topic Re: Should I pay off my Credit Card non balance transfer balance? in Credit Cards

Should I pay off my Credit Card non balance transfer balance?

y0rascal — Sat, 25 Apr 2020 12:31:33 GMT

Hi all. I opened up my Citi card and made a balance transfer. That balance transfer just ended on April 18, 2020, however I made another balance transfer for 1.99% APR for another balance. If I pay the remaining $36xx.00 balance of my expired balance transfer amount off of my $7+k balance, will that payment go to the expired balance transfer now regular APR balance?

Re: Should I pay off my Credit Card non balance transfer balance?

M_Smart007 — Sat, 25 Apr 2020 14:47:52 GMT

Citi might be the only one that could give you the exact answer.

Re: Should I pay off my Credit Card non balance transfer balance?

dragontears — Sat, 25 Apr 2020 14:49:15 GMT

@y0rascal wrote:
Hi all. I opened up my Citi card and made a balance transfer. That balance transfer just ended on April 18, 2020, however I made another balance transfer for 1.99% APR for another balance. If I pay the remaining $36xx.00 balance of my expired balance transfer amount off of my $7+k balance, will that payment go to the expired balance transfer now regular APR balance?

Should you pay off a 3.6k balance that is under "regular" APR? Yes as long as you can afford to

If you check your T&C it will specify exactly how your payments are applied to your account but in general (and in some aspects legally), your minimum payment gets applied first to interest and fees then to the APR balance that the lender chooses (most of the time it is the lowest APR but varies by lender). Any payment above the minimum will be applied to the balance with the highest APR (as specified in the CARD act). The only exception to this I am aware of is when you have an interest deferred balance, some times a lender will aautomatically apply to additional payments to balances that are about to expire.

Re: Should I pay off my Credit Card non balance transfer balance?

NRB525 — Sat, 25 Apr 2020 15:31:49 GMT

You left $3,600 on an expiring BT, then added on to it with a low APR BT?

Tactically that is not how I would do it. Clear the full APR amount first before starting a new BT cycle.

The payments on the card are applied as 1) minimum payment to the lowest APR, so $30 or so, then 2) applied to the highest APR. So you should be good to BT $3,600 to another card with minimal damage to the low APR balance you want to leave.

For data points, what is your utilization on this card right now?

Re: Should I pay off my Credit Card non balance transfer balance?

y0rascal — Sat, 25 Apr 2020 15:42:30 GMT

Yes I can pay it off, wanted to make sure it was worth it. I would open a new card but in the middle of refinancing now. Also 17% utilization