Amex "Interest Charge on Promotional Balances"

[mindaugas]

I have both interest on purchases which I understand but then also this, and it's a significant amount. What exactly is "Interest Charge on Promotional Balances" ? This is for a blue cash everyday that has a 0% interest promo that has long since been over. I was carrying a balance at the time but it was $315 and this fee was $56.93. On top of interest for purchases. 

[daybreakgonesXe]

Long story short, you were charged the amount of interest as if you never had a 0% intro period in the first place on these purchases because you did not pay for all the purchases made under the 0% promo in full before the 0% ended.

[mindaugas]

Ok, that makes sense. So do I keep getting charged interest for those? I paid my balance off in May, just paid it off again. Meaning, if I carry a $0 balance going forward would I incur more interest charges for past purchases? 

[RonM21]

My first thought is no, that should keep it from happening. But I'm not certain on that, and maybe someone else can verify.

[daybreakgonesXe]

RM21 is right; as soon as you pay the balance in full, it will stop the interest charges. However, say your statement cut on the 15th and you just paid it today. On your next statement, you will still see interest charges since they would have charged you interest on all the days from the 15th up until today, the day you paid the balance in full.

[mindaugas]

Thanks. So I may get another interest cahrge but it will only be for the small balance I was previously carrying. 

[daybreakgonesXe]

Indeed; that larger, almost seemingly "lump-sum" was just the back interest from the 0% promo not being PIF, so any interest you accrue from here-forward will be on the smaller balance and therefore be a lot smaller!