Bill me Later and Deferred interest Payments?

[chan85]

I have a bill me later account with about $500 on it, of that about $150 is in the deferrred interest program. I know how payments are posted and such changed with the CARD act, but just want to get clarification again.

If I make a payment over my minimum ($35), which balance does the extra amount go to- the deferred interest or the remaining charges that are accruing interest?? I want to pay off the charges that are accruing interest and take full advantage of the deferred interest program.

[bichonmom]

I don't remember which one the payment goes to. But they told me that I could (had to, actually) call them after I made the payment online if I wanted to change how/where the payment was applied. Your best bet is to give them a call after you make your payment to be sure the money is applied where you want.

[pastnow123]

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@chan85 wrote:

I have a bill me later account with about $500 on it, of that about $150 is in the deferrred interest program. I know how payments are posted and such changed with the CARD act, but just want to get clarification again.

If I make a payment over my minimum ($35), which balance does the extra amount go to- the deferred interest or the remaining charges that are accruing interest?? I want to pay off the charges that are accruing interest and take full advantage of the deferred interest program.

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one thing you need to make sure is whether the deferred interest continues arrcuing interest on it. If yes, it wouldn't make difference to pay down deferred interest or principal first.

[Anonymous]

After the CARD Act the minimum monthly payment is applied at their discretion (Lowest interest or 0 interest offer. All money paid above the minimum must got to the highest interest balance in the case of multiple interest rates on the account. So if you have a 0% BT and a 12% purchase balance on the same card - the minimum goes to the 0% and the remainder to the 12%.

[chan85]

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@pastnow123 wrote:

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@chan85 wrote:

I have a bill me later account with about $500 on it, of that about $150 is in the deferrred interest program. I know how payments are posted and such changed with the CARD act, but just want to get clarification again.

If I make a payment over my minimum ($35), which balance does the extra amount go to- the deferred interest or the remaining charges that are accruing interest?? I want to pay off the charges that are accruing interest and take full advantage of the deferred interest program.

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one thing you need to make sure is whether the deferred interest continues arrcuing interest on it. If yes, it wouldn't make difference to pay down deferred interest or principal first.

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ummm huh? lol if its deferred why would it continue to accrue interest? im confused by what you mean....can you please explain?

[chan85]

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@Anonymous wrote:

After the CARD Act the minimum monthly payment is applied at their discretion (Lowest interest or 0 interest offer. All money paid above the minimum must got to the highest interest balance in the case of multiple interest rates on the account. So if you have a 0% BT and a 12% purchase balance on the same card - the minimum goes to the 0% and the remainder to the 12%.

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ok thats what i thought, just wanted to be sure! thanks!!

[Creditaddict]

When you have a 0% on a credit card for 3,6,12,18,24 (whatever it is depending on card and company) say you put $1000 on the 0% and the regular interest rate off of the 0% offer is 10%.  While you pay on the 0% balance it will continue to calculate the interest off to the side at whatever that interest is (in this case we are saying 10%.

If you fail to pay the ENTIRE balance on the 0% before the term is up you will see the "deferred" interest bill to your account.

Further more if you put $1k on 0% and charge another $1000 at regular APR, say 10%.

You have a minimum of $50, if you pay $60, for simple numbers we will say the min. is $25 on each, you will see the $25 come off both balances but then that extra $10 you paid will go to the 10% balance.

Usually you can call in as someone mentioned and ask them to move the payment over to the 0% or I believe the last 2 month sof a 0% that you still have a balance on "ALL" of your payment will go to that 0%.

[chan85]

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@Creditaddict wrote:

When you have a 0% on a credit card for 3,6,12,18,24 (whatever it is depending on card and company) say you put $1000 on the 0% and the regular interest rate off of the 0% offer is 10%.  While you pay on the 0% balance it will continue to calculate the interest off to the side at whatever that interest is (in this case we are saying 10%.

If you fail to pay the ENTIRE balance on the 0% before the term is up you will see the "deferred" interest bill to your account.

Further more if you put $1k on 0% and charge another $1000 at regular APR, say 10%.

You have a minimum of $50, if you pay $60, for simple numbers we will say the min. is $25 on each, you will see the $25 come off both balances but then that extra $10 you paid will go to the 10% balance.

Usually you can call in as someone mentioned and ask them to move the payment over to the 0% or I believe the last 2 month sof a 0% that you still have a balance on "ALL" of your payment will go to that 0%.

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Oh ok, I understand that. i see the interest accuring on my statement, I just thought the other post was saying I was somehow still getting charged interest that was adding to the balance currently, not in the future.

I will have it paid before the 6 months. I have until August and September on my current offers, and I learned the hardway once on not paying the balance in full for deferred interest on my Care Credit card once so I will NEVER do that again!!