topic 0% APR, how do minimum payments work? in Credit Cards

0% APR, how do minimum payments work?

Jarrodpd — Mon, 27 Apr 2015 21:07:39 GMT

I have 0% apr on my Freedom for 15 months, how exactly does that work? I know that you have to pay or else you defualt and then pay a charge and a penatly APR, but how could I calculate the payment on say $200. Is there a minimum amount that would need to be payed regardless of amount carried?

Re: 0% APR, how do minimum payments work?

Anonymous — Mon, 27 Apr 2015 21:09:18 GMT

@Jarrodpd wrote:
I have 0% apr on my Freedom for 15 months, how exactly does that work? I know that you have to pay or else you defualt and then pay a charge and a penatly APR, but how could I calculate the payment on say $200. Is there a minimum amount that would need to be payed regardless of amount carried?

There still is a minimum payment regardless of your APR. they'll tell you what is on your statement.

Re: 0% APR, how do minimum payments work?

Anonymous — Mon, 27 Apr 2015 21:24:59 GMT

Likely on such a small balance, $25.

Re: 0% APR, how do minimum payments work?

Anonymous — Mon, 27 Apr 2015 21:34:16 GMT

It'll be $25 min with such a small balance

Re: 0% APR, how do minimum payments work?

Ghoshida — Mon, 27 Apr 2015 22:36:58 GMT

There is a minimum payment. It is prominently mentioned in your monthly statement. Check your statement for the exact number. Even a dollar less than the minimum payment, regardless of 0% APR might make your account reported to bureaus as late payment. This may also result in the lender jacking your rates to the penalty APR with immediate effect.

Another thing. Even if it is 0% APR, it is recommended that you make at least 3x minimum payment. Otherwise you could be viewed as a risky borrower by your lenders.

Re: 0% APR, how do minimum payments work?

Luscher — Mon, 27 Apr 2015 22:46:48 GMT

You MUST pay at least the minimum payment.

Re: 0% APR, how do minimum payments work?

kdm31091 — Mon, 27 Apr 2015 23:03:07 GMT

0 percent APR has no bearing on minimum payment. You won't accrue interest but you still have to pay something! It's preferable to pay more than the minimum or you'll appear risky like someone else mentioned.

Re: 0% APR, how do minimum payments work?

Jarrodpd — Mon, 27 Apr 2015 23:31:15 GMT

@Anonymous wrote:
Likely on such a small balance, $25.

Thanks I was looking for a ball park range. Carrying around 1300 would you estimate $80?

Re: 0% APR, how do minimum payments work?

Luscher — Mon, 27 Apr 2015 23:32:08 GMT

It all depends on the lender^^^^

Re: 0% APR, how do minimum payments work?

chalupaman — Mon, 27 Apr 2015 23:33:46 GMT

@Jarrodpd wrote:
I have 0% apr on my Freedom for 15 months, how exactly does that work? I know that you have to pay or else you defualt and then pay a charge and a penatly APR, but how could I calculate the payment on say $200. Is there a minimum amount that would need to be payed regardless of amount carried?

It will definitely be $25 a month. The bigger the balance, the bigger the minimum payment if you're heading towards the late 1000s-2000s range.

Re: 0% APR, how do minimum payments work?

Ghoshida — Tue, 28 Apr 2015 00:02:46 GMT

@Jarrodpd wrote:
@Anonymous wrote:
Likely on such a small balance, $25.
Thanks I was looking for a ball park range. Carrying around 1300 would you estimate $80?

Unlikely that high; it'll still be around $25-$35. Make sure you read the statement carefully before deciding on a payment. If it's $25-$35 I'd suggest to pay down at least $100. Also make sure that the balance isn't too high compared to your CL on the card. Typically 30% or lower is safe (not best, just safe).

Re: 0% APR, how do minimum payments work?

icyhot — Tue, 28 Apr 2015 00:06:02 GMT

It's normally $25 or 1% of your statement balance, whichever is largest