End of 0% apr on card

[red259]

Here is a question that is really simple, but I just wanted clarification on. Let's say you make a 10k purchase on a 0% apr card in December while the card is still under that offer. In Jan when the interest rate kicks in, assuming you have no new spend, does the interest get assessed to the balance from the purchases made during the 0% apr or does the new apr only apply to purchases made after the 0% apr term ended? My guess would be the interest applies to whatever the current balance is, but I thought I would ask to be sure. 

[Anonymous]

That's correct. Once the promo period is over, the entire balance is subject to interest

[Anonymous]

Yes if you look on your statement where it shows how much you will owe if you only make the minimum payment, it will include interest for the months where the 0% APR ends.

[red259]

---

@Anonymous wrote:
That's correct. Once the promo period is over, the entire balance is subject to interest

---

Yea. I figured that was the case, but one can hope. I need to work on getting these 0% apr balances down over the next few months. I guess if I get jammed I could do a BT to cap 1 which keeps sending me offers but I don't want to pay the transfer fee. Actually with four months I should be able to knock these all down to zero. 

[red259]

---

@Anonymous wrote:

Yes if you look on your statement where it shows how much you will owe if you only make the minimum payment, it will include interest for the months where the 0% APR ends.

---

I'll take a look. I'm not about to start paying interest on cards though. Just evaluating my economic outlook so I can start figuring out where I need to apply payments and which cards I need to lay off using etc. 

[Ghoshida]

---

@red259 wrote:

Here is a question that is really simple, but I just wanted clarification on. Let's say you make a 10k purchase on a 0% apr card in December while the card is still under that offer. In Jan when the interest rate kicks in, assuming you have no new spend, does the interest get assessed to the balance from the purchases made during the 0% apr or does the new apr only apply to purchases made after the 0% apr term ended? My guess would be the interest applies to whatever the current balance is, but I thought I would ask to be sure. 

---

In short, the APR will impact the entire balance unpaid at the time of the calculation.

Even under 0% interest, if you check your statement you'll see a column that says "balance subject to interest" (Typically towards the end of the statement, where the rates are presented). For now, it'll say APR 0% but the balance subject to interest will be a positive number unless you've been paying in full.

When the APR becomes non-zero, it'll affect that entire balance as on that day.

[Anonymous]

Also, beware of store cards (mostly) that will charge retro interest if not paid in full within the promo period. AFAIK any major CC will just start accruing with the next statement cut or the date they say or whatever. But say you financed furniture or LASIK or something with a Synchrony card, they wouldn't charge you that one month's interest, they'd charge you interest at the non-promo rate for the last 24 months or whatever. 

[red259]

---

@Anonymous wrote:

Also, beware of store cards (mostly) that will charge retro interest if not paid in full within the promo period. AFAIK any major CC will just start accruing with the next statement cut or the date they say or whatever. But say you financed furniture or LASIK or something with a Synchrony card, they wouldn't charge you that one month's interest, they'd charge you interest at the non-promo rate for the last 24 months or whatever. 

---

That is messed up. I'm glad I don't have any store cards, 

[noobody]

TW is right, some dept store card charge interest from the day of purchase if you can not pay off the balance by the end of promotion period.
I am not aware any bank card doing this.
ALWAYS read the term!

[kdm31091]

While I agree it's kind of sneaky that store cards do this, they're store cards. Nobody should be carrying a balance on them. They are a tool to gain discounts at stores more or less. They are not ever a balance carrying tool. I wouldn't even do it with a promo rate. If you do have an emergency and need to carry a balance, you can't charge the emergency to the store card anyway!

As for major CCs, they don't typically do the "interest from date of purchase" thing after your 0% ends. Still, it's prudent to prioritize paying down the balances before the promo ends. As always, any interest you're paying eats up bonuses/rewards.