Cost $11.93 --> One hidden fact of credit card Intro %

[davlat]

I felt like stupid. I cost $11.93 on credit card interest while I am avoiding. Anyway I gain some knowledge at that cost and I would like to share with you all..

*** Intro APR & normal APR are calculated differently ***

Following is example story.... (I won't play with CC anymore )

-I carried balance 'cuz it was 0% APR. Statement cycle (15th of a month)
-I end my Intro 0% APR on Jan 31 while I had balance $1000 for last (Dec 15~Jan 15) month. So I thought that if I pay all my balance after Feb statement $1300(Jan 15~Feb 15), there should be no interest charge...
WRONG !!!!!!!!!!!!!!!!!

-While the Intro end, they check the last statement balance (Dec~Jan) and they found $1000. So the interest start ticking since Jan 31 on that amount (last balance amount). But they are right that they don't charge interest on (Jan~Feb) statement purchases ($300).

*** So my friends, please remember that they want to end the intro % in the middle of statement so they can charge the interest while you have no knowledge where it starts if you don't careful about your Intro ending date ****

***Rule of thumb*** Write down Intro end date on the card...

I am lucky that I got that knowledge at the cost of $4 because I put $ at savings so that the balance that I did not pay generate about $8. My CC charged me $12 so I lost about $4.

I think my carelessness was the reason. But will average customers know that detail? Anyway I already accumulated $39 for cash back at them.
Don't expect any penny from me you CC companies...

[vsjhoc]

Thanks very much for posting. Don't beat yourself up; this is one of those super fine-print things that 99.9% of folks wouldn't get.

The moral of the story is to know the exact date when your intro rate ends, because it could end in the middle of a statement period rather than on the statement closing date.

[disneysteve]

Thanks for explaining that. I saw your post about it on another thread and was wondering what caused the charge. Very good advice to pay attention to when the introductory rate ends.

[Joan.of.the.Arch]

That's a good tip to write down on the card the end date (or intro date) of the 0% deal.

I have written in permanent ink which card to use for pharmacy and which for gasoline, as one is better than the other for cash-back rewards for each of these categories. I can never remember which is which.

Similarly, each time I recharge or spend down a Walgreens gift card via their free-with-rebate programs I write down the new balance in permanent ink. I remove the old number with rubbing alcohol. It leaves a ghost image, but is clean enough to write over.

[davlat]

Yeeeaaaaaah.........
Today I successfully paid all my CC balance. Only $5 balance left that I bought yesterday. Thank you all... It is amazing that you (Joan.of.the.Arch) actually write down the date. I should do it too.

I should thanks to AmtrustDirect for fast service. I paid electronically yesterday, it appears on my credit today. I had Citi online bank, AmtrustDirect bank and UFB direct bank. AmtrustDirect is the fastest (esp. Out, but they hold IN ) and Citi is the slowest I guess.

The funny thing is when I pay Citi Card from Citi bank, it takes longer than paying from AmtrustDirect.

[jasanderson]

Yeeeaaaaaah.........
The funny thing is when I pay Citi Card from Citi bank, it takes longer than paying from AmtrustDirect.

With Citibank you can actually schedule ahead of time what days you want your payments. They then post that day.

[jasanderson]

That's a good tip to write down on the card the end date (or intro date) of the 0% deal.

I have written in permanent ink which card to use for pharmacy and which for gasoline, as one is better than the other for cash-back rewards for each of these categories. I can never remember which is which.

Similarly, each time I recharge or spend down a Walgreens gift card via their free-with-rebate programs I write down the new balance in permanent ink. I remove the old number with rubbing alcohol. It leaves a ghost image, but is clean enough to write over.

If you have a labeler that works good too. Then you don't have to worry about messing up your card.

[davlat]

With Citibank you can actually schedule ahead of time what days you want your payments. They then post that day.

Thank.. I will try next time....

Btw. I think they charged more than what they say... They said they charged from Jan 31 to the statement date (Feb 18).. APR 13.99% (so AP-day APR/360=0.0388611%) .. The amount (around $1000)... So the daily compound interest should be 1000*((1+APD)^17-1)=$7.674 ........
However according to what they charged... $11.93 is around 21.7% ....

Is there anyone know how it works? Is anybody has experience that the interest is more than you calculate.

Thanks