Understanding No interest if paid in full - Video

Transcript: Understanding No interest if paid in full

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[Voice over]: Every now and then, I’ve used special financing to cover a big purchase.

[On screen text]: Understanding No Interest if Paid in Full.

[Voice over]: Taking advantage of a credit card that offered No Interest if Paid in Full financing made sense.

[Voice over]: I’ve applied, been approved, and completed my purchase on the same day, plus the payment options were surprisingly reasonable.

[Voice over]: I knew going into it that I’d start accruing interest the day I made my purchase.

[Voice over]: But I also knew if I repaid my balance within the promotional period, I wouldn’t have to pay the accrued interest.

[Voice over]: Why pay interest if you don’t have to?

[Voice over]: Just to be clear, you could have between six and 12 months to repay your balance depending on your terms.

[Voice over]: My credit card came in the mail about a week after being approved and making the purchase. When my monthly billing statement arrived, it reflected what I had borrowed and the available credit left on my credit line.

[Voice over]: Each month, I could pay the minimum payment due on the statement. But just paying the minimum each month will leave a large amount due at the end of the promotional.

[Voice over]: Knowing that minimum payments might not pay off the balance in time -- I took what I borrowed and divided it by the number of months in my promotional period.

[Voice over]: If I paid this much on time every month –– barring additional purchases, I knew I would pay off the balance before the accrued interest is charged.

[Voice over]: I made sure to pay at least my minimum payment on time every month. Late or missed payments incur a late fee.

[Voice over]: What happens if you don’t pay off the balance by the end of the promotional period?

[Voice over]: Things get expensive. You’re still responsible for the unpaid balance, and now you’ll have to pay the interest that’s been accruing since the purchase date.

[Voice over]: Take away: Pay off your balance in full by the end of the promotional period to avoid paying interest.

[Voice over]: Signing up for automatic payments through Wells Fargo Online can help you avoid missing a payment or paying late. You can always pay by phone, online, or through the mail.

[Voice over]: Use your monthly billing statements to check your progress and remaining promotional balance to avoid accrued interest charges.

[Voice over]: Wells Fargo will send you reminders to help prepare for the end of the promotional period when interest will be added to your balance if it’s not paid off in time.

[Voice over]: You can continue to use your available credit to make new purchases with your card. Be sure to ask about current financing promotions available. Purchases made with your card will be at the regular rate unless special financing terms are available.

[Voice over]: When making financial decisions, it’s always good to be informed. Thank you for making time to learn how a No Interest if Paid in Full promotion works.

[On-screen text]: Wellsfargo.com/cardholders © 2021 Wells Fargo Bank N.A. All rights reserved.

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No Interest if Paid in Full

This special terms plan is also referred to within the industry as “Deferred Interest” plans.

Key attributes of this plan include the following:

The Annual Percentage Rate (“APR”) for Purchases is used to calculate interest on the purchase balance from the date of the original transaction and throughout the special terms (promotional) period. This amount is called the deferred interest charge.

To avoid paying any interest, a Cardholder must pay off the entire purchase balance in full on or before the special terms end date.

If the Cardholder does not pay off the purchase balance by the end of the special terms period, the deferred interest from the date of the original transaction will be added to the remaining balance, and the APR for Purchases will continue to apply until the purchase balance is paid in full.

Paying only the regular payment amount each month will not pay off the No Interest if Paid in Full purchase balance during the special terms period.

Monthly payments must be made each month. The revolving account may not be paid ahead. However, the No Interest if Paid in Full purchase balance can be paid by larger monthly payments or by one large payment which we receive on or before the special terms end date.

The special terms end date may be different than the Cardholder’s payment due date.