aiyaa.aa.. which other bank having the same 0% at the moment, cos my bro need to BT out from citibank instead?

guys, this is my understanding on BT

let's say, if you sign up 0%-6mth BT for 60K.

1)you need to pay 'not a cents less' of 60K/6=10K per month x 6mth before monthly statement due date. this manner NO interest will be charged on your BT program. THIS IS THE ACTUAL MEANING OF 0%-6mth BT.

2)case 2 - on the same program above, statement shows min 5% of 10K repayment amount for month, say Feb. This is where the TRICK is. if you only pay 500, you will be charged % on bal 9500 aft statement due date till next statement date (ie y%pa x 9500xZZdays). if you continue this way, % will snowball eventho its still under BT. Banker starts to raise their eye-brown ...thats where you are caught..(read those small fonts carefully)

2)case 3 - if you pay ' a cent less or a day late than the min 5% or due date stated. you are deem to have DEFAULT the BT program entirely. Thus, BT cancelled and all balance of BT will be charged at 18%pa till full seatlement.

Further NOTE under the new system. If you failed to pay in FULL your current month statement amount before the due date, all your UNBILLED transactions will NOT enjoy the 30days interest-free anymore (before statement date). Instantly, interest will be imposed on all transactions from date of posting.

One more point to note, if your statement bal is say, 1507.62. if you pay 1507 before due date, its still consider repayment not in FULL. So, always pay 1510 (specially if you are paying vis cash doposit machine). Banking computing system recognise digits to digits. this apply to loan repayment such as mortgage, hp etc.


If i'm wrong, pls share your inputs

This post has been edited by vincentwmh: Mar 19 2012, 05:22 PM

very good write-up, i'm awaiting the CIMB BT as well here.