0% interest on my new card, can you help clarify?

[JohnDaleswife]

Ok, so I noticed that my new Citi double cash card has a 0% interest rate on all purchases for the first 15 months. Does that mean that as long as I make the required payment on it and all us current that I wont get hit with any interest?

I always pay off my previous months balance, but with the deal on Travelocity, I could save myself some money on a booking with them as long as I wont get hit with any interest. Must book this weekend.

 

[Jen and Ashwin]

You must have paid off any balance before the expiration of the promotional offer. For example, we bought our DVC contract with our Capitol One Quicksilver card using wedding money. The card gave us 12 months no interest, so instead of paying off the balance right away we have put the money into a high interest checking account to gain a little bit on it and will pay the balance off by the end of January since our promotional balance ends in February.

 

[eliza61]

Jen and Ashwin has it right, just make sure you pay the balance off by the end of the promotion.

I use this type of promotion to but my new appliances, i didn't want to pull 7k out of my savings and paid them off within the period

 

[JohnDaleswife]

Ok, so its 15-months, so thats like December of next year. Ill pay it off in March of next year. So glad I looked into that card further. Will probably switch to the Boardwalk.

 

[Turk February]

It should also be mentioned that most, if not all, 0% interest promotions will charge you the entire interest amount (in your case 15 months) at the end of the promotional period at their normal rate if you have not payed your promotional balance off in full.

 

[supersnoop]

You folks are describing "deferred interest." You'll need to check the terms of the promotion to be certain if there is no interest, or if it is deferred.

 

[JohnDaleswife]

So watcha think?

 

[Albort]

i believe you still need to make minimum payment though. My dad thought the same where he can leave a balance on it for 15 month, but they shut his account down temporary due to no payment.

 

[Jen and Ashwin]

I should qualify that I do have to make minimum payments on the account so my account does not go into default. But the bulk of the money won't be paid off until right before the promotional period expires.

 

[JohnDaleswife]

Right. Well I would be making more than the minimum payment. Every thing owed but the Travelocity bill until I get my taxes. I went ahead and booked and shaved $200 off by total!

 

[georgina]

A random thought - I did this once, loaded up the card to near the balance for a year, and my insurance rates went up. (I paid it off before any interest was added.) I know some companies say they don't use your credit history to decide your rates, but I believe mine did.