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Credit Terminology Halp

s0m31john
Posts: 1,879
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12/7/2008 2:45:24 PM
Posted: 7 years ago
You may have seen my computer thread in the Tech board, this is related to that.

I plan to buy my parts from Newegg and I want to use their Newegg.com Preferred Account, but there are some things I don't exactly understand.

With a purchase of over $500 it says you get no interest for 6 months.

Then it goes onto say:

Finance charges will accrue at an ANNUAL PERCENTAGE RATE of 21.99%. A minimum Finance Charge of $2.00 will apply.

So, here's a scenario.

I buy $800 on the account. In 6 months I manage to pay off $650. When is the APR calculated into by bill? Is 1.85% of my balance added onto my account each month (21.99 divided by 12) , or do they add on 21.99% of my balance every month? Or is it done some other way?

Here's the page where you can read the terms in more detail. I just want to understand it completely before I take the offer.

http://promotions.newegg.com...
askbob
Posts: 7,254
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12/7/2008 2:54:45 PM
Posted: 7 years ago
NOTICE TO BORROWER: (1) CAUTION - IT IS IMPORTANT THAT BORROWER THOROUGHLY READ THE DISCLOSURES AND AGREEMENT BEFORE BORROWER AGREES; (2) BORROWER SHOULD RETAIN A COPY OF THE DISCLOSURES AND AGREEMENT FOR BORROWER'S RECORDS.

Daily Periodic Rate and ANNUAL PERCENTAGE RATE for Standard Promotional, and Financed Installment Purchases The fixed Daily Periodic Rate is 0.06024%. This corresponds to an ANNUAL PERCENTAGE RATE of 21.99%.*

I think this means that the sooner you pay it off the less interest you will have to pay.

Ex. They'll calculate your interest daily by multiplying the daily periodic rate of .06024% by your principle owed. They'll do it every day until you've paid it off. If you pay the amount IN FULL within the six months then they'll forget about all the interest, if not then you'll have to pay the interest starting from the first day you buy the parts.
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I-am-a-panda
Posts: 15,380
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12/7/2008 2:56:55 PM
Posted: 7 years ago
At 12/7/2008 2:45:24 PM, s0m31john wrote:
You may have seen my computer thread in the Tech board, this is related to that.

I plan to buy my parts from Newegg and I want to use their Newegg.com Preferred Account, but there are some things I don't exactly understand.

With a purchase of over $500 it says you get no interest for 6 months.

Then it goes onto say:

Finance charges will accrue at an ANNUAL PERCENTAGE RATE of 21.99%. A minimum Finance Charge of $2.00 will apply.

So, here's a scenario.

I buy $800 on the account. In 6 months I manage to pay off $650. When is the APR calculated into by bill? Is 1.85% of my balance added onto my account each month (21.99 divided by 12) , or do they add on 21.99% of my balance every month? Or is it done some other way?

Here's the page where you can read the terms in more detail. I just want to understand it completely before I take the offer.

http://promotions.newegg.com...

The annual percentage rate is added annually, so if the rate is 21.9 %, and you loan 800, each year you have 175.2 dollars to pay off annually as long as it remains 800. If you 650 in 6 months, with 0% interest, then your left with 150 x 21.9 divided by 2 = 150 x 10.95 = 16.42 dollars added at the end of the year if you don't pay anything. If you pay it off in under a year, and they explicitly say annually (i.e. once a year) then you shouldn't pay any interest.

But that said, I really don't know if it's on a monthly or annual basis. You should inquire to the website.
Pizza. I have enormous respect for Pizza.
Ragnar_Rahl
Posts: 19,297
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12/7/2008 2:59:21 PM
Posted: 7 years ago
Typically APR is just written that way for your convenience, and they calculate it monthly in a way that it'll add up to the APR
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askbob
Posts: 7,254
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12/7/2008 3:00:32 PM
Posted: 7 years ago
Its on a daily basis not monthly or yearly
Me -Phil left the site in my charge. I have a recorded phone conversation to prove it.
kohai -If you're the owner, then do something useful like ip block him and get us away from juggle and on a dofferent host!
Me -haha you apparently don't know my history
Kohai - Maybe not, but that doesn't matter! You shoukd still listen to your community and quit being a tyrrant!
Me - i was being completely sarcastic
Kohai - then u misrepresented yourself by impersonating the owner—a violation of the tos
beem0r
Posts: 1,155
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12/7/2008 3:03:05 PM
Posted: 7 years ago
Looks like they compound daily, so your amount owed will be multiplied by
1.0006024 every day. So if you owed $150 when interest starts to kick in, it would add about 10 cents a day.
askbob
Posts: 7,254
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12/7/2008 3:04:16 PM
Posted: 7 years ago
* Daily Periodic Rate and Annual Percentage Rate (APR). The APR is not permanent. Lender may change it at any time, subject to the section of the Cardholder
Agreement called "Amendment of the Agreement."
Me -Phil left the site in my charge. I have a recorded phone conversation to prove it.
kohai -If you're the owner, then do something useful like ip block him and get us away from juggle and on a dofferent host!
Me -haha you apparently don't know my history
Kohai - Maybe not, but that doesn't matter! You shoukd still listen to your community and quit being a tyrrant!
Me - i was being completely sarcastic
Kohai - then u misrepresented yourself by impersonating the owner—a violation of the tos
Ragnar_Rahl
Posts: 19,297
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12/7/2008 3:06:29 PM
Posted: 7 years ago
so they can just say your interest is OVER 9000 anytime they want :D
It came to be at its height. It was commanded to command. It was a capital before its first stone was laid. It was a monument to the spirit of man.
askbob
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12/7/2008 3:07:43 PM
Posted: 7 years ago
Thats what its saying in the fine print. I'd just be sure as heck to get it paid before the 6 months if I was taking a loan.
Me -Phil left the site in my charge. I have a recorded phone conversation to prove it.
kohai -If you're the owner, then do something useful like ip block him and get us away from juggle and on a dofferent host!
Me -haha you apparently don't know my history
Kohai - Maybe not, but that doesn't matter! You shoukd still listen to your community and quit being a tyrrant!
Me - i was being completely sarcastic
Kohai - then u misrepresented yourself by impersonating the owner—a violation of the tos
beem0r
Posts: 1,155
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12/7/2008 3:09:34 PM
Posted: 7 years ago
At 12/7/2008 3:06:29 PM, Ragnar_Rahl wrote:
so they can just say your interest is OVER 9000 anytime they want :D
Not quite, since there are laws against outlandish interest rates.
Still, I'd recommend trying to get it all paid off by the 6-month deadline.
I-am-a-panda
Posts: 15,380
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12/7/2008 3:40:18 PM
Posted: 7 years ago
150 divided by 365 = 40 cents a day.
40 x 30 = 1200 or $12.00 a month
So you have to pay $12 monthly for every $150 you have loaned.
Pizza. I have enormous respect for Pizza.
Ragnar_Rahl
Posts: 19,297
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12/7/2008 3:44:24 PM
Posted: 7 years ago
At 12/7/2008 3:09:34 PM, beem0r wrote:
At 12/7/2008 3:06:29 PM, Ragnar_Rahl wrote:
so they can just say your interest is OVER 9000 anytime they want :D
Not quite, since there are laws against outlandish interest rates.

True, but John claims to be a libertarian, so probably best not to rely on a court to get him out of a contract :D
It came to be at its height. It was commanded to command. It was a capital before its first stone was laid. It was a monument to the spirit of man.
askbob
Posts: 7,254
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12/7/2008 5:02:21 PM
Posted: 7 years ago
Panda, you're wrong. Lol compounding daily =/= a simple math formula at least simple in the context you're defining.
Me -Phil left the site in my charge. I have a recorded phone conversation to prove it.
kohai -If you're the owner, then do something useful like ip block him and get us away from juggle and on a dofferent host!
Me -haha you apparently don't know my history
Kohai - Maybe not, but that doesn't matter! You shoukd still listen to your community and quit being a tyrrant!
Me - i was being completely sarcastic
Kohai - then u misrepresented yourself by impersonating the owner—a violation of the tos
SeventhProfessor
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7/20/2014 11:16:18 PM
Posted: 2 years ago
Super happy birthday Crypto!
#UnbanTheMadman

#StandWithBossy

#BetOnThett

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sadolite
Posts: 8,836
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7/26/2014 8:10:47 PM
Posted: 2 years ago
" If you pay the amount IN FULL within the six months then they'll forget about all the interest, if not then you'll have to pay the interest starting from the first day you buy the parts."

This is all you need to know about any no interest for X amount of months regardless of the amount you barrow or what the interest rate is. You are screwed if you miss a payment on introductory interest rates on credit cards also.
It's not your views that divide us, it's what you think my views should be that divides us.

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Khaos_Mage
Posts: 23,214
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7/26/2014 8:50:35 PM
Posted: 2 years ago
At 7/26/2014 8:10:47 PM, sadolite wrote:
" If you pay the amount IN FULL within the six months then they'll forget about all the interest, if not then you'll have to pay the interest starting from the first day you buy the parts."

This is all you need to know about any no interest for X amount of months regardless of the amount you barrow or what the interest rate is. You are screwed if you miss a payment on introductory interest rates on credit cards also.

You are correct, sir. That is usually the case of store cards.
True credit cards, I believe, will actually simply not charge for the time, and start afterwards.
It is always a good idea to know how it works.
For example, I just transferred a bunch of debt onto a paid of card, for 18 months 0% interest.
However, I have to pay 3% of the transferred amount in fees, and my minimum balance goes towards that credit first. So, if I buy an item for $100, that $100 will be charged interest for the entire 18 months, unless I pay $100 over the minimum.

Always understand how things work, especially with finances.
Think: how are they making money?
My work here is, finally, done.
LogicalLunatic
Posts: 1,633
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7/28/2014 8:48:59 PM
Posted: 2 years ago
At 12/7/2008 2:45:24 PM, s0m31john wrote:
You may have seen my computer thread in the Tech board, this is related to that.

I plan to buy my parts from Newegg and I want to use their Newegg.com Preferred Account, but there are some things I don't exactly understand.

With a purchase of over $500 it says you get no interest for 6 months.

Then it goes onto say:

Finance charges will accrue at an ANNUAL PERCENTAGE RATE of 21.99%. A minimum Finance Charge of $2.00 will apply.

So, here's a scenario.

I buy $800 on the account. In 6 months I manage to pay off $650. When is the APR calculated into by bill? Is 1.85% of my balance added onto my account each month (21.99 divided by 12) , or do they add on 21.99% of my balance every month? Or is it done some other way?

Here's the page where you can read the terms in more detail. I just want to understand it completely before I take the offer.

http://promotions.newegg.com...
A True Work of Art: http://www.debate.org...

Atheist Logic: http://www.debate.org...

Bulproof formally admits to being a troll (Post 16):
http://www.debate.org...
LogicalLunatic
Posts: 1,633
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7/28/2014 9:01:00 PM
Posted: 2 years ago
At 12/7/2008 2:45:24 PM, s0m31john wrote:
You may have seen my computer thread in the Tech board, this is related to that.

I plan to buy my parts from Newegg and I want to use their Newegg.com Preferred Account, but there are some things I don't exactly understand.

With a purchase of over $500 it says you get no interest for 6 months.

Then it goes onto say:

Finance charges will accrue at an ANNUAL PERCENTAGE RATE of 21.99%. A minimum Finance Charge of $2.00 will apply.

So, here's a scenario.

I buy $800 on the account. In 6 months I manage to pay off $650. When is the APR calculated into by bill? Is 1.85% of my balance added onto my account each month (21.99 divided by 12) , or do they add on 21.99% of my balance every month? Or is it done some other way?

Here's the page where you can read the terms in more detail. I just want to understand it completely before I take the offer.

http://promotions.newegg.com...
A True Work of Art: http://www.debate.org...

Atheist Logic: http://www.debate.org...

Bulproof formally admits to being a troll (Post 16):
http://www.debate.org...
LogicalLunatic
Posts: 1,633
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7/28/2014 9:16:30 PM
Posted: 2 years ago
At 12/7/2008 2:45:24 PM, s0m31john wrote:
You may have seen my computer thread in the Tech board, this is related to that.

I plan to buy my parts from Newegg and I want to use their Newegg.com Preferred Account, but there are some things I don't exactly understand.

With a purchase of over $500 it says you get no interest for 6 months.

Then it goes onto say:

Finance charges will accrue at an ANNUAL PERCENTAGE RATE of 21.99%. A minimum Finance Charge of $2.00 will apply.

So, here's a scenario.

I buy $800 on the account. In 6 months I manage to pay off $650. When is the APR calculated into by bill? Is 1.85% of my balance added onto my account each month (21.99 divided by 12) , or do they add on 21.99% of my balance every month? Or is it done some other way?

Here's the page where you can read the terms in more detail. I just want to understand it completely before I take the offer.

http://promotions.newegg.com...
A True Work of Art: http://www.debate.org...

Atheist Logic: http://www.debate.org...

Bulproof formally admits to being a troll (Post 16):
http://www.debate.org...
LogicalLunatic
Posts: 1,633
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7/28/2014 9:20:46 PM
Posted: 2 years ago
At 12/7/2008 2:45:24 PM, s0m31john wrote:
You may have seen my computer thread in the Tech board, this is related to that.

I plan to buy my parts from Newegg and I want to use their Newegg.com Preferred Account, but there are some things I don't exactly understand.

With a purchase of over $500 it says you get no interest for 6 months.

Then it goes onto say:

Finance charges will accrue at an ANNUAL PERCENTAGE RATE of 21.99%. A minimum Finance Charge of $2.00 will apply.

So, here's a scenario.

I buy $800 on the account. In 6 months I manage to pay off $650. When is the APR calculated into by bill? Is 1.85% of my balance added onto my account each month (21.99 divided by 12) , or do they add on 21.99% of my balance every month? Or is it done some other way?

Here's the page where you can read the terms in more detail. I just want to understand it completely before I take the offer.

http://promotions.newegg.com...
A True Work of Art: http://www.debate.org...

Atheist Logic: http://www.debate.org...

Bulproof formally admits to being a troll (Post 16):
http://www.debate.org...