topic Re: Easy/Stupid Question - Sorry in Credit Cards

Easy/Stupid Question - Sorry

Anonymous — Wed, 02 Apr 2008 02:22:21 GMT

I can't remember or find why. But, why aren't you suppose to use a card with 0% a BT on it for regular periodic purchases? Can someone help me understand this...I use to know and now it simply escapes me...thanks in advance!

Re: Easy/Stupid Question - Sorry

Anonymous — Wed, 02 Apr 2008 02:25:14 GMT

Pj1369 wrote:
I can't remember or find why. But, why aren't you suppose to use a card with 0% a BT on it for regular periodic purchases? Can someone help me understand this...I use to know and now it simply escapes me...thanks in advance!

Because payments are applied to the lowest APR first. So that means they will be applied to the BT balance, and your $7 charge for Value Meal #1 will sit there month after month, accruing interest, because you won't be able to touch it until the BT is paid off completely.

In the end, even though you got a good deal on the BT, you paid an awful lot for that cheeseburger! This is how CCCs make their money on 0% BT offers, and it's what they expect you not to know or think about, so prove them wrong and don't do it!

Re: Easy/Stupid Question - Sorry

Anonymous — Wed, 02 Apr 2008 02:26:21 GMT

Some cards have promos 0 percent for BT's AND purchases and then it's ok to purchase too.

Some cards have promo 0 percent for BT's but regular APR for purchases, and lower APR's get paid first leaving your purchases to be unpaid each month generating interest.

BAD BAD BAD

Re: Easy/Stupid Question - Sorry

haulingthescoreup — Wed, 02 Apr 2008 02:29:57 GMT

And the other way that CCC's know that they will make money off of a fair amount of us: we don't discipline ourselves to pay the cards off before the 0% expires, or to save enough money elsewhere to pay it off in time.

DH was guilty of both: he put a car repair for a couple hundred bucks on the BT card (ka-ching, ka-ching), and he didn't get it paid off in time. Not the end of the world, he has a 9.99% rate, but between the two, plus the original BT fee, BofA is doing just fine off his business!

Re: Easy/Stupid Question - Sorry

Anonymous — Wed, 02 Apr 2008 02:32:16 GMT

Ohhh yeah - thanks all!!

Re: Easy/Stupid Question - Sorry

Anonymous — Wed, 02 Apr 2008 02:41:21 GMT

My HSBC Best Buy card will actually allow you to apply payments to different card plans. For example you could call them and tell them to apply the payment towards a higher interest purchase before the lower interest purchase.

But that's the only card I've ever seen that on.

Re: Easy/Stupid Question - Sorry

Anonymous — Wed, 02 Apr 2008 02:43:39 GMT

woopah wrote:
My HSBC Best Buy card will actually allow you to apply payments to different card plans. For example you could call them and tell them to apply the payment towards a higher interest purchase before the lower interest purchase.

But that's the only card I've ever seen that on.

GEMB CareCredit lets you do that, too.

Re: Easy/Stupid Question - Sorry

Anonymous — Wed, 02 Apr 2008 12:28:46 GMT

@haulingthescoreup wrote:
And the other way that CCC's know that they will make money off of a fair amount of us: we don't discipline ourselves to pay the cards off before the 0% expires, or to save enough money elsewhere to pay it off in time.

DH was guilty of both: he put a car repair for a couple hundred bucks on the BT card (ka-ching, ka-ching), and he didn't get it paid off in time. Not the end of the world, he has a 9.99% rate, but between the two, plus the original BT fee, BofA is doing just fine off his business!

that's why i move my balance around. It is so low now that the fee is about 30 bucks which is much better than a years worth of interest paid. they don't think we'll think of that either

Re: Easy/Stupid Question - Sorry

GST2008 — Wed, 02 Apr 2008 15:55:43 GMT

Let's not forget the BT fee. I just got an offer from one of my cards for 5.9% on BT's, and then you look at the fee which is something like 3% which I'm assuming goes in as a purchase. So now I have 5.9% a month plus a purchase of 3% of the total that accrues the regular interest.

Re: Easy/Stupid Question - Sorry

haulingthescoreup — Wed, 02 Apr 2008 18:55:25 GMT

@GST2008 wrote:
Let's not forget the BT fee. I just got an offer from one of my cards for 5.9% on BT's, and then you look at the fee which is something like 3% which I'm assuming goes in as a purchase. So now I have 5.9% a month plus a purchase of 3% of the total that accrues the regular interest.

I read a post by someone who said that there was a cap on her (his?) BofA BT, but that's the only time I've ever seen it. Most BT fees cap out at $75-99, but not BofA. On an $8K BT, I paid $240. If you take a year to pay off the balance, that's sorta like having 3% APR. Not bad at all, but certainly more than 0%.

Re: Easy/Stupid Question - Sorry

Anonymous — Thu, 03 Apr 2008 02:48:33 GMT

Yeah, I heard from BoA they are removing all BT fee caps for card users over the next year. Speaking of the devil, I just got my notice in the mail that my $75 fee is no more after June...there goes me ever using my BoA 5.9% APR card for BTs.

Re: Easy/Stupid Question - Sorry

BBYGRL — Thu, 03 Apr 2008 03:41:11 GMT

Good question and very helpful answers. It's easy to br blinded by the 0% BTs with the reg APR. I almost fell for it. Whew...

Re: Easy/Stupid Question - Sorry

Anonymous — Thu, 03 Apr 2008 03:50:23 GMT

@BBYGRL wrote:
Good question and very helpful answers. It's easy to br blinded by the 0% BTs with the reg APR. I almost fell for it. Whew...

Me too, lol! I almost fell for last night! - whewwww....hehe

THANKS ALL!

Re: Easy/Stupid Question - Sorry

Anonymous — Thu, 03 Apr 2008 03:51:22 GMT

@haulingthescoreup wrote:
@GST2008 wrote:
Let's not forget the BT fee. I just got an offer from one of my cards for 5.9% on BT's, and then you look at the fee which is something like 3% which I'm assuming goes in as a purchase. So now I have 5.9% a month plus a purchase of 3% of the total that accrues the regular interest.
I read a post by someone who said that there was a cap on her (his?) BofA BT, but that's the only time I've ever seen it. Most BT fees cap out at $75-99, but not BofA. On an $8K BT, I paid $240. If you take a year to pay off the balance, that's sorta like having 3% APR. Not bad at all, but certainly more than 0%.

I just did a BT with my BoA/FIA card which had a cap of $75 which I more than got to. I was hoping to do another BT nearer to the end of the year on another BoA card, but now I don't know.

Re: Easy/Stupid Question - Sorry

Anonymous — Thu, 03 Apr 2008 03:53:46 GMT

woopah - pay close attention to news in your cc statements...also, if you do online bank and changes will be pasted on a link next to your statement. And to play it extra safe call and confirm the fee and details on your account before doing a BT. Good luck!

Re: Easy/Stupid Question - Sorry

haulingthescoreup — Thu, 03 Apr 2008 10:15:11 GMT

@Anonymous wrote:

@haulingthescoreup wrote:
@GST2008 wrote:
Let's not forget the BT fee. I just got an offer from one of my cards for 5.9% on BT's, and then you look at the fee which is something like 3% which I'm assuming goes in as a purchase. So now I have 5.9% a month plus a purchase of 3% of the total that accrues the regular interest.
I read a post by someone who said that there was a cap on her (his?) BofA BT, but that's the only time I've ever seen it. Most BT fees cap out at $75-99, but not BofA. On an $8K BT, I paid $240. If you take a year to pay off the balance, that's sorta like having 3% APR. Not bad at all, but certainly more than 0%.

I just did a BT with my BoA/FIA card which had a cap of $75 which I more than got to. I was hoping to do another BT nearer to the end of the year on another BoA card, but now I don't know.

I think this is an indication that DH and I don't have primo BofA cards! Good to know that they have had caps, although it looks like from an earlier post that this is being phased out for everyone...