2 Promotions only 1 outcome?

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beandean
 
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2 Promotions only 1 outcome?

Postby beandean » Mon Jul 07, 2008 2:18 pm

Hiya sorry if this has been asked before and this maybe is a silly thing to be asking.

My credit card offers me 2 promotions... 0%apr for 14 months on balance transfer AND 0%apr on purchases until september. I had already transfered a balance and then after that bought some items with the card. Im currently getting 0% on my purchases but what happens in september? If i pay off the amount run up from purchases and return it back to the transfer amount will i still have 0% on the balance transfer amount until the end of the 14 months or by me purchasing something on the card, has that enforched just the 0% purchase promotion only? Will i be paying the normal apr rate after september on all the overall ballance (balance tranfer amount too)?

hope that makes sense


bikermike
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Postby bikermike » Mon Jul 07, 2008 3:06 pm

Credit card companies apply your payments to the balances with the lowest interest first. Let's say on this card you had 5k in balance transfers and 1k in purchases. 6k total. When September rolls around your payments will be applied to the 1k in purchases first because their APR is lower. Even if you made a 1k payment or a 5k payment it doesn't matter. There will still be a thousand dollar balance and that will be calculated as coming from the purchases.

This is why when you do balance transfers it's best just to use the card for that purpose only until the balance has been paid off in full.

Did I write this in a way that's clear? Let me know if you understand or not I'm sure some other people on here can answer it better than I can.

beandean
 
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Postby beandean » Mon Jul 07, 2008 3:41 pm

so if there is only 1k of the total 6k balance was paid off at the end of september, what will the apr be calculated to? the 1k of purchases or the over all 5k thats still exists?

Im getting there. cheers for helping

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Jul 07, 2008 9:11 pm

In a nutshell you will be paying interest until the balance is paid off to zero. Because any payments you make will automatically go towards the lower interest rates first. Even if you only made a 1 dollar in purchases it would be the same -- as long as there was a dollar a more balance on the card, you would be paying interest.

If you had $1,000 of the balance left in the September the APR would be whatever your normal interest rate is. This is because the payments went towards the lower interest rate.
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Multi-Purpose
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Postby Multi-Purpose » Tue Jul 08, 2008 2:54 pm

If he did $5000 in a balance transfer his payments would still be going towards it until he had made 5000 in payments. After he's paid 5000 then the payments would start counting for the purchases.
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fffresh
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Postby fffresh » Wed Jul 09, 2008 3:21 am

Beandean if you do $5,000 in balance transfers and $1,000 in purchases your payments will go towards the B.T. until you have paid $5,000 in payments. Only then will it start counting towards the purchase. It sucks but that's jsut the way it is. Next time you do it just use one card for the balance transfer and don't put any purchases on it makes it a lot easier and saves you money.



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