Feb 10, 2009 04:15 PM
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Most of us get calls from banks to take various loans. I hold a HSBC credit card for a good two years and was always pestered for a Balance Transfer. So one find day I took the BAIT.
Until I took the BAIT, I had a wonderful feeling about the BANK im dealing with and this feeling lasted until I took the BAIT.
I took the BALANCE TRANSFER as the interest rates were very low compared to the normal rates that a bank charges. But looks can be deceptive. What the cust. serv reps never tell you about is how they are going to charge the interest rate which u think I LOW.
I dont want to waste the readers time and will like to caution ppl regarding this BALANCE TRANSFER. In a BT you hav options of choosing the tenure of the loan and accordingly you hav different interest rates for different tenures.
And yes you hav a processing fee to pay(for the fraudulent csr's trained to CON u nd me). As when we use a credit card for purchases we normally assume that the interest will be charged on monthly basis, But when you take BT you will be charged on daily basis.
Yes DAILY BASIS. The interest is calculated somwhat like this: BT amt(no. of days/365)int rate
And if you make any purchases apart from ur BT those purchses will also be charged at the normal interest rates. But the thing is if u tak a BT pls dont make ne purchases coz no matter how much amt u pay first ur BT will be deducted nd den ur odr purchases will be deducted. That means you keep on paying exorbitant interest rates on ur odr purchases.
Thats it my friends. Hope I save ur hard earned money. If u hav further ?'s do feel free to ask. Coz m once bitten twice shy
