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CC Payment allocation after a balance transfer

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IWOL
Established Contributor

CC Payment allocation after a balance transfer

I recntly took an offer on my B of A Cash Rewards card for balance transfer at 0% until December 2015.

 

I had an online  chat with B of A this morning regarding the allocation of payments to the card when you have an oustanding  balance transfer.

 

So the way payments are applied is:

 

The amount of the minimum payment is applied to the lowest rate amount and anything over the minimum is applied to the highest rate.

 

If my minumum payment is $50 and I pay say $500, $50 will be applied to the balance transfer amount and the balalnce of $450 would be applied to regular purchases.

 

Thought this i good information to know if you are doing a BT. Im not sure if all issuers work this way but atleast B of A does.

 


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1 REPLY 1
Cleanmachine
Frequent Contributor

Re: CC Payment allocation after a balance transfer

All payments to credit cards are the same as outlined by law.

 

As a side bar: it's not a good idea to make charges on a card with a zero balance transfer outstanding.

 

Some credit cards will charge interest from the date of purchase if you carry a balance, even with a zero balance transfer on the card.

 

Double check with the issuer before making charges.

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