Understanding 0% APR with Equal Payments - Video

Transcript: Understanding 0% APR with Equal Payments Video

Every now and then, I've used special financing to cover a big purchase.

Taking advantage of a credit card that offered zero percent APR financing made sense.

I've applied, been approved, and completed my purchase on the same day, plus the payment options were surprisingly reasonable.

Not only did I get the funds that I needed to make the purchase, but I could avoid borrowing costs by sticking to the payment schedule.

First, I had to make sure I could afford the monthly payments.

By taking the amount I wanted to borrow and dividing it by the number of months in the promotional period - in my case, 36 months - meant that my monthly payment would be $100.

That's an amount I could afford, so I applied.

Once you commit, you must make payments in full, every month until the balance is 100% repaid.

And keep in mind that you can pay off your balance at anytime without penalty.

My credit card came in the mail about a week after being approved and making the purchase.

When my monthly billing statement arrived, it reflected what I had borrowed and the available credit left on my credit line.

What happens if you don't make payments on time? Well, if you pay late or fail to make the full payment, you will get charged a late fee.

Plus, the regular interest rate will be charged on any late fee that's not paid by the next payment due date.

So make sure you pay both the minimum amount due and any fees that are due on the account.

The take-away? Pay in full, on time every time to avoid a late fee.

Signing up for automatic payments through Wells Fargo Online can help you avoid missing a payment or paying late.

And you can always pay by phone, online, or through the mail.

Use your billing statements to check your progress and avoid surprises.

You can continue to use your available credit to make new purchases with your card.

Be sure to ask about current financing promotions available.

Purchases made with your card will be at the regular rate unless special financing terms are available.

When making financial decisions, it's always good to be informed.

Thank you for making time to learn how a 0% APR promotion works.