How it works and what you need to know
What is a Reduced APR with Fixed Monthly Payments Promotion?
Reduced APR with Fixed Monthly Payments promotions let you make a qualifying purchase and pay for it over a specified amount of time with a reduced APR.
You may see this promotion advertised as “8.99% APR with 36 Monthly Payments.” (Note: This example is for reference only. The APR and duration of your promotion may vary.)
How it works
Let’s say you make a purchase with a Reduced APR with Fixed Monthly Payments promotion.
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Eligible purchases will be charged interest at a reduced APR from the date of initial purchase until the balance is paid in full.
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A promotional fee may apply and will be shown at the time of purchase.
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Fixed monthly payments are based on the initial purchase amount, promotional fee (if any), and interest, divided by the number of months in the promotional period.
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If you miss a payment or pay less than your minimum payment due, you will be charged a late fee.
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There is no pre-payment penalty.
Throughout the promotional period, your monthly statement will show you:
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the initial purchase date,
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the reduced promotional APR,
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the date the promotional period ends, and
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any outstanding promotional balance.
Frequently Asked Questions
We've compiled a list of frequently asked questions about Reduced APR with Fixed Monthly Payments promotions to help you understand how these promotions work. Click on any of the questions below to learn more.
If you have any other questions, contact us at 1-800-252-2551.
Payments
If I make only my minimum payments, will I be charged interest?
Yes. Your minimum monthly payment on a Reduced APR Fixed Payment Promotion is equal to the purchase amount, promotional fee (if there is one) and estimated interest for the length of the offer divided by the number of months in the offer. Your last payment may vary due to rounding. Paying your minimum monthly payment on time will pay off your promotional balance in full by the end of the promotional period.
If I make payments that are larger than my minimum payments, are those amounts always applied to my Reduced APR with Fixed Monthly Payments promotional balance?
No. Generally, we first apply the amount over and above your minimum monthly payment to higher interest balances and older balances.
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If you have a deferred interest promotional balance, any payment over and above your minimum will be applied first to the deferred interest balance during the last two months of the deferred interest promotional period.
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If you have two or more Reduced APR with Fixed Monthly Payments promotional balances, you may be able to redirect the excess amount among those balances as desired. To do so, call us at the number on your account statement.
How do I make a payment?
It’s easy. We offer three convenient ways to pay your monthly bill.
By Phone
Call the phone number shown on your statement or on the back of your credit card.
By Mail
Department of Accounts
P.O. Box 33802
Detroit, MI 48232-5802
Please allow 7 days for your payment to reach us.
Balance Information
How long do I have to pay off my Reduced APR with Fixed Monthly Payments promotional balance?
Your Promotion Expiration Date can be found on your monthly billing statement in the “Summary of Promotional and Standard Balances.”
You can also login to your account at myonlineaccount.net to see your Promotion Expiration Date.
Purchases
Can I make other purchases on my account during the Reduced APR with Fixed Monthly Payments promotional period?
Yes. You can make purchases up to your available credit limit.
But remember, other balances affect how your payments are applied. We first apply your payments to the minimum payments due for all balances. The portion of any payment that is larger than your minimum payment is an excess payment.
Generally, we first apply the excess payment to higher interest balances. But, if you have a deferred interest promotional balance, any excess will be applied first to the deferred interest balance during the last two months of the deferred interest promotional period.
Statements
Where can I find information about my Reduced APR with Fixed Monthly Payments promotion on my statement?
Your billing statement is designed to put all the information you need at your fingertips. Whether you receive paper or paperless statements, you can quickly review transactions, see your payment information and view all the details of your promotional purchases. Information about your Reduced APR with Fixed Monthly Payments Promotion is found on your statement under “Summary of Promotional and Standard Balances.”
Minimum Payment Due
Make at least the minimum payment due each month by the due date shown.
Transactions
Summary of your payments and any recent transactions.
Summary of Promotional and Standard Balances
An overview of your Promotional purchases.
Initial Purchase Date
When you made the Promotional purchase. Interest accrues from this date.
Promotion Expiration Date
Pay your promotional balance in full by this date.
Accrued Interest
The amount of Interest accrued at your Promotional APR from the date of purchase.
Interest Charged
The amount of Interest you are charged is based on your Promotional APR and the current billing period.
Outstanding Balance
The remaining amount you need to pay in order to pay off your promotional balance.
Minimum Payment Due
The minimum amount you need to pay by your due date.
Interest Charge Calculation
Shows the APR of the interest on the Reduced APR with Fixed Monthly Payments promotional balance. Your Standard Revolving APR for non-promotional purchases is also shown here.
Where can I get my statement?
There are two ways you may receive your monthly billing statement.
By Mail
You will receive a paper statement in the mail every month unless you enroll in paperless statements.
Online
If you enroll in paperless statements, or if you want to see your account information online, log in to your account at myonlineaccount.net.
