The DIRTY TRICK Credit Card Companies Use to Make you Pay Interest – The Credit Shifu

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29 comments

Anthony R January 23, 2023 - 10:13 pm

Thank you for the PSA, I didn't know that.

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Mark Cohen January 23, 2023 - 10:13 pm

This is news to me. But I’m figuring any interest savings or flex pay plans are excluded.

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shojus January 23, 2023 - 10:17 pm

WOW! This is the FIRST I have ever heard of this. This is a pretty terrible that it's not spelled out better in the terms and conditions… Thanks 4 this very informative video! Also, I am gonna send you some money for a haircut. 🤣

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stormb28 January 23, 2023 - 10:18 pm

Just pay in full and not worry about this

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Chris Ellinger January 23, 2023 - 10:38 pm

It's like scoring in Bowling.

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EEJ EEJ January 23, 2023 - 10:40 pm

2:09 did not know this at all!

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Amanuel January 23, 2023 - 10:44 pm

Love this, had no idea

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Keith Jones - Personal Finance Videos January 23, 2023 - 10:55 pm

Sneaky devils

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Icarus January 23, 2023 - 11:39 pm

There's another thing to watch out for. Those 0% intro offers only qualify if, at the end of the intro period, you have a $0 balance (meaning you paid off the entire debt by the last statement's due date).

So let's say you have a new card with 0% interest for 15 months. For the first 14 months, you are only required to pay the minimum balance and you still qualify for no interest. However, by the 15th month's statement due date, you have to pay the entire balance due. If you do not, then the 0 interest offer is void and all the interest during the 15 months is immediately applied.

So let's say you pay the required minimum on the first 14 bills and on the 15th bill, you pay the entire bill, except for 1 cent (in other words, you let one penny roll over). That penny destroys your 0% offer, and suddenly thousands of dollars in interest (covering the entire 15 month period) are added to your 1 cent balance. In other words, you aren't just paying interest on the penny.

So make sure the final month in your intro period is paid off 100%.

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👉 BUY YOUTUBE VIEWS 👉 Link in Bio January 23, 2023 - 11:41 pm

good job!👍

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Nick V January 23, 2023 - 11:54 pm

Wow. I thought I had a fairly advanced understanding of credit cards. This is so easy to miss. Thank you.

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Joseph Robbins January 24, 2023 - 12:00 am

Just FYI from personal experience…if you are using the Chase Trifecta and like me have 5 cards with Chase don't think you can avoid this by using an introductory 0% offer on one of your cards because Chase has informed me that they do not do balance transfers between Chase cards! Be smart and pay off your balances in full every month!

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gil mendoza January 24, 2023 - 12:01 am

I honestly didn’t know this, I’ve always paid them off every month… good to know

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smart think January 24, 2023 - 12:11 am

My gosh! Pay off your balances everyone. Credit card debt is truly terrible!

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Lincoln Vargas January 24, 2023 - 12:44 am

He says dirty really weirdly lol

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Boon Doggle January 24, 2023 - 12:45 am

This was extremely helpful and informative, especially the explanation of the details about trailing interest. A lot of people don’t realize that they’re charged interest on new charges from the moment of purchase when they carry a balance from month to month.

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Ciborium January 24, 2023 - 1:34 am

Back in the day, before credit card companies allowed you to AutoPay in full every month, Discover went out of their way to piss me off. I would schedule a bill pay from my bank to pay the credit card. With Chase, I scheduled the payment on the due date and it would be applied that same day. But Discover was different. I would schedule the payment on the due date, but Discover would not apply it until the following business day. This racked up fees and interest. Took a couple months to over-pay the due amount plus accumulated interest to get back to a zero balance by the due date. I then scheduled the payment for one business day before the due date, or Thursday if the due date was Friday through Sunday.

But now all my credit card companies allow AutoPay in full every month so I have not had this problem since.

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Logan Scott January 24, 2023 - 2:57 am

Illuminati confirmed!

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Tantra dos Santos January 24, 2023 - 3:22 am

Oh, boy…

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W C N January 24, 2023 - 3:34 am

Yeah I don’t get why some people don’t pay the whole balance off now the rest just can’t but people that can like my parents they have the money to do it but they don’t. They only pay the minimum payment fuck that I pay the whole balance off every month

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Sydney Haughton January 24, 2023 - 4:09 am

I pay the statement balances, never ever been charged interest.

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Life of Ryan RC January 24, 2023 - 4:26 am

Banks aren’t evil when you want their points or borrow their money,but when you fail to pay back what you owe, they are “Evil”. 😂

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Seth R January 24, 2023 - 6:40 am

I always just have a couple of cards with 0% cards for big purchases, like home improvement, and only use cards with actual accruing interest that I can pay off.

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Benjamin Wolf January 24, 2023 - 12:21 pm

Question. If you have a credit card with a 0% APR for 15 months and you have a balance on the card at the end of every month, BUT you pay it off fully before the end of the 15 months would you still have interest to pay?

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💰 Make $750 Per Day January 24, 2023 - 1:44 pm

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Dallin Bunnell January 24, 2023 - 3:18 pm

I never knew this. Thank you for sharing!

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Meng Chou January 24, 2023 - 3:53 pm

Thanks for the information. One time I accidentally only paid the minimum and when I got the next bill, I was charged with interest. I couldn’t get the calculation to reflect the same way on the bill but it was only a couple of bucks so I just paid the whole thing. Now I know why my math was off!!!!

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David Spencer January 24, 2023 - 4:34 pm

Consistency is the key to success,despite the financial instability all over the world, I’m so excited I’ve been earning $45,000 from my $10,000 investment every 10days…

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RAFAEL L January 24, 2023 - 5:56 pm

This bank, another thing is, I tend to pay close to the due day in full, well they charge me interest on the last 2 months, I called chase last weel, they gave me a Bs explanation about daily interest but refunded right away 600+ in interest, Lesson leaned

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