credit card language questions

[ensho]

what is a "promotional rate" and what is "non-introductory Purchase APR" (APR -Annual Percentage Rate)?


they are going to raise my credit card interest by 17.9 or 14.65 next yr., I think. maybe its both 17.9 14.65 added together.

[lldu]

1. Sounds like my letter from Capit alone......NT

[ensho]

3. yeah

nt

[serrano2008]

2. did you sign up for the card with special interest rates?

If you signed up for the card with a promotional rate of 0% balance transfer for 1 year or 0% on purchases for 1 year - those are both examples of "promotional rates"

"non-introductory Purchase APR" would be purchases made AFTER the promotional rate expired.

I think.

[ensho]

4. had the card for yrs.

never late, never large bill, always overpaid.

but twice down thru the yrs. renegotiated the interest when I noticed it going up. they probably don't like doing that.

[serrano2008]

5. that could be "promotional"

If you renegotiated, that new interest rate may be labaled "promotional" as they may have had to punch it into the system like that.

Sounds like when you wanted to renegotiate, the way they do this is to punch it into the system as promotional as an introductory rate. So anything listed under that rate would fall under that category. Everything else would fall under the "non-introductory" rate.

I know you don't want to hear this, but it may be best to call them and ask to speak to a supervisor to get it cleared up. Especially if you have balances falling under each different category, they'll be best to help you rather than us. I'm just using my experience as a credit card user in the past.

[ensho]

6. thank you, I shall do that

what you said makes sense

[Warpy]

7. Translation: you are screwed, sort of

The "promotional rate" is that teaser rate they sucked you in on. It's now a thing of the past. Your interest on the balance will be raised to 14.65%, which is actually not bad for an unsecured debt. Your balance on any new purchases will be 17.9% and anything you put on that card will be charged that new interest rate. Any payment will be applied to the existing balance at the lower rate. Any new purchase will be put on top of that balance and charged the higher rate.

That means that anything you put on that credit card, from a drink out of a machine to a trip to Aruba will become part of the existing balance but at a higher interest rate. Paying the card down will pay off the cheaper debt first.

To put it into perspective, credit cards used to charge 18 3/4% interest, period, with no junk fees and no minimum payments. That 17.9% interest rate really isn't that bad unless you add junk fees to it.

The problem is that if you are late on a payment, the rate will shoot up as far as 39% (the record so far) on both old and new balances.

If you are carrying a balance, pay that sucker off. Don't use that card for any new purchases and keep it for emergencies.

[ensho]

8. yep, will use checks and snail mail where possible

only have the one card for pc use/emerg.

thanks for laying it all out.