Questions about 0% APR from BOA

[Anonymous]

Hi,

I have been using Bank of America Cash Rewards credit card for quite a while but never use the promotional 0% Puchase APR that I got when open the account. I always paid in full and on time. However, I'm thinking on using the card to pay for my upcoming trips but I'm not quite sure about the rules of this promotion. It's quite confusing. 

1. It states on the card agreement that "If you revolve your balance to take advantage of a Promotional or Introductory offer, all transactions and balances, including purchases, will be charged interest". What does it mean?

2. From my understanding, if I would like to get 0% interest, all purchases have to be charged in the same billing period, I have to pay a minimum due before the due date every month and I must not use the card to make any new purchase after the billing end date untill I pay off the balance. Am I correct?

3. Can I still start to use this promotion given that I have already used the card for 3-4 months now and never use this promotion before? The promotional period has not ended yet.

4. After using this promotion, finish pay off the balance and there's still a few months left before promotional period ends, can I start to use it again (make big purchase and not pay in full until promotional period ends)?

5. For example, if use this offer and have remaining balance at $100. The due date is May 15 and the billing cycle end date for current cycle is Apr 30. Can I pay off the balance and make a new purchase today? Will I have to wait until the end date or until the due date or until the payment has been posted in order not to lose the grace period and get charged the interest?

Thank you so much!!

[Appleman]

If they offered you a 0% promotional period, say 12 months, you can cary a balance at 0% for the 12 months. Leave a balance pay it off, will not make a difference.

It is different if the car offers a 0% BT offer with no promotional APR. At that point you need to look at the language on the card but you would not want to use that card for purchases and the BT. In the first example you could use BT and promotional interest as they would be the same 0%.

1. How long is you 0% promotional offer for?

[pipeguy]

What it is saying is that your BT will be at 0% for 12 months (3% up front charge I believe) but any additional charges on the card or previous balance will continue to be charged your standard APR rate. 

Example" $10k card limit, you BT $5k with a 3% fee ($150) = BT amount $5150. Now over the next couple of months you charge $2500 on the card. Up until 12 months the $5k will be at 0% APR but the balance with be at 19.45% (or whatever it is). At the 12 month point you still have $3000 unpaid from the BT and $1500 unpaid from daily spending, now its 19.45% on the total $5000 balance. 

The key to BT's even if you are willing to pay the up front fee (some cards offer no fee, especially on intro-promotional offers) is you MUST zero out the balance before the end of the promotional period say 12 months or then it gets expensive.

[Anonymous]

Hi,

I'm sorry I forgot to mention that I got both 0% Purchase APR and 0% Balance Transfer APR offer for 14 months and what I focus here is the 0% Purchase APR not the balance transfer. Sorry for the confusion! I already edited the post. Thanks

[CreditInspired]

OP, you are good. Since both purchases and BT are at 0% interest for 14 months, you are only required to pay the minimum monthly payment. But make sure any and all BT and/or purchases are paid in full by month 13 (before the promo expires) to ensure you're not charge any interest.

[Anonymous]

BOFA calculates interest regardless of promotion. The promotion just dictates at what rate they charge. They still go through the motions, but the rate is 0% so they charge you the interest aquired of $0.

[NRB525]

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@Anonymous wrote:
BOFA calculates interest regardless of promotion. The promotion just dictates at what rate they charge. They still go through the motions, but the rate is 0% so they charge you the interest aquired of $0.

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