CARD Act balance transfer predicament for two 0% offers?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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Hydroshock
 
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CARD Act balance transfer predicament for two 0% offers?

Postby Hydroshock » Sun Dec 04, 2011 8:43 pm

Hey Everyone, so here's a question that i'm wondering if anyone here has any experience with. I have a credit card that currently has 2 separate promo balances at 0% interest, one ending in Feb the next ending next Dec.

Under the new credit card law (CARD Act) excess payment is supposed to apply to the higher interest rate balance, however if I pay before Feb when they're both in the promo 0%, does anyone know how the payment will be applied? I would say under the law it should Apply to the promo ending in Feb, however since the rate at the time of payment is 0% could it be possible it would be split evenly or even applied completely to the one ending next Dec?


jeffysdad
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Postby jeffysdad » Mon Dec 05, 2011 2:38 pm

Wow. That's an interesting question. I would almost bet that the payment will be applied to the balance held under the promo rate that is expiring later (which would be to the bank's advantage). I say that because technically both rates are the same so neither is higher and I really doubt that anyone in congress foresaw such a situation so as to address it in the legislation.

On the other hand, the determination might be made based on whichever rate is highest after the expiration of the promo period, assuming there is a difference.

Sounds like you could be the caller of the day down at the call center if you were to ring them up and ask.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

sdoonan
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Postby sdoonan » Mon Dec 05, 2011 8:49 pm

In this case, since there is not effect based on interest rate, it would be applied based on what is most advantageous to the bank (as jeffysdad said).
Cards I Carry:

Visa: CitiForward Student (1k CL, 15.24%), Capital One Student Journey Rewards (.5k CL, 19.8%)
Discover: More Student (1k CL, 17.99% regular, current rate 1.9% through 3/6/12) (Primary card at this time)
AMEX: Blue Cash Everyday (2k CL, 21.25%)



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