How Does a 0% Interest Credit Card Work?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
5 posts
xxmplus
 
Posts: 1
Joined: Wed Sep 25, 2013 12:19 am
Location: United States

How Does a 0% Interest Credit Card Work?

Postby xxmplus » Wed Sep 25, 2013 12:23 am

Hello everyone, I'm new here so please bear with me.

I just got my Freedom credit card and the offer at the time was 0% intro APR for the first 15 billing cycles. What does that mean exactly? If I spend $500 (in order to get the bonus), does that mean I don't have to pay it off until 15 months later (except the minimum payment every month)?

Thanks.


User avatar
nismoZtuner
Centurion Member
Centurion Member
 
Posts: 1104
Joined: Thu Jun 27, 2013 12:39 pm
Location: EARTH -CA

Postby nismoZtuner » Wed Sep 25, 2013 3:55 pm

No, that means that you still have to make minimum monthly payments- only difference is that you wont be paying any interest for the next 15 months if you have a balance..so buy anything you want and pay it off soon- Interest fee!

After those 15 months you will be paying interest on whatever amount you owe them!
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710
BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]
American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]
Chase Sapphire Preferred[7.3]
Inquires: TU(?) EX(?) EQ(?)
TCL-$19,800
Age-22

y00t
 
Posts: 2
Joined: Tue Sep 24, 2013 11:38 am
Location: none of your business

Postby y00t » Thu Sep 26, 2013 2:46 pm

The reason they do this is they hope you mess up and make late payments or procrastinate in paying off before the 0% ends. But we can beat them at their game if we are careful. It's like an interest free loan but only if you have discipline and self control to pay it off on time and not use the offer as an excuse to spend frivolously.


User avatar
nismoZtuner
Centurion Member
Centurion Member
 
Posts: 1104
Joined: Thu Jun 27, 2013 12:39 pm
Location: EARTH -CA

Re: y000t

Postby nismoZtuner » Thu Sep 26, 2013 3:02 pm

+++++++++++++++++++++++++1
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710

BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]

American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]

Chase Sapphire Preferred[7.3]

Inquires: TU(?) EX(?) EQ(?)

TCL-$19,800

Age-22

takeshi
Centurion Member
Centurion Member
 
Posts: 1393
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Postby takeshi » Thu Sep 26, 2013 3:31 pm

xxmplus wrote: How Does a 0% Interest Credit Card Work?

Read your terms. The card isn't 0% -- the introductory offer is. Also keep in mind that carrying a balance will impact utilization.



Return to “Finance Charges & APR Compare”

Who is online

Users browsing this forum: No registered users and 0 guests