Balance Transfer for Credit Cards (2)
Balance Transfer repayments
Looking at the explanation above, you must think it's good to get an interest-free loan with a 2-3% fee on a 0APR credit card. However, if you do 0APR BT, be sure to note the following:
Every month you have to pay off the minimum due
Credit cards after DOING BT are best not to have new purchases
Pay off all the money in a bill before the end of BT's 0APR
Pay off the minimum due monthly
This is most important because the bank can disqualify you with 0APR at any time if you do not pay back the minimum repayment spent on your bank. It will also improve your BT original APR. If you can't afford these TBs, then 25%-30% of aPR is really the equivalent of usury. So, anyway, gritted your teeth and paid off the minimum due. Usually this minimum due is $25-$35, so it's still up if you don't forget to believe it.
Repayment of new consumption after Balance Transfer
My advice is that you do BT credit card not to spend, cut the card directly, pay off the minimum due every month. If you're not interested in understanding why, you can skip the explanation below.
First of all, the new consumption after BT is not Grace Period (because you have been working on the statement balance during bt period, so the new consumption starts calculating interest immediately on the day of the post, and the interest rate on the interest rate is Purchase APR. So if you have a BT offer of 0APR but don't have a purchase APR of 0, that's sad. Second, if the new consumption of APR is not 0, repayment is also very cumbersome. You can't just pay back the minimum due, you have to pay back the new money right away. Suppose you don't pay it off right away, and wait until the bill is paid, you'll need to pay back the money: the full amount of the new purchase and the interest generated by the new purchase. This will ensure that your new spending is fully paid off and will not continue to make profits. Here's why:
Most banks have a minimum due repayment on the lowest APR, where your BT has the lowest APR (0), so you just pay back the balance portion of the BT. So just the minimum, your new purchase has not been paid off, and will continue to follow Purchase APR roll interest. And repayments above the minimum will work on your highest APR, when your highest APR is purchase APR, so your portion of the repayment will cover the full amount of new consumption and the interest generated by the new consumption.
In short, remember: it's best not to spend on the card after BT, and in case you spend it, it's best to pay off the full amount of the minimum-new consumption and interest immediately.
Pay off the bill before the end of BT's 0APR
The general deadline for this 0APR's offer is not the same as the billing closing time. So, if you haven't paid off all your arrears after the 0APR deadline, the interest will start to be calculated (it will only be shown to you when the bill is paid). And the interest is scary, the amount you owe is your balance, and the amount owed is the end of the day from the first day of your BT. Assuming you have $1000 that hasn't been paid off, and BT's normal APR is 20%, you'll have to pay $400 more. So you are sure to pay off the bill completely before the 0APR offer deadline.
