Posted on March 6, 2010.
Annual Credit Card 0% Intro and the question of financing costs? So, I recently received a new credit card with 12 mos. 0% intro APR AMEX. I had to make a purchase for the holidays and give me time to enjoy the 0% APR and make payments over time with 0% APR.
My question is when I receive my first bill and the minimum payment shown on the statement, should I pay any fees or charges? I know it will not be of interest since I have 0% for April 12 MOS, but the question is if I pay only the minimum and the plan to repay the balance within the next few months should I pay something?
For example: Let's say I support a total of $ 600 instead of paying the full $ 600 when the first bill comes, instead I make the minimum payment indicated, what happens? then I get charged finance charges or do I not since I was at least the minimum payment?
I think I just called AMEX and received using the average daily rate, not quite sure how it works and whether I will get charged the finance charge, even if I make the minimum payments. Please help explain. Thank you!
As indicated in the annual report is only 0%. But we must read the fine print. If you default (miss a payment or delayed), not only on their card, but all other accounts you may have, on the 0% is null and void and could rise to nearly 23% or more.
Also note that if you use the card for a cash advance that is treated differently. There is a much higher APR for cash advances and they will apply your payments to the lowest avril first means that the cash advance will accrue interest charges until you have paid your regular purchases.
I hope this will help you in your question
0% APR for 12 months is what it says it is. You will not be charged anything unless you do not pay the minimum.
The average daily rate is nothing to fear. Financial costs are determined by taking your average daily balance, by multiplying it by the APR and the number of days in the billing cycle and dividing by 365 days. Since your APR is zero, there is nothing to fear.
