CC with 0% question

[Anonymous]

I have a question about the offers you get for 0% interest for 12 months. I haven't taken advantage of any, but my boyfriend got a cc with this and did a BT. I don't know the details, but I was wondering if you do a BT onto that card and you don't get that paid off in the 12 months at 0%, do they charge you back interest? Like I said I don't know the details of the card, but I know on like a best buy store card this is the case. I just want to make him aware of this if he doesn't pay more and pay the balance off. I'm new here, just got my scores last month. I have been reading a few posts here and there. Trying to learn as much as I can so I can stay on top of things for my finances. Everyone here is great and you all offer great information, thanks for that. I was very happy when I did get my scores: TransUnion: 713 Equifax: 754 & Experian: 753 The thing hurting me is short credit history. So time will help that. Thanks in advance!!

[Anonymous]

no back interest, it starts when 12 months are up

[Anonymous]

nice scores by the way

[Anonymous]

cool thanks for the fast reply. I'm just trying to protect myself for the future when we get married Gotta keep on top of his stuff HA

[Anonymous]

Also be aware if he uses the card for purchases = they will apply payments to the 0% APR not the new purchase- effectively killing the 0%

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@Anonymous wrote:
I have a question about the offers you get for 0% interest for 12 months. I haven't taken advantage of any, but my boyfriend got a cc with this and did a BT. I don't know the details, but I was wondering if you do a BT onto that card and you don't get that paid off in the 12 months at 0%, do they charge you back interest? Like I said I don't know the details of the card, but I know on like a best buy store card this is the case. I just want to make him aware of this if he doesn't pay more and pay the balance off. I'm new here, just got my scores last month. I have been reading a few posts here and there. Trying to learn as much as I can so I can stay on top of things for my finances. Everyone here is great and you all offer great information, thanks for that. I was very happy when I did get my scores: TransUnion: 713 Equifax: 754 & Experian: 753 The thing hurting me is short credit history. So time will help that. Thanks in advance!!

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[Anonymous]

check your partners credit report also

those scores are the best I seen in a long time

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SLP205 wrote:
cool thanks for the fast reply. I'm just trying to protect myself for the future when we get married Gotta keep on top of his stuff HA

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[Anonymous]

yes no new purchases is recommended

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@Anonymous wrote:
Also be aware if he uses the card for purchases = they will apply payments to the 0% APR not the new purchase- effectively killing the 0%

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@Anonymous wrote:
I have a question about the offers you get for 0% interest for 12 months. I haven't taken advantage of any, but my boyfriend got a cc with this and did a BT. I don't know the details, but I was wondering if you do a BT onto that card and you don't get that paid off in the 12 months at 0%, do they charge you back interest? Like I said I don't know the details of the card, but I know on like a best buy store card this is the case. I just want to make him aware of this if he doesn't pay more and pay the balance off. I'm new here, just got my scores last month. I have been reading a few posts here and there. Trying to learn as much as I can so I can stay on top of things for my finances. Everyone here is great and you all offer great information, thanks for that. I was very happy when I did get my scores: TransUnion: 713 Equifax: 754 & Experian: 753 The thing hurting me is short credit history. So time will help that. Thanks in advance!!

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[Anonymous]

I know this isn't what OP was asking about, but just wanted to point out that on the subject of retroactive interest, virtually all offers of 0% on purchases on store cards do charge interest retroactively from the purchase date if the balance isn't PIF by the end of the promotional period.

GEMB Care Credit works this way, as well.

Message Edited by cheddar on 12-01-2007 11:08 PM

[RobertEG]

Yes, a BT can be very good, providing you know the game, and add up all the charges against the bennies.  Most BTs charge you an immediate fee of 3% of the BT amount, so it is instant money in their pocket, and most BT rates only extend for six months, after which the default rate then prevails (not retroactive, but still there for balances at time of the expiration of the BT rate).  And also remember that most BTs generate a hard inquiry before granting, which willl result in a 5-10 point hit on your credit score.  And, if the BT is made to a card witha lower credit limit, it can result in an immediate higher %util on that card as compared with the %util on the other card, which will hurt your credit score in the short term, since FICO looks, not only at overall %util, but %util of each indiv. card.   Is your credit score within the next six months important? (i.e., will you be seeking new credit soon?)  Credit score impact  and interest/fees paid from pocket over the term must be evaluated.  Also, has been pointed out, any payments made after the BT date are not applied to new purchases made, but rather to the lower interst rate BT balance, which means you will be hit with the card default rate for all purchase balances until the BT is paid off.  Lots to consider!!

So, they get the immediate 3%, and are betting that you will shift everyday usage to their card, and that you will hopefully not pay off the BT amount within the lower rate period.  If their statistics did not show that, for the most part, it put more money in their pockets, you can bet that these BT offers would not be flooding our mailboxes every month.  You must know the game,  add up the pros and cons, and try to beat them in their game.  Most consumers clearly dont.  They only see next month, and not six months from the BT.  

BT transfer offers, like other credit offers, are based on averages.  The credit card companies  know the averages.  People like you who read this excellent forum are not average consumers, and can beat their averaging game. 

Message Edited by RobertEG on 12-02-2007 03:03 AM

Message Edited by RobertEG on 12-02-2007 03:17 AM

[haulingthescoreup]

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@Anonymous wrote:
I know this isn't what OP was asking about, but just wanted to point out that on the subject of retroactive interest, virtually all offers of 0% on purchases on store cards do charge interest retroactively from the purchase date if the balance isn't PIF by the end of the promotional period.

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Thank you, cheddar, I didn't realize that!

I will add another Post-It note to my overloaded brain...