I was looking at a credit card application and read fee disclosures. It%26#039;s offering 0% APR (bal. transfer, purchases) for 12 bill cycle and below states minimum %26quot;$2.00 for each billing cycle in a periodic which a periodic finance charge is payable%26quot;.
If I have this card and made a purchase and/or balance transfer do I have to pay a minimum charge of $2.00 every bill? (even if it is 0% APR bal. transfer and purchases)).
It reminds me of what happen to my father who made a balance transfer on 0% APR for 12 bill. Card company also bill him with credit protection plan which he did not apply. He had the protection cancelled and he got slapped with extra $2.00 on bill. (Note that previous 2 bills he never got this extra $2.00). First of that .10 charge (purchases) and the APR for that is 200% or so and that equates to $2.00. The second bill of that he got a charge of .01 with APR stated 2000% or so that equates to $2.00 extra on his bill. He paid off the balance after that.
What is a minimum finance charge?credit rating
During the promotional period, if you trigger finance charges because of late payment or whatever, then the finance charge is the rate in affect applied to applicable balances or $2.00, whichever is greater. The issuer really is happy to carry your balance because it lowers the cost of getting you as a customer. They are also betting that many people will violate one of the conditions for maintaining the rate. Sooner or later the bank will make money on you as a customer. Read the conditions and beware of fine print.
What is a minimum finance charge? loan
No, what it says is that in periods where a finance charge is applicable the minimum amount will be $2.00. In periods where there is no finance charge, the minimum would not apply. Your father had a charge for %26quot;credit protection%26quot; and then ther would have been a finance charge that period.
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