@Anonymous wrote:
@NRB525 wrote:
@TiggerDat wrote:I believe Citi is just following the law when it does the distribution of what extra amount gets attributed to payment. From what I recall, they have to apply the extra amount to the highest APR portion. I think this was meant to insure that consumers pay less. There was a tendency of some banks in the past to apply the extra amount to the lower APR portion as a way of making more money.
+1
This works in your favor if you are taking a 0% APR offer, and want to add charges to the card, you can pay enough extra to PIF the new charges so minimal interest exposure on those.
OP, what you will want to do is just keep doing what you are doing until the 0% offer expires. At that point, the APR on that 0% balance will jump to something more than 1.99%, and that balance (which was on 0% APR) will now become the "higher interest rate amount" you can pay by paying more than the minimum monthly payment. So you will get a short period of higher APR, but then once that item is paid off, you will be back to keeping the 1.99% APR for the duration on that 1.99% balance.
I'm going to disagree with this. I think that once the 0% expires, you'll have the new APR backdated to when you first made the purchase. While I think that they might be following the law in sending the payment to the 2% first, I would call and ask for clarification on what happens when the 0% expires, and then get it in writing if they say that the increased rate starts accruing on the date the 0% expires.
Citi will not retro the default APR if you dont pay off the full bt amount past the expiration date. The default APR will kick in on the remajning balance on that 0% amount. This also applies to other major credit cards. You are thinking about retail/store cards that offer 0% financing for purchases up to a certain amount.
When the 0% ends, the minimum payment amount will be apllied to the balance on the current 1.99% offer, and extra payments over that min payment will be apllied to the balance that has the higher APR (which will then be the remaining balance that was previously on the 0% promotion)
@NRB525 wrote:
@TiggerDat wrote:I believe Citi is just following the law when it does the distribution of what extra amount gets attributed to payment. From what I recall, they have to apply the extra amount to the highest APR portion. I think this was meant to insure that consumers pay less. There was a tendency of some banks in the past to apply the extra amount to the lower APR portion as a way of making more money.
+1
This works in your favor if you are taking a 0% APR offer, and want to add charges to the card, you can pay enough extra to PIF the new charges so minimal interest exposure on those.
OP, what you will want to do is just keep doing what you are doing until the 0% offer expires. At that point, the APR on that 0% balance will jump to something more than 1.99%, and that balance (which was on 0% APR) will now become the "higher interest rate amount" you can pay by paying more than the minimum monthly payment. So you will get a short period of higher APR, but then once that item is paid off, you will be back to keeping the 1.99% APR for the duration on that 1.99% balance.
Tks guy, the thing is i want lower uti and another CLI and i dont want Citi deny me due to not sufficient payment amount... With Sony finance card by sync, they let you choose to payoff whichever offer you want
