Will you be charged if you pay off your credit card within the first year?

Member

I have an offer to get a credit line with 0% APR for the first year. If I get this card, max it out, and pay it back by the end of the year, will I be charged anything extra? I am tempted to do the offer so we have an option to have a usable card right now for food and essentials without dipping into our savings anymore.

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May 3, 2020 9:39 PM

Some do yes, I think this is called a surge fee? I could be wrong on the term but they will essentially put this in the fine print that they want you to be contracted to them for debt for a period of time before paying it off or you will be penalized for it. This is not as common today because people became outspoken about it over the years but it still does happen.

May 4, 2020 6:37 PM

Member

You can see what you will owe in yearly interest using this: https://www.creditcards.com/calculators/payoff/


I know credit card companies don't make it easy for us to know what we are and aren't being charged for though!

May 10, 2020 8:50 PM

Member

You can be penalized for it depending on what you signed on for. Some will do this and others won't. Did you read the fine print of the card in question?

July 23, 2020 8:56 PM

Member

I never heard of being charged for such a thing but I have never been one to pay off a card and close it. I am assuming this is what you are referring to.

July 24, 2020 12:14 AM

I think this only applies to people who sign up for a credit card and it states that you need to have it open and active for at least 2 years. If you have had it for years and decide to pay it off, they can't penalize you.

July 25, 2020 7:00 PM