voidman wrote:
Ok, I know the part that one CCC transfers a $xxx to another CC account.
now how is the payment done for the amount transfered.
If i transfer 1000k from one CC A to CC B, and charge $30 on CC A
(BT is 0% for 12 months)
so now the CC A has a balance of $1030. Every month I would pay say $100, now as per CC agreement, the payment is applied to the lowest interest charge first. So i would be paying the 1000 BT and not the $30 charge. So after 10 months, I would have paid of the BT amount but now I might have 10 months finance charge for that $30 I charged.
any insight on this?
Thanks,
You have it exactly right. This is why we often give the advice that if you are going to do a low-rate BT, do not use that card for any purchases until you have the BT balance paid off completely. This is how CCs are able to give low-rate BT offers, as uninformed and unsuspecting cardholders transfer large balances thinking they're getting a good deal, and then continue to use the card as they normally would. Just as you astutely observed, all of your payments for the next several months will go towards the lower-rate BT balance, while the purchases sit there accruing finance charges month after month after month.
BTW, 1000k = $1 million dollars. I'm sure that's not what you meant. 