Is it 0% or 35%?

[Anonymous]

I did a balance transfer promo (offer 4) with a zero APR until next year. I was carrying a zero balance on this citicard prior to the BT.

Now, I got my statement and it says the following. Can someone explain the 35%?

Periodic rate: 0%

Nominal APR: 0%

Annual percentage rate: 35.99%

[Anonymous]

I also need to add that I called citibank and they said yes, the promo is for 0 percent but the 35% is only a "hypothetical" interest rate. WHAT???

I have never had a late with them and my purchase apr is only 15% while cash apr is 22% so not sure why all of a sudden a BT resulted on a 35% rate.

[Anonymous]

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trashyart2000 wrote:

I did a balance transfer promo (offer 4) with a zero APR until next year. I was carrying a zero balance on this citicard prior to the BT.

Now, I got my statement and it says the following. Can someone explain the 35%?

Periodic rate: 0%

Nominal APR: 0%

Annual percentage rate: 35.99%

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The periodic rate is the daily rate that is applied to your average daily balance to calculate the nominal APR, which is the annual rate you will be charged on the current balance and new purchases.  The other figure is probably the ACTUAL rate you paid for this month, based on actual finance charges divided by your balance.

Did you pay a 3% BT fee?

If so then this makes sense: 3% this month * 12  months = 36%

[Anonymous]

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trashyart2000 wrote:

I also need to add that I called citibank and they said yes, the promo is for 0 percent but the 35% is only a "hypothetical" interest rate. WHAT???

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OK, that confirms my theory above then.  It's "hypothetical" in the sense that it's not a stated rate on your account.  In this particular month, however, that is the rate you ended up paying, most likely due to a BT fee.

[Anonymous]

Yes, you are right, I had to pay 3% for the BT. It now all makes sense. Thanks Cheddar!

[Anonymous]

Happy to help!