Balance Transfer Question!

Anonymous · ‎09-17-2014

Hi, so I requested a balance transfer onto my Discover IT for Students card. It's been processed and now shows up on my account, and has an 6-month intro APR of 10.99%.

But I also have a balance from my usual purchases, that has a 6-month intro APR of 0%.

Now, the two are just showing up as one whole balance for my account, instead of two separate balances as I thought it would. My question is, if I make a payment, would that go towards my Balance Transfer balance or just my general account balance? Because I obviously want to pay off the Balance Transfer amount first.

Any and all help is much appreciated!

Thanks in advance!

Ashhh1991 · ‎09-17-2014

You'd have to take a look at the credit card agreement to get an actual answer. Answer differs by credit card issuer.

But I looked this up a while ago and discovered this (I could be wrong):

Assume, your minimum payment is $35 and you pay $100.

The minimum payment, $35 will be applied to the balance with the lowest APR (which is the one with 0% APR). The rest, $65 will be applied to the balance with the highest APR (which is the one with the 10.99%).

Look at "How we apply payments" here: https://www.discover.com/credit-cards/cardmember-agreement/payments.html

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takeshi74 · ‎09-17-2014

Definitely read the terms but the CARD Act specifies how payments have to be allocated for consumer cards. Payments above the minimum must be applied to higher interest balances.

@Anonymous wrote:
Now, the two are just showing up as one whole balance for my account, instead of two separate balances as I thought it would.

It shows up that way online but your statement will break it down for you.