0% introductory rate = Prime Rate + 0% APR?

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LKudos
 
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0% introductory rate = Prime Rate + 0% APR?

Postby LKudos » Mon Aug 10, 2009 10:49 am

Hello,

I just want to make sure I got this right. When a card issuers offer 0% intro rate does it mean you'll have absolutely no interest to worry about for the first few months (which means the bank would cover for the prime rate) or do you actually have the prime rate to take care from day 1?

I looked for some answers online and obviously people (various card companies included) have different definitions of what 0% intro means. ;)

Cheers,

Louis


jeffysdad
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I've never seen...

Postby jeffysdad » Mon Aug 10, 2009 3:03 pm

an instance where "0%" meant prime plus 0. In my experience it always means absolutely zero interst for a specified period of time as long as you pay at least the minimum always on time and abide by any other rules that might be lurking in the fine print. There always is a transaction fee, which often used to be capped at $50 and then $75. Now I think some of the caps have been lifted. The fee used to almost always be 3%; now I think some charge 5%. It's a lot different now from when I used to card surf. If you're going to do it the key is to read all the disclosures. When I would do it I would be sure to ask rep on the phone very specifically what all the fees, rates were, etc. Good luck.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

LKudos
 
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Joined: Fri Jul 31, 2009 4:22 am
Website: http://www.cardkudos.com
Location: Canada

Postby LKudos » Tue Aug 11, 2009 4:43 am

Thanks for the info. I completely forgot I could just ask a Rep lol.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Wed Aug 12, 2009 12:46 pm

As jeffysdad pointed out you really have got to pay attention to the balance transfer fee and how it's calculated. On small balances doing a transfer pointless. If you have a large balance like 10k, then it's not bad if the transfer fee is capped at $75 or $100, because that's 1% or less than the total amount.
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.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred



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