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Credit card offer question

  • Thread starter Thread starter KK
  • Start date Start date
KK

KK

Lifer
Got an offer for 4.9% balance tranfer for life of the balance transfered. Now what I want to know is about the interest on the balance. Say every month you make a payment, does your payment get applied to the interest first then to the balance. Or do they stick you with the interest at the cards regular interest rate. Kinda like how they screw you if you purchase something on the card while you got a promotional rate going on a balance transfer.
 
yes, it goes to the 4.9 first, so be careful. the other amounts get charged 19% or whatever your APR is.
 
Originally posted by: simms
yes, it goes to the 4.9 first, so be careful. the other amounts get charged 19% or whatever your APR is.
Click to expand...

How about the interest on the 4.9? That won't get put in another interest category will it?
 
I don't know what you mean by "put in another interest category".

Here's a rundown.

1. You can have balances with different interest rates. If you have $100 at a 4.9% rate and $100 at a 12% rate, they will figure out the interest on the two amounts and put the total amount of interest on your bill.

2. Your payment is applied first to the interest from the last cycle, then to the principal, starting with the lowest interest balance first. If you pay $50 in the above scenario, they will first apply the $50 payment to the interest from last month, then what is left is applied to the $100 balance at 4.9% because it has the lowest interest rate.
 
Originally posted by: kranky
I don't know what you mean by "put in another interest category".

Here's a rundown.

1. You can have balances with different interest rates. If you have $100 at a 4.9% rate and $100 at a 12% rate, they will figure out the interest on the two amounts and put the total amount of interest on your bill.

2. Your payment is applied first to the interest from the last cycle, then to the principal, starting with the lowest interest balance first. If you pay $50 in the above scenario, they will first apply the $50 payment to the interest from last month, then what is left is applied to the $100 balance at 4.9% because it has the lowest interest rate.
Click to expand...

I think you hit on what I was meaning to say in #2. If I had $1000 in at 4.9%, and nothing else on the card. If the interest for the month is $10, and I pay $50. then the interest is paid, and 40 is put toward the principal. Not $50 dollars straight toward the principal and the $10 in interest is accrueing at the regular cards rate of 10 or so percent.
 
Originally posted by: kranky
I don't know what you mean by "put in another interest category".

Here's a rundown.

1. You can have balances with different interest rates. If you have $100 at a 4.9% rate and $100 at a 12% rate, they will figure out the interest on the two amounts and put the total amount of interest on your bill.

2. Your payment is applied first to the interest from the last cycle, then to the principal, starting with the lowest interest balance first. If you pay $50 in the above scenario, they will first apply the $50 payment to the interest from last month, then what is left is applied to the $100 balance at 4.9% because it has the lowest interest rate.
Click to expand...


I have a CC like that, two different rates, one for normal and other for balance transfer. Damn interest is like $70 a month. I need to get rid of it otherwise i'll never pay it off.
 
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