What is the minimum payment on a 0% credit card?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
2 posts
Money card
Centurion Member
Centurion Member
 
Posts: 1361
Joined: Tue Jun 28, 2011 10:13 pm
Location: New York state

What is the minimum payment on a 0% credit card?

Postby Money card » Wed Sep 07, 2011 8:57 pm

my 1 year is up in 1 month on my premium green card. If American express has no promotions on the gold rewards card I was thinking of this. I'm looking into the clear or blue cash the card with no annual fee. I believe American express is running 0% interest for the first six to 12 months.

let's say I use the clear card I charge 124.00 1 month and 136 another month and 100 the third month, let's say the minimum monthly payment is 15.00, I only pay 15.00 the next month. is there any interest?

I know if the interest rate is 17.24 and you charge 124.00, you make a minimum payment of 15.00. You owe the 109 times the 17.24 plus the 136.00 but if it's 0% interest shouldn't there be 0% interest until the 6 months or 1 year comes up? And If I decided to keep the Clear or Blue Cash and let's say the 5th month I charge 117.00, I know the interest rate will be 19.31 If I decided to keep the card. I guess I would then owe 102.00 times 19.31 plus my new monthly charges. but what about 0% interest?


LTomBerry
Platinum Member
Platinum Member
 
Posts: 57
Joined: Mon Apr 12, 2010 4:04 am
Location: Kansas

Postby LTomBerry » Thu Sep 08, 2011 8:15 pm

How does American Express calculate my minimum due payment on my consumer credit card?

To compute the Minimum Payment Due, we start with the highest of:
-2% of the New Balance (excluding any overlimit amount and late fees charged on the statement);
-Interest charged on the statement plus 1% of the New Balance (excluding any overlimit amount, late fees and interest charged on the statement), not to exceed 4% of the New Balance; or
-$35.00.

Then, we add any late fees charged on the statement and 1/24th of any overlimit amount, round to the nearest whole dollar. After that, we add any amount past due.

From AmEx Website



Return to “Finance Charges & APR Compare”

Who is online

Users browsing this forum: No registered users and 2 guests