Just got this in the mail the other day. Trying to figure out what I am missing here.
Back story- I have had this credit card since the early '90s. I have always paid off the balance on it, except for a stint during the recession in'08 when I was laid off work. There was a big bump in interest when the Credit Card Accountability Responsibility and Disclosure Act of 2009 went into effect, but that part never mattered to, because I have always paid off my card each month and never carried a balance.
But with the debt from our dog's surgery a road trip to pick up a vehicle I am flipping, and a desire to pick up some more stock for my eBay business, this looks like I shouldn't have to pay interest on my fuel, lodging, and resale stock for the next year, as long as I pay the minimum and pay the rest of the balance off before the end of July 2024. (My plan is to pay off well before then with a couple vehicle sales that are in the works.
But then the fine print...
Particularly bullet points #3 and #4
Can someone shed some light on this?
*Yes, I know the main reason they sent this is that they hope to put me in a trick bag where I am carrying a balance that I am not able to pay off, since they haven't pulled any interest payments out of me in over a decade. I just want to make sure they aren't able to stick it to me in the next 10 months as ling as I pay the minimum balance each month.
Its Vegas baby!
You think you can win and get a free ride at 0%
Their experience tells them that they will win more than they loose. Zero is only offered to customers in good standing. Late on a payment and interest is no longer zero.
They also encourage purchasing at this zero and in a year that zero turns profit!
Bullet 3 seems to indicate if you are already carrying a balance or make "excluded" charges that have a lower interest rates than you would be charged on the promotional balance for failing to pay it all off before the promotion ends, they will apply your minimum required payment amount to the lowest interest rate so they can screw you harder if you don't pay off all the promotional balance by the end of the promotional period.
Bullet 4 seems to indicate that you must pay off some portion of your new monthly charges which will be identified on your bill as your New Balance (probably any new purchases that are excluded from the promotion, but I'm not certain of that). But they will try to screw you over with Bullet 3 by applying your minimum payment to other charges. So you really need to pay the New Balance + the minimum payment each month before the due date.
In reply to secretariata (Forum Supporter) :
Thank you. That is kinda how I read it.
I guess I can just accept the offer, and see how it plays out. Worst case, I just pay off the card every month the way I have for decades.
Nothing to add except I thought Sears and Kmart were gone
2 Kmarts in Florida, and one on Long Island. (?)
17 Sears stores, IIRC, but they have their name on other holdings.
Regardless, my card is through CitiBank.
The fourth "New Balance" bullet is the one that gives me pause. I just can't work out exactly what that means.
Bullet three, in my experience, means that if you already have a balance that you're carrying month over month, that is being charged interest, they may take your minimum monthly payment and apply it to that balance, which leaves you not paying down your 0% balance at the rate you thought. Sounds like that wouldn't be a concern here.
I'm only interested in using cards that give a defined cash back on all purchases.
z31maniac said:
I'm only interested in using cards that give a defined cash back on all purchases.
We have two cards that have cash back/travel points in different spending categories that like 75% of our expenses go on each month, and they're both set to autopay the full statement balance each month. To me, it's free money.
Spearfishin said:
z31maniac said:
I'm only interested in using cards that give a defined cash back on all purchases.
We have two cards that have cash back/travel points in different spending categories that like 75% of our expenses go on each month, and they're both set to autopay the full statement balance each month. To me, it's free money.
Exactly. All groceries, gas, vehicle insurance, going out to eat, booze/beer, and 3 out of 4 utilities all go to our Chase Sapphire.
There is a Wells Fargo card that has better cash back rewards, but I don't want to apply for another card. I've had the Chase card for 15+ years and currently go buy a new Miata with it based on the limit. Of course I wouldn't do that, just an illustration of the limit on the card we use all the time.
