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About LinkBacksHey 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?
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Green Member
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- Nov 2010
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CARD Act balance transfer predicament for two 0% offers?
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Centurion Member
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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.CARDS (and why)
FIA Card Services: Fidelity Amex (best cash back excepting 5% cards), Fidelity Visa (spare)
Chase: Freedom (only for 5% reward categories, purchases under $10), Sapphire (not in use), Amazon Rewards (for Amazon purchases only)
CapitalOne: No Hassle Rewards (no foreign transaction fee, my only MasterCard, not in use)
Amex: Blue Cash Everyday (not in use)
Discover: More (only for 5% reward categories)
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Gold Member
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- Nov 2011
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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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