If i charge a credit card during the o.o% apr period does it charge interest on the unpaid balance?

Question

If i charge a credit card during the o.o% apr period does it charge interest on the unpaid balance?

Answer 1

If your 0% period has expired & you still have a balance, you will be charged interest. Best not to carry a balance.  

Answer 2

It depends.  Lets say you have a credit card that offers balance transfers at 0% for 12 months and purchases at the regular rate.   If you only transfer a balance, then you will not pay interest on that amount for 12 months. However, if you use that same card to purchase something, that will be at your purchase interest rate.

The bad thing is that all your payments will be applied to the amount subject to the 0% interest and the interest on your purchases will continue to accrue until you pay off the entire amount of the transferred balance.    Credit card companies always apply payments to the balance subject to the lowest interest.    

If you have a card that offers only balance transfers at 0%, the way to do it is simply put that card away after the transfer.   Divide the amount owed by 12 and pay that amount each month.  On the last month, send the payment in immediately after you get the bill. You do not want them saying they did not get the payment until after the 0% ended.   Do not make any purchases on that card until the entire amount transferred is paid off. That way you can avoid the "trap" of the 0% interest offer.