Balance Transfer Promo Period

[Anonymous]

Do CC companies (US Bank for myself) apply payments to the 0% balance transfer balance before applying to the interest-accruing purchase amounts? Do they do similar payment allocation as Blispay with the financing feature where they apply your payment amount all towards your 0% financed amount before applying any amount to the amount charged that is possible to accrue interest?

I am wanting to know if I'd be able to use my US Bank card for the 5% categories and spread my payments out still, or if that would cause me to accrue interest on my purchases throughout the promo period.

I can avoid using the card if that is the case, until the BT is paid off, I just wanted to make sure if I'd be able to use it or not. I don't want to avoid using it for fear of paying interest, and then find out later down the line that I could have been gaining that 5% back on said purchases the whole time without any penalty.

[newhis]

Some lenders will charge interest and others will let you use the card and show you the exact amount you need to pay to avoid fees/interest.

From what I know BofA will charge you interest and will be a $1.50 min charge.

Cap1/Barclay Sallie Mae/Commence they say you can keep using the card, they will tell you how much to pay each month.

[Chris679]

Oftentimes you have no grace period if you are carrying a balance and that includes BT. You will pay interest right away on purchases and that's one of the reasons they push BT so hard. I think they have to apply payment to the highest rate since the card act though, read your cardholder agreement.

[K-in-Boston]

It depends on the card on whether interest on new purchases begins to accrue immediately if the full statement balance (including any promotional balances) is not paid in full each month.  As for the payment, since the CARD Act the default payment allocation should be that any payments above the minimum payment due must be applied to the highest APR first.  For instance, I usually carry a 0% for 6 (or 12 months) balance on my Amazon Prime Store Card since it makes more sense to apply those payments to cards that I am accruing interest on.  Each month, I make a payment of at least the minimum + all new purchases and I do not have to pay interest.  Synchrony handles this well, and also easily allows you to change how you prefer payments to be applied.  On the other hand, I have a 0% BT on my Comenity BJ's card and if I use it for the 5% back when my it or Freedom don't have a warehouse category (or I have maxed out the quarter), I end up getting dinged with a little interest even when I make payments well in excess of the new purchases and minimum payment (still works out better than just using a 2% CB card, though, so I am OK with the interest).  I would call/chat/message the particular lender to find out how new purchases are treated to clarify.