I have a new card with 6 month 0 APR. I would like to know If I purchase something with it will I have to pay it back immediately or would I have the 6 months to pay it off? I know with other cards I would not have to pay until the 6 months is up. I just want to make sure because Ive heard horror stories of American express being quick to raise your APR if you pay late. As long as I pay the min balance and have it at 0 by the end of the six months will I be ok?
2007-10-15 09:34:00 · 5 answers · asked by nobleone6969 1 in Business & Finance ➔ Credit
As long as you make "at least" the minimum monthly payment and have it paid at the end of the 6 month promo period you should be in good shape. Plus you will have a nice (interest free) payment history reporting on your credit reports which will help your scores.
Do not let the amount you owe go past the promo period.
Depending on the promo they offered you, if there is still a balance remaining after the promo ends, you may have to pay the interest from the full amount you charged/balance transferred.
Also, if you do not pay it off within the 6 month period, you will look like you are struggling to pay your bills. Amex will definately notice.
The best thing to do is to divide the amount you charged or balance transferred by 6 and pay that amount (or more).
That way you will know to budget that much each month and you won't have a large amount left to pay in the 6th month.
2007-10-15 10:34:25 · answer #1 · answered by echo 7 · 0⤊ 0⤋
I thought that 6-month 0% APR wsa just an introductory rate for purchases. I would recommend you don't carry over a balance month to month. Also, contact them or read the material that came with the card to be absolutely sure.
As a side note, I would encourage that you NOT use credit cards at all or, if you must, use them VERY sparingly and never go over 30% of the credit limit.
2007-10-15 09:39:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You can take as long as you like to pay off the actual purchase, as long as you make at least the minimum monthly payments. They simply won't charge interest on the first six months. On the seventh month and beyond, you will only pay interest on the balance you still owe.
2007-10-15 09:58:28 · answer #3 · answered by G. Whilikers 7 · 0⤊ 0⤋
Go to: http://www.credit-card-gallery.com/calculator/minimum_credit_card_payment_calculator and solve your problems. This calculator will help you find out the amount you will pay to the credit card company if you continue to pay just the monthly minimum of your outstanding credit card balances.
2007-10-16 00:21:03 · answer #4 · answered by caleb b 2 · 0⤊ 0⤋
Didja ask AE?
2007-10-15 09:40:04 · answer #5 · answered by smiling_freds_biz_info 6 · 0⤊ 1⤋