Chase raising my Balance amt on higher % but lowering balance on lower % can they do that?

[Anonymous]

I have a Chase card and in January I owed $1508.69 with a 7.90 APR

I did a balance transfer for $6000.00 at 3.99 APR life of balance until paid.

I looked at my statement ONLINE since I opted out of paper in January so I

have only been paying $135.00 a month but really looked and compared the last

6 months because I payed off all my other bills and was now going to pay $250.00 a month.

I noticed that each month since January they (CHASE) has been adding to my $1508.69 balance

in January, About $20.00 a month!  It is now $1569.05.  Can they do this? I thought they passed a law

that they can not  paydown just the lower balance with the lower APR... That they have to apply some of your payment to both??  But they are INCREASING the smaller balance with the higher APR...

Message Edited by GinaK on 07-06-2009 02:23 AM

[ocheosa]

Sorry you are just realizing but yes they can and do apply payments to the lower apr balance first. This is why all advise never do a balance transfer to an account that has a balance.

[Anonymous]

I guess I can see why they would pay down the lower % first, but for me to have made a purchase for $1508.00 and now they  keep  ADDING to the balance which has jumped to $1569.00 in 6 months, I just don't see how they can do that since since the original purchase was only $1508 @ 7.99 to begin with!!  geezzz that's messed up......

Message Edited by GinaK on 07-06-2009 02:22 AM

[score_building]

GinaK wrote:

I guess I can see why they would pay down the lower % first, but for me to have made a purchase for $1508.00 and now they  keep  ADDING to the balance which has jumped to $1569.00 in 6 months, I just don't see how they can do that since since the original purchase was only $1508 @ 7.99 to begin with!!  geezzz that's messed up......

Message Edited by GinaK on 07-06-2009 02:22 AM

the 1508.00 balance is increasing (and will continue to increase each month that it is not PIF) because they are adding the interest accrual to the balance with the higher apr every month until PIF.  again, that is why it is always advisable not to mix apr unless you know the terms and how they work.

until the new laws take effect next year PIF or BT is probably the quickest way to short circuit the interest accruals.