Posted on: 29-08-10 15:37:42
hi folks,
I got some cheques from Sears master card finance and offering 1.99% for 6 month. In terms they say fee 1% of the cash advance amount.
My question is have any one used this type of loan/cash advance ?
I want to use for 2 month only please suggest.
Thanks,
Derry
Keep in mind that interest starts applying from the day you use the cheque.
It is usually compounded monthly as well.
Also, any payments made to the account might get applied to purchases before cash, thereby maximizing the interest charged by the credit card.
Read the full terms and conditions before using.
You can use these, of course, but you have to be aware of all costs involved.
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Quote:
Originally posted by pratickm
Keep in mind that interest starts applying from the day you use the cheque.
It is usually compounded monthly as well.
Also, any payments made to the account might get applied to purchases before cash, thereby maximizing the interest charged by the credit card.
Read the full terms and conditions before using.
You can use these, of course, but you have to be aware of all costs involved.
That rule has changes effective sep 1, 2010. Any payment will be applied first on items carrying higher rate.
Quote:
Originally posted by ashedfc
What happens after 6 months (I mean what is the normal rate).
What is the minimum monthly payment they are asking.
Its nothing unique, as 0.99% interest rate are also available.
Using it for short term is OK, but the problem is people get stuck with the balance, & end up paying much larger in interest. Its an addiction - you would like to avoid in the first place.
I have used this one. Be cautious check every monthly billing I had to called them thrice they send me bills charging 19.99% interest rate for consecutively 3 months every time I had to call them and changed the rate to 1.99%.
Other thing is that you have to pay full amount within 6 months if by mistake you dont pay full than after six month the interest rate would be more like 19 or 25% for the FULL TERM. This is a trap. So as per the earlier post go through the terms and condition and make sure every thing by calling b4 using this.
