topic Re: Amazon Financing in Credit Cards

Amazon Financing

XxRaVeNxX — Thu, 29 Nov 2012 15:05:39 GMT

So, I was looking at the amazon forums, and it's pretty much people who say the amazon credit card is a scam, from people who state they didn't receive their statements, they can't figure out how to pay, to they thought 6 months interest free meant no payments at all for six months. You know the usual crazy stuff. So, instead of asking there, real quick question...

1. When you do the 6-12 month financing, and start paying on it. Few months later, while still paying on it, you get something else.How do you know that your payment is going towards your financing portion and not the new item. Will the minimum payment on the statement reflect this or both items?

2. Also, I'm going to do 99.99% of my Christmas shopping on Amazon, to the point where I'll be close to maxing out my Card. (It's only about $800) Should I send them a secured e-mail, to let them know my intention. I just don't want them(to do like I see so many others) to drop my limit due to maxing my card.

Thanks

Re: Amazon Financing

Repo-ed — Thu, 29 Nov 2012 15:07:55 GMT

balance is a balance is a balance. You still owe it. They'll just deduct your finance offer purchase out of the balance, at time % should be applied from other purchases.

Re: Amazon Financing

distantarray — Thu, 29 Nov 2012 15:08:53 GMT

citi forward 5% amazon and 5% restaurants movie tickets bookstores (which amazon is classified as) 0% interest for 12 months $100 sign up bonus after spending $650

Re: Amazon Financing

XxRaVeNxX — Thu, 29 Nov 2012 15:10:21 GMT

@Repo-ed wrote:
balance is a balance is a balance. You still owe it. They'll just deduct your finance offer purchase out of the balance, at time % should be applied from other purchases.

Not what I asked. I trying to make sure payments are made correctly so that it stays in the current financing timeframe and they dont try to hit me with the interest

Re: Amazon Financing

jsickz32 — Thu, 29 Nov 2012 15:12:59 GMT

I dont know a exact response to your question but every time ive used the 6/12/18 months 0% offers I make sure I dont use that card until I pay off whatever I bought. That what I dont have to worry about what you are asking

Re: Amazon Financing

tray — Thu, 29 Nov 2012 15:24:59 GMT

Was you interested at all with the Amazon visa card as I see you already have a account with Chase $5,000 limit, this holiday season Amazon is giving out a $50.00 gift certificate with the apping for the Visa , you probably would have been approved with a high limit since you already have a chase account.?

Re: Amazon Financing

XxRaVeNxX — Thu, 29 Nov 2012 15:56:29 GMT

I preferred the Store Card for the 0% financing that they offer on all their products, all year round even from third party sellers..

Re: Amazon Financing

dude11 — Thu, 29 Nov 2012 16:12:53 GMT

I don't know how they apply the payments when you have more than one promotional offer on there. What I do know is that if you look at your statement it will show you your promotional purchase summary of all the promotional offers you have at the time. If you look at one statement and then the next months statement you can somewhat figure out how much of your payment is being applied to the promotions.

Also online under Statements there is a Promotional Summary option that shows you the balances and expiration dates including accrued interest. Hope this helps!

Re: Amazon Financing

Anonymous — Thu, 29 Nov 2012 16:25:18 GMT

Your payment gets applied to the promotional purchase FIRST, thus any additional purcheses you make will generate interest charges.

This is how they get you. So if you're going to make a large promo purchase either resolve to retire the card until that is paid off or know you're going to pay interst on new purchases.

Re: Amazon Financing

XxRaVeNxX — Thu, 29 Nov 2012 16:31:07 GMT

@Anonymous wrote:
Your payment gets applied to the promotional purchase FIRST, thus any additional purcheses you make will generate interest charges.
This is how they get you. So if you're going to make a large promo purchase either resolve to retire the card until that is paid off or know you're going to pay interst on new purchases.

Thanks! If this is true...you answered my question...

Re: Amazon Financing

aussiesareforever — Thu, 29 Nov 2012 16:48:54 GMT

@XxRaVeNxX wrote:
@Anonymous wrote:
Your payment gets applied to the promotional purchase FIRST, thus any additional purcheses you make will generate interest charges.
This is how they get you. So if you're going to make a large promo purchase either resolve to retire the card until that is paid off or know you're going to pay interst on new purchases.
Thanks! If this is true...you answered my question...

I am almost pretty sure that with the new credit card act, any payment gets applied to the balance with the HIGHER interest rate first. If your promotional purchase is still at 0%, they should apply the payment to any other purchases with a higher interest rate. I would definitely call them to verify but I think that should be the case.

Re: Amazon Financing

aussiesareforever — Thu, 29 Nov 2012 16:53:22 GMT

P.S I forgot to specify that this applies to payment ABOVE your minimum payment.

The credit card company can decide to apply the minimum payment whereever they want but ANY payment above the minimum MUST be applied to the highest interest balance FIRST

The other exception is the last two billing cycles of a deferred interest balance. All payments made during the last two billing cycles will be applied to that deferred interest balance

Re: Amazon Financing

SpiceIslander — Thu, 29 Nov 2012 16:52:50 GMT

@XxRaVeNxX wrote:
@Anonymous wrote:
Your payment gets applied to the promotional purchase FIRST, thus any additional purcheses you make will generate interest charges.
This is how they get you. So if you're going to make a large promo purchase either resolve to retire the card until that is paid off or know you're going to pay interst on new purchases.
Thanks! If this is true...you answered my question...

Per the CARD act, the payment amount that's OVER the minimum gets applied to the balances(s) with the highest rates. If you only pay the minimum, it will get applied to the promo only. The piece below is from creditcarddotcom in direct reference to this:

Highest interest balances paid first: When consumers have accounts that carry different interest rates for different types of purchases (i.e., cash advances, regular purchases, balance transfers or ATM withdrawals), payments in excess of the minimum amount due must go to balances with higher interest rates first. A common practice in the industry had been to apply all amounts over the minimum monthly payments to the lowest-interest balances first -- thus extending the time it takes to pay off higher-interest rate balances.

Re: Amazon Financing

Anonymous — Thu, 29 Nov 2012 17:12:08 GMT

@Anonymous wrote:
Your payment gets applied to the promotional purchase FIRST, thus any additional purcheses you make will generate interest charges.
This is how they get you. So if you're going to make a large promo purchase either resolve to retire the card until that is paid off or know you're going to pay interst on new purchases.

This right here answers the OP's question.

Re: Amazon Financing

aussiesareforever — Thu, 29 Nov 2012 17:35:50 GMT

Hope this helps OP about the payment allocation. I looked it up and it is true that any payments over the minimum gets applied to the highest interst rate first.

http://www.bankrate.com/financing/credit-cards/clarification-on-payment-allocation-rule/

Re: Amazon Financing

Sparkz1920 — Thu, 29 Nov 2012 17:37:56 GMT

@XxRaVeNxX wrote:
@Repo-ed wrote:
balance is a balance is a balance. You still owe it. They'll just deduct your finance offer purchase out of the balance, at time % should be applied from other purchases.

Not what I asked. I trying to make sure payments are made correctly so that it stays in the current financing timeframe and they dont try to hit me with the interest

Just to be on the safe side, Id just make sure that the balance from the financing is paid in full on the 6th month...The rest of the balance from other purchases should not be affected as long as you paid the 800 by month 6, the other 300 or so that you rack up should just be on regular interest and they should be able to tell.