Help me understand interest after BT's

[Jansroom726]

Hello all.

I need some help understanding Balance Transfers.

I just took advantage of a BT offer on my Discover card.

It states that any purchase on the card while I have a BT offer on the card, will begin immediately gaining interest.

So I can't use my Discover card for everyday purchases until my BT is paid in-full unless I'm ok paying interest?

And is the interest only on the purchase amount, and not on the BT amount, right?

Thank you for your help and clarification.

[Anonymous]

Any time you carry a balance on a card, you lose the "grace period" on that card until the balance is PIF, (usually for two consecutive months).

The grace period is what allows you to make a purchase and then pay it off when you get the statement and pay no interest. Since you are carrying a balance on the card, you will pay interest from the day you make a purchase.

I would recommend putting that card away until the balance is paid off. It is called using "credit islands": one card for revolving balances, and a separate card for day-to-day purchases which you always PIF.

[Anonymous]

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@Anonymous wrote:

Any time you carry a balance on a card, you lose the "grace period" on that card until the balance is PIF, (usually for two consecutive months).

The grace period is what allows you to make a purchase and then pay it off when you get the statement and pay no interest. Since you are carrying a balance on the card, you will pay interest from the day you make a purchase.

I would recommend putting that card away until the balance is paid off. It is called using "credit islands": one card for revolving balances, and a separate card for day-to-day purchases which you always PIF.

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OP should be able to call or chat and request 0 interest for 12 months on purchases. This would allow OP to still use card for double cashback stuff online, and pay off in addition to BT.

If not, any monthly payment you make, the amount over the minimum payment will be applied to higher interest balances.....

[Jansroom726]

I see, thanks!

I think what I will do is call Discover and ask about having 0% on purchases, because I enjoy using the card.

If not, I will simply put the card away until it's paid off.

I appreciate the clarification.