Understanding No interest if paid in full - Video
Transcript: Understanding No interest if paid in full
Every now and then, I've used special financing to cover a big purchase.
Taking advantage of a credit card that offered No Interest if Paid in Full financing just made sense.
I've applied, been approved, and completed my purchase on the same day. Plus the payment options were surprisingly flexible.
I knew going into it that I'd start accruing interest the day I made my purchase.
But I also knew if I repaid my balance within the promotional period, I wouldn't have to pay the accrued interest.
I mean, why pay interest if you don't have to?
Just to be clear, you could have between six and twelve months to repay your balance depending on your terms.
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.
Each month, I could pay the minimum payment due on the statement.
But just paying the minimum each month will leave a large amount due at the end of the promotional period.
Knowing that minimum payments might not pay off the balance in time -- I took what I borrowed and divided it by the number of months in my promotional period.
If I paid this much every month -- barring additional purchases, I knew I would pay off the balance before the accrued interest is charged.
I made sure to pay on time every month.
Late or missed payments incur a late fee.
So what happens if you don't pay off the balance in time?
Well, things get expensive.
You're still responsible for the unpaid balance, and now you'll have to pay the interest that's been adding up since day one.
Take away: Pay off your balance in time to avoid interest.
Signing up for automatic payments through Wells Fargo Online can help you avoid missing a payment or paying late.
You can always pay by phone, online, or through the mail.
Use your monthly billing statements to check your progress and remaining promotional balance to avoid accrued interest charges.
Wells Fargo will send you reminders to help prepare for the end of the promotional period when interest will be added to your balance if it's not paid off in time.
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 No Interest if Paid in Full promotion works.