topic Re: Chase Freedom 5% categories and 0% balance transfer in Credit Cards

Chase Freedom 5% categories and 0% balance transfer

Appleman — Wed, 20 Sep 2017 00:11:38 GMT

If I have a balance transfer on my Chase Freedom card is it still possible to take advantage of the 5% categories?

Say I have $1,000 balance at 0% and use the card for a 5% category. If I paid the amount equal to the new purchase would I accrue interest for longer than the day the purchase is on my account?

Re: Chase Freedom 5% categories and 0% balance transfer

Anonymous — Wed, 20 Sep 2017 00:28:38 GMT

Not exactly sure what you are asking, but lets see if I can figure it out. Are you asking if you have $1000 in a balance transfer on the card and then you make a purchase in the 5% category, would you get rewards on the 5%? If so, the answer is yes. But only on the purchase.

Re: Chase Freedom 5% categories and 0% balance transfer

UpperNwGuy — Wed, 20 Sep 2017 00:35:38 GMT

I think OP is asking whether making a purchase will screw up his 0% interest rate on the balance transfer. Members of this forum have often advised that is usually a bad idea to use the same card for both 0% balance transfers and regular spending.

Re: Chase Freedom 5% categories and 0% balance transfer

K-in-Boston — Wed, 20 Sep 2017 01:01:00 GMT

As long as you pay at least the full amount of new charges PLUS the minimum payment (which will apply to the lowest APR balance, in this case your balance transfer), yes. However you will not have a grace period on new purchases so you would net less than 5%. The actual amount of loss would depend on your daily rate and the length of time between the charges posting and your payment being applied.

Re: Chase Freedom 5% categories and 0% balance transfer

Anonymous — Wed, 20 Sep 2017 01:14:45 GMT

If you are also in a 0% on purchases intro period, you can use your card for purchases without a problem. If you don't also have 0% on purchases, I would avoid making purchases until the BT is paid off.

Re: Chase Freedom 5% categories and 0% balance transfer

HeavenOhio — Wed, 20 Sep 2017 02:33:10 GMT

The current offer for the Freedom is 0% on both purchases and balance transfers for the first 15 billing cycles. If that's the offer that's on the OP's account, he will be fine to use the card as he pleases.

Re: Chase Freedom 5% categories and 0% balance transfer

DeeBee78 — Wed, 20 Sep 2017 03:10:43 GMT

@Appleman wrote:
If I have a balance transfer on my Chase Freedom card is it still possible to take advantage of the 5% categories?

Say I have $1,000 balance at 0% and use the card for a 5% category. If I paid the amount equal to the new purchase would I accrue interest for longer than the day the purchase is on my account?

It's possible with some cards to maintain your grace period on purchases, while you have an outstanding balance transfer. Generally, you just have to make the minimum payment, plus the total you've spent on new purchases. However, a lot of poeple would advise against this because one little slip up in math means you could lose your grace period. Check your cardmember agreement.

Somewhat related: Capital One's statements now include an "Interest Saver" payment that tells you how much you have to pay to avoid interest, even if you have an outstanding balance transfer. Probably the only card brand I would suggest doing this with, since you have a document to back you up if you're charged interest somehow.