@Credit12Fico wrote:I have a Bank of America 0% Purchase APR promo offer through Nov 22 for purchases that post by the end of August '21. I'm very confused on how to actually utilize it however. Anyone have any tips?
I typically put charges on the card, and pay off before the statement cuts. I want to leave a balance that qualifies for the promo on it, but I'd also like to use the card while I have the promo balance on it. As I see from the terms, it says:
Payments are allocated to posted balances. If your account has balances with different APRs, we will allocate the amount of your payment equal to the Total Minimum Payment Due to the lowest APR balances first. Payment amounts in excess of your Total Minimum Payment Due will be applied to balances with higher APRs before balances with lower APRs.
So does this mean that new charges which have not posted yet to a statement, will not get paid down before the Promo balance? Very confused. To me it seems that first the minimum payment on the promo balance will get paid, then the promo balance will get paid, and only then will a balance which has not yet posted to the statement get paid down. Is this correct?
Any charges put on the card after the cut off date will incur interest at the normal rate from the day of posting until they are paid off. Typically you would not use the card past the cut off date until the card is paid off in full. Each minimum payment will goto the promo balance and any excess to higher APR charges (which first have to post you cant AZEO them while running a promo balance),
@Credit12Fico wrote:I have a Bank of America 0% Purchase APR promo offer through Nov 22 for purchases that post by the end of August '21. I'm very confused on how to actually utilize it however. Anyone have any tips?
I typically put charges on the card, and pay off before the statement cuts. I want to leave a balance that qualifies for the promo on it, but I'd also like to use the card while I have the promo balance on it. As I see from the terms, it says:
Payments are allocated to posted balances. If your account has balances with different APRs, we will allocate the amount of your payment equal to the Total Minimum Payment Due to the lowest APR balances first. Payment amounts in excess of your Total Minimum Payment Due will be applied to balances with higher APRs before balances with lower APRs.
So does this mean that new charges which have not posted yet to a statement, will not get paid down before the Promo balance? Very confused. To me it seems that first the minimum payment on the promo balance will get paid, then the promo balance will get paid, and only then will a balance which has not yet posted to the statement get paid down. Is this correct?
Someone please correct me if I am wrong, but this is similar to my Best Buy card when I'm running a 0% promo for 6/12/18 months. The part I highlighted in red is what I see as the most important: payment goes towards higher APR first. So if you are running a $500 promo balance, and then buy something for $50, you need to make sure you at least pay $50 after your statement cuts so that you pay off the $50 before it accrues interest on the next statement. For example, if you pay $100 on that $550 total balance, $50 will go to the new purchase and $50 will come off the $500, dropping it to $450 left. The minimum payment won't go to the 0%/promo balance if you purchase something else during the statement period, since that new purchase is at a higher APR. You'll need to make sure you cover all additional purchases and your minimum amount to pay off your promo in time.
