A credit card company has sent me an offer of a balance transfer with 0% interest until November 2017.
Their Q&A section has this question:
Q: If I take advantage of this offer, will it affect future interest charges on my new purchases?
The question is answered as follows:
A: Prior to taking advantage of this offer, if you did not have a balance or if you paid your balance in full each month, you did not pay interest on your new purchases. This is referred to as an interest-free period (also called a grace period). If you take this offer and do not pay off your entire balance each month (including the promotional balances that you add by using this offer), you will lose that interest-free period. This means that you will begin paying interest on all new purchases, even if you pay your purchase balance in full each month.
Reading the answer it looks like utilizing this balance transfer offer changes how I will pay interest on this card.
For example, let's say that I have a max credit line of $5000 and a balance of $0 (i.e. the entire credit line is available for use). I then proceed to utilize one of the balance transfer checks that this company sent me and pay off a debt at an other credit card company.
After this point I make a purchase of $100 on this card and I pay off this purchase 15 days later (inside the same cycle). It looks like (judging from their answer) I would end up paying interest on the $100 purchase even if I paid it fully within the same cycle.
Is this a correct interpretation of their answer to the question, or am I misunderstanding it?