“Amazon’s” Store Credit Card ‘6 Equal Monthly Payments’ (With 0% APR) Doesn’t Work Like You Would Expect; Quite Deceptive.

Leave a reply

by Anura Guruge
on January 6, 2023

Follow Anura Guruge on WordPress.com

Click to ENLARGE.

Simply put YOU will always end up paying more than you expect UNLESS every transaction on your statement consists of products bought on the ‘Equal Month Payment‘ scheme. IF you have any items that did NOT qualify you will end up paying more than you expected. NO, you are NOT paying more per se over the 6-months — it is just that your monthly payments are NOT equal or equitable.

It all has to do with what credit cards deem PROMOTIONAL & NON-PROMOTIONAL items (i.e., purchases). The 0% APR, Equal Monthly Pay is a Promotional Item. So, yes, they do divide the price by 6 BUT you will invariably end up paying more … It is complicated. So, complicated that even they stumble over the explantion.

IF YOU only pay the MINIMUM BALANCE each month then you are all set. The equal monthly payment scheme will be fair to you, but if you have Non-Promotional items in there too you are of course going to be paying interest. That is what they want.

IF you like to pay off your entire statement balance each month — then you get screwed!

Why, because they don’t just let you pay for ALL the Non-Promotional items PLUS 1/6 of the price for Promotional.

Instead, you have to pay for ALL the Non-Promotional items PLUS the Minimum Payment! That is the catch. The Minimum includes monies to pay some of the Non-Promotional items — which you are going to pay in full! Get that. That is the catch.

Here is a simple example:
** You have $500 of Non-Promotional items
** A $240 item you bought on 6 monthly payments (at 0% APR).

You want to pay off ALL the Non-Promotional (i.e., $500) + 1/6 of the $240.

1/6 of $240 would come to $40 a month.

So, you would think what you would have to pay is $540. WRONG. Dead Wrong.
That is the catch.

You will have to pay more than $540. Probably more like $570. Get it.

That is because it is $500 + Minimum Balance (where the min. bal. includes some payment for the $500 also). So, you are kind of double paying.

See IF they can explain it to you better! SMILE.

Leave a Reply