I recently transfered a high interest rate credit card to a 5.99 fixed rate. The offer would be fixed until the entire balance was paid off. However after looking the first statement i noticed the APR rate was 41 percent. whats going on?? why is the nominal rate 5.99 and the APR 41%.
2007-11-11 14:10:39 · 5 answers · asked by unknown 1 in Business & Finance ➔ Credit
The bank did include a 3% transfer fee; however it was included into the 5.99% offer. I have not used the card since the transfer and my only goal is to pay the card off.
2007-11-11 14:56:29 · update #1
read the details
my bet is that you do get 5.99 on the balance you transfered, AND that you get it on nothing else. All payments go toward the transferred balance and its interest only.
all other charges of every description get 41 percent APR and none of the payments go toward them until the transferred balance is paid off. and then that 41 percent APR balance compounds every month until forever [in essence].
***
STOP CHARGING ANYTHING on this card.
do NOT use it ever again. not for any thing or any reason. never, Never, NEVER ever.
Physically destroy the card. Don't get a replacement.
And pay off as fast as possible.
if you don't you'll wind up so far in the hole that bankrupt will be your only out.
2007-11-11 14:18:33 · answer #1 · answered by Spock (rhp) 7 · 0⤊ 0⤋
They probably charged you some $ to make the transfer. That was probably 3%. 3% APR will be 36% or more. Added to the 5.99 it will be in the 41 % range for the one month. One thing that is probably true is if you have anything else on the credit card, you will be paying off the low rate balance first and all the higher rate purchases will accumulate and in the long run you will pay even more in interest. If you have another credit card that you can use for new purchases, use that as long as you only charge what you can pay off right away.
2007-11-11 15:56:52 · answer #2 · answered by dinky 2 · 0⤊ 0⤋
The APR includes any fees involved with the credit card. Where the nominal rate is the rate that is charged on just the balance transfer.
2007-11-11 15:03:11 · answer #3 · answered by EB 1 · 0⤊ 0⤋
You just got screwed, that's what's going on. Typical bait and switch tactics by the credit card companies. They get you to transfer a balance, then use something on their review of your credit report to jack up your rate to the max possible. Find another card. Quickly.
2016-05-29 06:58:10 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Did they include a fee for this transaction? Is it being computed in the rate?
2007-11-11 14:41:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋