[Anonymous User]

https://www.citi.com/credit-card-detail ... redit-card

[071816]

Don't know much about finance. Starting big law in about a month, have a bunch of stuff I need to buy, no money, good credit. My current card is 18 percent APR. what are good cards for essentially interest free loans with minimum payments?

I just did Chase Slate and got auto approved but want a backup if this doesn't pan out. What other cards are 0 APR and good for the no money but big law situation? I'm sure I'm not the only one doing this. Thanks!

what stuff? this doesn't sound like a very good idea. if you have a job, why do you need to make such shit financial decisions? didn't you get some sort of salary advance or something? making minimum monthly payments on a credit card is a TTT move unless you're absolutely desperate and have literally no other options.

[thesealocust]

AFAIK 0 APR has a lot more to do with your credit history/score than with general market conditions.

I recently got an American Express Blue Cash Preferred card and loved it. The annual fee sucks, but you can find all kinds of crazy up-front deals and then it's got pretty good cash back on gas/groceries. When I applied for it earlier this year, I got 0% APR (as long as you make minimum payments) for a year plus $200 cash back, and the card has a $75 annual fee.

The only down side is every now and then you'll find somebody who won't accept American Express (my health insurance can auto-bill to Visa and Mastercard but not AmEx, for example), so it can't be your only card, but I've found that to happen pretty rarely.

[thesealocust]

Don't know much about finance. Starting big law in about a month, have a bunch of stuff I need to buy, no money, good credit. My current card is 18 percent APR. what are good cards for essentially interest free loans with minimum payments?

I just did Chase Slate and got auto approved but want a backup if this doesn't pan out. What other cards are 0 APR and good for the no money but big law situation? I'm sure I'm not the only one doing this. Thanks!

what stuff? this doesn't sound like a very good idea. if you have a job, why do you need to make such shit financial decisions? didn't you get some sort of salary advance or something? making minimum monthly payments on a credit card is a TTT move unless you're absolutely desperate and have literally no other options.

Making minimum payments on a 0% APR credit card is financially brilliant, as long as you have the slightest modicum of self control. It's literally free money.

And the weeks before starting a job at a big firm, which may/might involve one-time expenses (moving, clothing, bar trip, etc.) is like, the perfect time for that.

[071816]

Don't know much about finance. Starting big law in about a month, have a bunch of stuff I need to buy, no money, good credit. My current card is 18 percent APR. what are good cards for essentially interest free loans with minimum payments?

I just did Chase Slate and got auto approved but want a backup if this doesn't pan out. What other cards are 0 APR and good for the no money but big law situation? I'm sure I'm not the only one doing this. Thanks!

what stuff? this doesn't sound like a very good idea. if you have a job, why do you need to make such shit financial decisions? didn't you get some sort of salary advance or something? making minimum monthly payments on a credit card is a TTT move unless you're absolutely desperate and have literally no other options.

Making minimum payments on a 0% APR credit card is financially brilliant, as long as you have the slightest modicum of self control. It's literally free money.

And the weeks before starting a job at a big firm, which may/might involve one-time expenses (moving, clothing, bar trip, etc.) is like, the perfect time for that.

how does 0 percent APR work? the credit card company just doesn't charge interest for a set number of months or something?

[thesealocust]

Yep!

I've got a ~$3,000 balance sitting on my AmEx right now, which has 0% APR through April 2016. The only catch is I have to pay a whopping, massive, budget-destroying $35 minimum payment per month. Otherwise that balance accumulates no interest until the 0% period is over (it's usually a 6 or 12 month period when you open a new account). There's literally no reason for me to make payments, it costs me nothing to let that balance sit (and grow).

[orangecup]

Yep!

I've got a ~$3,000 balance sitting on my AmEx right now, which has 0% APR through April 2016. The only catch is I have to pay a whopping, massive, budget-destroying $35 minimum payment per month. Otherwise that balance accumulates no interest until the 0% period is over (it's usually a 6 or 12 month period when you open a new account). There's literally no reason for me to make payments, it costs me nothing to let that balance sit (and grow).

Do you recommend picking up a 0% APR card even if there's no pressing need? ATM I'm using cards to maximize my cash back and just paying them off in full each month.

[071816]

Yep!

I've got a ~$3,000 balance sitting on my AmEx right now, which has 0% APR through April 2016. The only catch is I have to pay a whopping, massive, budget-destroying $35.00 minimum per month. Otherwise that balance accumulates no interest until the 0% period is over (it's usually a 6 or 12 month period when you open a new account). There's literally no reason for me to make payments, it costs me nothing to let that balance sit (and grow).

interesting. I actually didn't know this was a thing. I guess the credit card company is banking on you not having the self discipline or the means to pay back the balance in full when it comes due. but if you do, it doesn't sound like a bad deal.

[thesealocust]

Yep!

I've got a ~$3,000 balance sitting on my AmEx right now, which has 0% APR through April 2016. The only catch is I have to pay a whopping, massive, budget-destroying $35.00 minimum per month. Otherwise that balance accumulates no interest until the 0% period is over (it's usually a 6 or 12 month period when you open a new account). There's literally no reason for me to make payments, it costs me nothing to let that balance sit (and grow).

interesting. I actually didn't know this was a thing. I guess the credit card company is banking on you not having the self discipline or the means to pay back the balance in full when it comes due. but if you do, it doesn't sound like a bad deal.

Yeah, it's a mix of things. Swipe fees help, which are like 2.75%? or something like that, that the CC company earns whenever you use the card. And often the cards have an annual fee (like I said, mine is $75/year but I got a $200 statement credit by spending a certain amount in the first few months, so it's a race - if I cancel in the next 2ish years, it'll be net positive for me, otherwise they might wind up making money off of me). And like you say, some people will maintain a balance and wind up paying for it later.

Finally, interest rates are super low in the market right now, which means the opportunity cost of providing 0% APR to customers with good credit is particularly low.

Yep!

I've got a ~$3,000 balance sitting on my AmEx right now, which has 0% APR through April 2016. The only catch is I have to pay a whopping, massive, budget-destroying $35 minimum payment per month. Otherwise that balance accumulates no interest until the 0% period is over (it's usually a 6 or 12 month period when you open a new account). There's literally no reason for me to make payments, it costs me nothing to let that balance sit (and grow).

Do you recommend picking up a 0% APR card even if there's no pressing need? ATM I'm using cards to maximize my cash back and just paying them off in full each month.

Maybe. It's possible interest rates will go up in the near future, meaning it will be hard or impossible to find a 0% teaser rate on a credit card. But on the other hand, it's only ever an intro rate, so unless you know it will be useful for a period of a year, it's just an account you'll probably want to close later. Plus if there's an annual fee, it could cost you money if you get lazy.

[Desert Fox]

[thesealocust]

Well Mr. Fox, as you well know I am a small business owner who lives in a van down by the river, and accidentally moved to San Francisco for a few months in the middle of the year. As a consequence, it's less about earning a return on that 3k, and more about having adequate cash reserves for boondoggles / eating.

[Anonymous User]

OP here. By stuff I mean I need food, transportation and ikea furniture but only have enough cash to rent an apartment - probably a little less. I'm not reckless with money. It's merely the fact I've had no income during bar prep, and picking the wrong clinic such that I couldn't have a part time job this past year. 0 APR seems like the right bet. I don't really want to start big law living off ramen and pb and j, and looking like a toad before I've even started working hard.

I saw the Chase one. Slate was 0 APR for 15 mos, but is there another one O should consider as well? I basically got auto approved for 10k mostly just because I put in my anticipated salary and said I had no delinquent accounts, but there were no q's about student loans so I'm a little worried as I was rejected for an Amazon card on this basis a few months ago.

[gbeetee3]

Get the Citibank Double Cash Card. The best overall card for anyone making big purchases is the capital one venture card, but you would do this maybe a few weeks before you start your job so you would have $$ by the time the bill rolls around. There is an APR though and a yearly fee of $59 dollars but the $$ you get back is enough for a flight if you use 3k within the first 3 months.

[UMich11]

Don't know much about finance. Starting big law in about a month, have a bunch of stuff I need to buy, no money, good credit. My current card is 18 percent APR. what are good cards for essentially interest free loans with minimum payments?

I just did Chase Slate and got auto approved but want a backup if this doesn't pan out. What other cards are 0 APR and good for the no money but big law situation? I'm sure I'm not the only one doing this. Thanks!

Most credit cards offer a 0% APR for the first 6, 12, or 18 months. Just apply for any number of cards, use it and pay it off after your first month.

[2014]

I'm doing this now with the citi double cash, didn't see any better options

[lawhopeful10]

I'm pretty uninformed when it comes to credit cards but I'll probably look to get my first one once I starting working after this year. Does the 0% APR only matter when you can't pay off the balance at the end of the month? It you always pay off the balance does the APR matter at all and what should people be looking for in a first credit card? Thanks

[2014]

I'm pretty uninformed when it comes to credit cards but I'll probably look to get my first one once I starting working after this year. Does the 0% APR only matter when you can't pay off the balance at the end of the month? It you always pay off the balance does the APR matter at all and what should people be looking for in a first credit card? Thanks

Assuming you don't want to dive down the rabbit hole of maximizing points you just want a strong card that offers the most return for the spending you do the most of. Citi double cash is 2% on everything (and 0% APR but you are correct that shouldn't matter) and would be where I'd start.

If you can spend 3-4k in the 3 months following getting the card and want to be more involved the Chase Sapphire Preferred and Citi Thank You Premier both have sign up bonuses and waive their yearly fee ($95) the first year and the bonuses are worth at least ~$500 cash and potentially a few times that if you put the points into the right airline and buy the right flights with them.

[lawhopeful10]

Alright, makes sense. Thanks

[Anonymous User]

Thanks to whoever started this thread. I had been researching this exact issue all day.

How many credit cards is it acceptable to own for a fresh-out-of-lawschool big law associate, w/ a pretty good credit score, who will need to be fronted a lot of cash for the next 1.5 months?

[hoos89]

I'm pretty uninformed when it comes to credit cards but I'll probably look to get my first one once I starting working after this year. Does the 0% APR only matter when you can't pay off the balance at the end of the month? It you always pay off the balance does the APR matter at all and what should people be looking for in a first credit card? Thanks

Might want to check your credit score. A lot of the best cards require you to have a credit score north of 700, and if you haven't had a card yet your score might not be that great. If so, it wouldn't be a bad idea to pick up a card for people with worse credit right now and build your score for a year or two.

[emciosn]

Recently got a credit card to hold be over and to pay for one-time expenses prior to my start date and went with the citi double cash card. Right now the citi double cash card is almost universally considered the best no-yearly-fee, cash-back card for general purchases. The 2% really adds up over time. I think you get 15 months 0% APR--this means that you pay no interest on the balance you carry for the first 15 months. In other words, you don't need to get your balance down to $0 until the end of the fifteenth month.

ETA: after month 15 your interest rate will probably be in the 20s so be sure to pay off that balance each month. Good to still use the card to get the 2% cash back though.

ETA2: Note that even during the 0% APR period you have to make "minimum" payments--probably like $20-50 a month depending on your balance.

I think you need a pretty good credit score, like above 700. Also for all you credit card novices be careful opening up too many at once. Each time you open up a new card, there is a negative impact on your credit score for a short time (due to the "hard check" on your credit by the card issuer). Obviously having the card and paying the balance will benefit your credit score in the long term, just be aware of this short term effect.

ALSO with respect to yearly fee cards, know that if you cancel a card it also has a negative impact on your credit score (which you would do if you don't want the card and don't want to pay the fee anymore). If you get a no-fee card you can just cut up the card, no need to officially cancel it. Might make sense to get a no-fee card as your first one since you don't exactly know what you like/need in a card yet.

Just do a google search for "best cash back card"; "best miles card"; "best intro APR card"; etc. and you can get a good idea of what the good cards are for each category. Then decide what you want in a card. I went with cash back as a baseline. Also might benefit from learning a little about how credit scores are calculated (easily done by spending a bit of time on the google).

ETA3: After you get a little more experience with credit cards you can mix and match to max your return (for instance there are cards with revolving 5% categories, the AmEx blue cash preferred gives you 6% on groceries, 3% on gas) but in the meantime the citi double cash card will give you a good baseline cash back on all purchases to get your feet under you.

[chuckbass]

I have an Amex EveryDay Card with the same 0 APR / low payment setup as TSL but with no annual fee. It's only 0 APR for the first year but I think that works in your situation.

[thesealocust]

• For credit score purposes, be especially careful of your oldest credit card. This is a strong argument for opening a no-fee card as your first account, the never canceling it - but using cards with fees when/as useful for your financial situation down the line.
• The total number of cards you have is probably less important than their limits. Every time you open a card it will (temporarily) hurt your credit score, which makes sense - somebody opening a large number of new accounts is likely to be more risky!
• You can looking into 'churning' if you want to game rewards dollars and the like. There are people who get the card with 5% back on groceries, buy amazon gift cards at the grocery store, and then die satisfied with their exploitation of the system. Different strokes for different folks and all.

[Outis Onoma]

When the application asks for income, do you put your full salary, or only the amount you will earn during your stub year? Would there be any benefit to waiting until January 1st so you can put down your full salary?