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A credit card just emailed option for pay over time plan -- setup a large purchase over equal monthly payments.
"No interest" they brag, just a fixed monthly fee. What is the fee? Up to 1.72% of the amount selected for the plan.
For a 12 month plan, that's (up to) 20.64% of the original purchase price.
About the same as CC interest rates?
Hold up! Not so fast!
1/2
@scottmiller42@mstdn.socialInterest is calculated based on current balance which declines as you pay off, but the fee is fixed. You can't directly compare!
What is the equivalent interest rate to the max 20.64% fee?
I used 2 diff online loan calculators to corroborate answer. The fee is about equal to a 35% APR! I'm hoping most people have credit card interest rates less than that.
So, caveat emptor! "No interest" doesn't necessarily mean lower cost.