I want to get a credit card to do my Christmas shopping with. The card has a 19.8% APR and No Payments until June 2008. Will I be allowed to pay off the balance before June and not have any interest to pay on it?
2007-12-05 01:58:21 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
Check with the card issuer. Read all the fine print and be sure you understand it. Usually no payments until June 2008 means that you will be required to start making payments at that time. But usually if you pay the entire balance off before that date, they you don't incur interest. But if any balance remains, then all the interest is added to your balance. Also learn what will happen if you are late with a payment. Find out what your new interest rate will be. Often you get a late charge and they will increase your APR by 10 to 20 %. Be careful.
2007-12-05 02:29:08 · answer #1 · answered by J M 4 · 1⤊ 0⤋
Your due date will most likely remain unchanged. The reason is they need to stagger due dates so that they don't have to process 800,000 payments all on the same date. A note you should be aware of. Don't use your card until your payoff has been posted. Here's and example of why you should wait. Let's say you've carried a balance of $3000 and you've been paying interest on that balance. You send a check to pay it all off on Monday. But it isn't posted until Friday (mail transit and internal processing delays). On Wednesday, you buy something for $1000. You won't get the grace period on that $1000 because your balance hasn't been brought to $zero - payment hasn't been posted yet. And your minimum payment will be based upon $4000 balance. Grace periods apply if your full payment is posted before the due date. If you wait until your $3000 payment has been posted, you'll be starting all over and you'll get the grace period again. Also, your minimum payment will be based upon the $1000 balance, not the $4000 one. You'll save some interest.
2016-05-28 07:00:30 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Generally yes, but you should ask to be certain. I suspect that it actually means no interest charged until June 2008. You probably have to make a monthly payment.
2007-12-05 02:08:37 · answer #3 · answered by Harbinger 6 · 0⤊ 0⤋
It all depends on the terms and conditions you agreed to in order to get the card. (Read ALL of the fine print.) You'll probably have to pay the interest accrued up until the time you pay it off--that's normal.
2007-12-05 04:48:46 · answer #4 · answered by Sam B 2 · 0⤊ 0⤋
Probably not. Just becuase they dont' EXPECT or require payments, does not mean that interest does not accrue from day one. You will still have interest up to the day you paid it off.
2007-12-05 02:06:58 · answer #5 · answered by Marvinator 7 · 1⤊ 0⤋
You really must make the company agree to a Early Pay off without any penalties. Make sure you have this agreement in writing. As most will agree that you can pay it off and no problems.
2007-12-05 02:06:53 · answer #6 · answered by culater 3 · 0⤊ 1⤋
Yes, and you will be saving interest with every early payment you make!
2007-12-05 02:41:18 · answer #7 · answered by Anonymous · 0⤊ 0⤋