And sometimes, depending on card policies, they make money when the consumer makes
new purchases on the card which accrue interest immediately at the 18.95 % rate while payments only go to paying down the 0 % rate balance.
So when cardholders
made new purchases on the card, they often accumulated high interest payments because their monthly payments were going to their low interest balance transfers rather than to their newest purchases.
The purchase APR applies to
new purchases on the card, and other types of APRs apply to other transactions, notes the Federal Reserve.
(I recommend not making
any new purchases on this card rather use a different card and pay it in full every month)
If you make
no new purchases on this card, it will take you over 24 months and $ 791 in interest to eliminate that debt.
New purchases on the card are unlikely to be interest - free.