Using a creditcard after Balance Transfer/min payments
Nov 25, 2012, 8:08 am
#1
Original Poster
Join Date: Nov 2010
Location: Brooklyn
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Posts: 963
Using a creditcard after Balance Transfer/min payments
Hi,
I have a 0% balance transfer on a Citi AA card that has about 6K sitting on it, I was wondering, since I am currently paying the minimum monthly payments, if I put a charge on it will I get stung with interest that I cannot clear until the entire card is paid down?
Currently I don't use the card, but it means I missed out on Small Business Saturday -by missed out I mean I only used 8 cards
Is it that it loads new charges behind the zero balance so any payments I make will apply to the balance transfer amount and the new charges will sit there accruing interest as I believe, or can you pay them down first?
I have a 0% balance transfer on a Citi AA card that has about 6K sitting on it, I was wondering, since I am currently paying the minimum monthly payments, if I put a charge on it will I get stung with interest that I cannot clear until the entire card is paid down?
Currently I don't use the card, but it means I missed out on Small Business Saturday -by missed out I mean I only used 8 cards
Is it that it loads new charges behind the zero balance so any payments I make will apply to the balance transfer amount and the new charges will sit there accruing interest as I believe, or can you pay them down first?
Nov 25, 2012, 8:52 am
#2
Join Date: Oct 2009
Location: Portland, Oregon (PDX)
Programs: UA 2MM/*A Gold, Alaska MVP Gold, WN A-List, Hertz Platinum, IHG Platinum
Posts: 276
It depends. Some banks have policies that went into effect ove the past two years due to both the SAFE Act and CARD Act that regulate how banks apply your payments to balances owed.
In previous years, banks would apply payments to the lowest APRs first allowing them to profit from the high APR categories (purchases and cash advances). Now, most banks apply your payment to highest APRs first. For example, BofA now applies your payments to whatever the highest APR you owe, first. Chase states that they allocate your payment "however [we] choose".
So, either call up Citi and ask them how they allocate payments or pull up the T&Cs for your card and you'll find the answer.
In previous years, banks would apply payments to the lowest APRs first allowing them to profit from the high APR categories (purchases and cash advances). Now, most banks apply your payment to highest APRs first. For example, BofA now applies your payments to whatever the highest APR you owe, first. Chase states that they allocate your payment "however [we] choose".
So, either call up Citi and ask them how they allocate payments or pull up the T&Cs for your card and you'll find the answer.
Nov 25, 2012, 10:25 am
#3
Join Date: Nov 2010
Location: Traveling some where hopefully
Programs: AS, AA Gold, and Hilton
Posts: 1,954
It depends. Some banks have policies that went into effect ove the past two years due to both the SAFE Act and CARD Act that regulate how banks apply your payments to balances owed.
In previous years, banks would apply payments to the lowest APRs first allowing them to profit from the high APR categories (purchases and cash advances). Now, most banks apply your payment to highest APRs first. For example, BofA now applies your payments to whatever the highest APR you owe, first. Chase states that they allocate your payment "however [we] choose".
So, either call up Citi and ask them how they allocate payments or pull up the T&Cs for your card and you'll find the answer.
In previous years, banks would apply payments to the lowest APRs first allowing them to profit from the high APR categories (purchases and cash advances). Now, most banks apply your payment to highest APRs first. For example, BofA now applies your payments to whatever the highest APR you owe, first. Chase states that they allocate your payment "however [we] choose".
So, either call up Citi and ask them how they allocate payments or pull up the T&Cs for your card and you'll find the answer.
Nov 25, 2012, 2:05 pm
#4
Original Member
Join Date: May 1998
Location: Tampa, FL
Programs: AAMM & PLT; UA Gold, DL Silver, Marriott LT Titanium Elite, Hilton Diamond, Hertz #1 Gold Club
Posts: 1,591
Hi,
I have a 0% balance transfer on a Citi AA card that has about 6K sitting on it, I was wondering, since I am currently paying the minimum monthly payments, if I put a charge on it will I get stung with interest that I cannot clear until the entire card is paid down?
Currently I don't use the card, but it means I missed out on Small Business Saturday -by missed out I mean I only used 8 cards
Is it that it loads new charges behind the zero balance so any payments I make will apply to the balance transfer amount and the new charges will sit there accruing interest as I believe, or can you pay them down first?
I have a 0% balance transfer on a Citi AA card that has about 6K sitting on it, I was wondering, since I am currently paying the minimum monthly payments, if I put a charge on it will I get stung with interest that I cannot clear until the entire card is paid down?
Currently I don't use the card, but it means I missed out on Small Business Saturday -by missed out I mean I only used 8 cards
Is it that it loads new charges behind the zero balance so any payments I make will apply to the balance transfer amount and the new charges will sit there accruing interest as I believe, or can you pay them down first?