Accrued interest during intro 0% apr period?

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Accrued interest during intro 0% apr period?

Postby jessi1282 » Mon Oct 13, 2008 11:55 am

Hi, I'm pretty new to credit cards and also to this board, so I've got a question for all of you experienced credit savvy people out there... I signed up for a Citibank Platinum Select mastercard back in early November. It had a standard purchase 0% intro apr for 12 months, which will switch to a 9.99% when the intro period ends. I been carrying a balance of about $2,000 for the past few months, and was planning on dipping into my savings account to pay off most of the balance to bring it down to $500 by the time the intro period ended. However, a few friends have warned me that if you don't pay off the entire balance on a credit card by the time the intro period ends, they'll make you pay any interest that would have accrued at the regular rate during the intro period. I thought this policy was only used by department store credit cards, but I could be wrong...

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Postby Mogul of Pineapples » Mon Oct 13, 2008 12:15 pm

Welcome to the forum!

Well have you been making any purchases on the card too? If you've made purchases using the card while you have a balance transfer, all payments "will go towards the lower interest rate first" they like to say. Which basically means your payments are going towards paying off the balance with the 0% and not the balance with the standard APR.

When the intro period ends you will not be charged any accrued interest for the past year. That's ridiculous that someone said that. The interest will switch to standard APR from the day the promo expires and onward.

I recommend paying off the balance with your savings. Your savings is only earning 1 to 3% and your credit card is charging 10 to 15%. Sure, you may need that savings in an emergency, but you can always put that amount back on the card if that were to happen.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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Postby goober » Sat Oct 18, 2008 6:49 pm

mine didn't. make sure you transfer your balance again before the 0% runs out so you don't pay any interest.

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