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How not to pay interest after the intro APR expiration date?

Paranoid
Contributor

How not to pay interest after the intro APR expiration date?

I have the promo APR expiration date on my Discover card on December 10, 2019. The last 2 months I’ve been carrying the balance. As I understand, now I have no grace period since one of the statements was not paid in full. The goal is to pay nothing of interest after December 10. If I pay the balance to zero before December 10, 2019, will I have a grace period again right after this? Or do I need to pay off the balance to zero by November 10, and then by December 10?

 

I am asking because I found the information that in order to stop paying residual interest, you need to fully pay statements for two months in a row. Or it is about paying statements in full but not to zero? Could someone explain this point in more detail please?

BoA CR (2), CITI DC, Chase FF, AmEx BCE, Discover It, UMB SR, USB C+, CO WMT, Synch TJX, TD TGT, CITI CC
Message 1 of 22
21 REPLIES 21
NRB525
Super Contributor

Re: How not to pay interest after the intro APR expiration date?

Your 0% interest period runs to December 10. Technically, you are correct that you are no longer in a "grace period", and technically Discover is charging you interest on the balances, as we speak. Interest of $0.00 to be exact.

 

The course of action you want to take is to time your payoff so that the card goes completely to zero by about December 8. This includes not introducing new charges, or including recent charges in that Paid to Zero on or about December 8.

 

Then let the account sit until the statement prints. Check that to see if any residual interest appears. If you've paid to zero by December 8, the answer should be no residual interest. If there is residual interest, it will likely be a very small amount. Pay it immediately to squash it.

 

Once that statement prints, then you are off and running with a new grace period timing.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
Message 2 of 22
Paranoid
Contributor

Re: How not to pay interest after the intro APR expiration date?

Thank you, but to understand better, can I clarify? Let us suppose I have no introductory APR now.

 

The question is how to stop the accrual of interest and return the grace period.

 

PS. Ma actual cut date and promo APR expiration date are Dec 10th.

BoA CR (2), CITI DC, Chase FF, AmEx BCE, Discover It, UMB SR, USB C+, CO WMT, Synch TJX, TD TGT, CITI CC
Message 3 of 22
Remedios
Moderator

Re: How not to pay interest after the intro APR expiration date?

OP, do you currently have 0% APR promo?
If you do, you are not accruing interest right now whether you paid in full or not.

Interest will be assessed on any charges made after promo expires, or if you do not PIF the amount on the last statement before promo expires.
Message 4 of 22
AverageJoesCredit
Mega Contributor

Re: How not to pay interest after the intro APR expiration date?

My head hurts😥
Message 5 of 22
Saeren
Mega Contributor

Re: How not to pay interest after the intro APR expiration date?

I actually don’t think the grace period applies when you’re on a 0% intro specifically because if it was, you would run into the exact situation I think you’re describing where you pay your statement balance to take care of what you carried for the 0% promo but then get hit with interest charges immediately for not taking the card to $0 to reset the grace period you lost months ago.

Am I understanding the issue?




Message 6 of 22
NRB525
Super Contributor

Re: How not to pay interest after the intro APR expiration date?

Once you don’t pay an entire statement balance by the payment due date you have lost the grace period. You begin to be charged interest on all balances from that day forward. Existing balances, and new charges. All of it. During a promo period the only difference is you are charged $0 of interest but you are still being charged interest.

In order to get the grace period back, you need to bring the actual card balance to zero. In some banks, you may have to do this twice, across Statement periods, due to trailing interest.

Bring the card balance to completely zero just before your promo APR expires, for best results. And that means no use of the card after that, until you are certain no trailing interest appears.
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
Message 7 of 22
lpavelchak0204
Regular Contributor

Re: How not to pay interest after the intro APR expiration date?

Greetings!

 

I got my Disco in Jan 2017 and my 0% apr expired in Jan 2018. I was concerned about this because I thought the apr was kind of high in comparison to my other cards. SO, I called them to get an apr reduction AND they offered me 0% for another year.

Nov 2019 EX 780, TU 760 EQ 752, June 2019 EX 778, TU 788, EQ 790 April 2019 FICO EX 802, TU 790, EQ 804, Oct 2018 Fico'd EX 817, TU 811, EQ 798
June 2018 Fico's EX 830, TU 817, EQ 824
PenFed Power Cash Rewards $17K (Jan 2018), Discover IT $20.5k(Jan 2018), Capital One $7500 (Aug 2014), Chase Freedom (PC from FU Jan 2019) $4500 (Jan 2018), Sam's Club MC$10000 (Jan 2018), BBVA $25K (Apr 2018) ,WF Propel 15.5k(Jul 2018), USB Cash+ $14K(Jul 2018), Citi Best Buy Visa Platinum $12k(Sept 2018) Digital Federal Credit Union $15k (Nov 2018) BBVA Compass ClearPoints $8100 (June 2019) Williams Sonoma Visa Comenity $2300 (July 2019) Discover it 2 $4.5k (Nov 2019)

Campus USA CU Auto Loan 85k (Aug 2018) BBVA Compass Express Loan $15k (Nov 2018), PenFed personal Loan $27k
Rebuilder Cards: First Permier $1250 closed (6/11/18), FNBO $2600( Nov 2006)

AAoA 2.8 years UT 8%
Store Cards: HomeDepot $12000(May 1998), Saks $800(Oct 1978) Kohl's $2.5k (Nov 2018) AMZN Store Card $8.5K (Jan 2019) Target RedCard &2.5k (Apr 2019) Walmart MC $4k (Sept 2019)
Message 8 of 22
NRB525
Super Contributor

Re: How not to pay interest after the intro APR expiration date?


@Remedios wrote:
OP, do you currently have 0% APR promo?
If you do, you are not accruing interest right now whether you paid in full or not.

Interest will be assessed on any charges made after promo expires, or if you do not PIF the amount on the last statement before promo expires.

This wording could be improved Smiley Happy

The interest begins being assessed on existing balances, as well as new charges, not just any new charges after the promo period.

 

And, in fact the OP is accruing interest, is being charged interest right now during the promo period. It is just at a 0% rate resulting in a $0 interest cost.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
Message 9 of 22
Remedios
Moderator

Re: How not to pay interest after the intro APR expiration date?


@NRB525 wrote:

@Remedios wrote:
OP, do you currently have 0% APR promo?
If you do, you are not accruing interest right now whether you paid in full or not.

Interest will be assessed on any charges made after promo expires, or if you do not PIF the amount on the last statement before promo expires.

This wording could be improved Smiley Happy

The interest begins being assessed on existing balances, as well as new charges, not just any new charges after the promo period.

 

And, in fact the OP is accruing interest, is being charged interest right now during the promo period. It is just at a 0% rate resulting in a $0 interest cost.


😒

 

 

Message 10 of 22
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