topic Re: Amex "Interest Charge on Promotional Balances" in Credit Cards

Amex "Interest Charge on Promotional Balances"

mindaugas — Sat, 02 Jul 2016 17:50:35 GMT

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.

Re: Amex "Interest Charge on Promotional Balances"

daybreakgonesXe — Sat, 02 Jul 2016 17:55:34 GMT

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.

Re: Amex "Interest Charge on Promotional Balances"

mindaugas — Sat, 02 Jul 2016 18:06:33 GMT

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?

Re: Amex "Interest Charge on Promotional Balances"

RonM21 — Sat, 02 Jul 2016 18:09:06 GMT

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

Re: Amex "Interest Charge on Promotional Balances"

daybreakgonesXe — Sat, 02 Jul 2016 18:11:29 GMT

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.

Re: Amex "Interest Charge on Promotional Balances"

mindaugas — Sat, 02 Jul 2016 18:14:47 GMT

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

Re: Amex "Interest Charge on Promotional Balances"

daybreakgonesXe — Sat, 02 Jul 2016 18:24:41 GMT

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!