when you do a cc balance transfer, do you have monthly min. payments?

[abc]

i never did a cc: balance transfer...

so you got one of those offers, zero transfer fee, zero apr for 12months...


say you transfer 1k...

for ea. month from now to the 12th monthwhen the 1k is all due lump sum, do you pay minimum payments ? say 20bucks each month?

so in month 12, you have paid say 11x20 = 220 - 1k = 780.00 lum sum to be paid back.. is this how it works?

 

[Saulbadguy]

You must make a minimum payment, unless it states otherwise.

 

[Mermaidman]

It will vary--You have to read the fine print. Generally, you will have to make minimum monthly payments. At the end of the promotional period, you DON'T have to pay the remainder of the principal, BUT you will start accruing interest, which is what the bank wants 😀

So best bet is to plan to be able to pay off the entire amount by the end of the promotional period.

 

[dc]

or transfer to another 0% APR promotion. 🙂

 

[CTrain]

Originally posted by: abc
i never did a cc: balance transfer...

so you got one of those offers, zero transfer fee, zero apr for 12months...


say you transfer 1k...

for ea. month from now to the 12th monthwhen the 1k is all due lump sum, do you pay minimum payments ? say 20bucks each month?

so in month 12, you have paid say 11x20 = 220 - 1k = 780.00 lum sum to be paid back.. is this how it works?

Pretty much how it works.
These companies are EVIL, some people don't know about the minimum and when they don't make the payment, the rate is go back to the default rate....bye bye 0% interest.
Also, sometimes they charge you a signifigant balance transfer fee for the 0% promotion.
EVIL.

 

[mugs]

Originally posted by: dc
or transfer to another 0% APR promotion. 🙂

I'm not an expert, but I don't imagine doing that over and over again would be good for your credit score.

Also, if you get a credit card to transfer a balance to, don't use it to buy anything else. Your monthly payments are automatically applied to the money that was loaned at the lowest interest rate, so if you put $200 a month on the credit card and pay it off each month, by the end of 5 months you'll have $1000 at 15% interest or whatever instead of 0% interest.

 

[dc]

yeah, sneaky cc companies. heh.