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Established Contributor
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Registered: ‎10-04-2010
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Re: Amazon Financing


XxRaVeNxX wrote:

SpeedingWheels wrote:

Your payment gets applied to the promotional purchase FIRST, thus any additional purcheses you make will generate interest charges. 

This is how they get you. So if you're going to make a large promo purchase either resolve to retire the card until that is paid off or know you're going to pay interst on new purchases. 


Thanks! If this is true...you answered my question...



I am almost pretty sure that with the new credit card act, any payment gets applied to the balance with the HIGHER interest rate first. If your promotional purchase is still at 0%, they should apply the payment to any other purchases with a higher interest rate. I would definitely call them to verify but I think that should be the case.

BK in 2008, after making very stupid financial. decisions.

Barclay's Apple Financing Card ($8400) --- Capital One Quicksilver ($13,000)---GEMB CareCredit ($5700) --- AUFCU ($10000)--- Walmart ($5000)--- Discover IT ($5000)

Established Contributor
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Registered: ‎10-04-2010
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Re: Amazon Financing

[ Edited ]

P.S I forgot to specify that this applies to payment ABOVE your minimum payment.

 

The credit card company can decide to apply the minimum payment whereever they want but ANY payment above the minimum MUST be applied to the highest interest balance FIRST

 

The other exception is the last two billing cycles of a deferred interest balance. All payments made during the last two billing cycles will be applied to that deferred interest balance

BK in 2008, after making very stupid financial. decisions.

Barclay's Apple Financing Card ($8400) --- Capital One Quicksilver ($13,000)---GEMB CareCredit ($5700) --- AUFCU ($10000)--- Walmart ($5000)--- Discover IT ($5000)

Regular Contributor
Posts: 369
Registered: ‎02-01-2010
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Re: Amazon Financing


XxRaVeNxX wrote:

SpeedingWheels wrote:

Your payment gets applied to the promotional purchase FIRST, thus any additional purcheses you make will generate interest charges. 

This is how they get you. So if you're going to make a large promo purchase either resolve to retire the card until that is paid off or know you're going to pay interst on new purchases. 


Thanks! If this is true...you answered my question...


Per the CARD act, the payment amount that's OVER the minimum gets applied to the balances(s) with the highest rates. If you only pay the minimum, it will get applied to the promo only. The piece below is from creditcarddotcom in direct reference to this:

 

Highest interest balances paid first: When consumers have accounts that carry different interest rates for different types of purchases (i.e., cash advances, regular purchases, balance transfers or ATM withdrawals), payments in excess of the minimum amount due must go to balances with higher interest rates first. A common practice in the industry had been to apply all amounts over the minimum monthly payments to the lowest-interest balances first -- thus extending the time it takes to pay off higher-interest rate balances.



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Re: Amazon Financing


SpeedingWheels wrote:

Your payment gets applied to the promotional purchase FIRST, thus any additional purcheses you make will generate interest charges. 

This is how they get you. So if you're going to make a large promo purchase either resolve to retire the card until that is paid off or know you're going to pay interst on new purchases. 


This right here answers the OP's question.

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Established Contributor
Posts: 761
Registered: ‎10-04-2010
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Re: Amazon Financing

Hope this helps OP about the payment allocation. I looked it up and it is true that any payments over the minimum gets applied to the highest interst rate first.

 

http://www.bankrate.com/financing/credit-cards/clarification-on-payment-allocation-rule/

 

 

 

BK in 2008, after making very stupid financial. decisions.

Barclay's Apple Financing Card ($8400) --- Capital One Quicksilver ($13,000)---GEMB CareCredit ($5700) --- AUFCU ($10000)--- Walmart ($5000)--- Discover IT ($5000)

Frequent Contributor
Posts: 271
Registered: ‎08-09-2009
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Re: Amazon Financing


XxRaVeNxX wrote:

Repo-ed wrote:

balance is a balance is a balance.  You still owe it.  They'll just deduct your finance offer purchase out of the balance, at time % should be applied from other purchases.


 

Not what I asked. I trying to make sure payments are made correctly so that it stays in the current financing timeframe and they dont try to hit me with the interest


Just to be on the safe side, Id just make sure that the balance from the financing is paid in full on the 6th month...The rest of the balance from other purchases should not be affected as long as you paid the 800 by month 6, the other 300 or so that you rack up should just be on regular interest and they should be able to tell.


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