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CSP BT and new charges

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Valued Contributor

CSP BT and new charges

So I think that I already know the answer but wanted to confirm, sinc ethe woring can be confusing from one card to another.

 

Back in July i got a BT offer on the CSP, so I transferred $3,500 to buy some time since one was expiring. Unfortunately an online charge hit the account Sept 6th for a pre-order i had forgot that I evidently put on this card months ago. 

 

Since the charge hit the account after my most recent statement cut 8/24 due 9/21, do I have until the following statement due date 10/21 to PIF to avoid any interest? My due dates run the 21st, with statement cuts following the 24th. If so I'll wait till Oct to pay the rest, as I really didn't want to shell out $3600 this month. But if I have to I will. 

Thanks.

Message 1 of 7
6 REPLIES 6
Super Contributor

Re: CSP BT and new charges


@Janus wrote:

So I think that I already know the answer but wanted to confirm, sinc ethe woring can be confusing from one card to another.

 

Back in July i got a BT offer on the CSP, so I transferred $3,500 to buy some time since one was expiring. Unfortunately an online charge hit the account Sept 6th for a pre-order i had forgot that I evidently put on this card months ago. 

 

Since the charge hit the account after my most recent statement cut 8/24 due 9/21, do I have until the following statement due date 10/21 to PIF to avoid any interest? My due dates run the 21st, with statement cuts following the 24th. If so I'll wait till Oct to pay the rest, as I really didn't want to shell out $3600 this month. But if I have to I will. 

Thanks.


Usually you lose your grace period for purchases when you make the purchase on a card with a balance transfer.

 

 


Total revolving limits 719k (592500 reporting) FICO 8 scores: EQ 735 TU 782 EX 746
Message 2 of 7
Established Contributor

Re: CSP BT and new charges

My understanding is the new purchase is accruing interest the moment it hits your account. Although realistically, a small purchase probably does not inccur much interest in a month.

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Message 3 of 7
Moderator

Re: CSP BT and new charges

It happens.  Yes, you lost your grace period when the last statement was not paid in full.  But as long as it wasn't a huge purchase, you'll be fine as long as you pay at least the minimum amount due plus the new purchase(s) plus any interest that has accrued up to that point.  The interest will only accrue on the new charge(s).  It happens to a lot of us at some point.  Set up that annual $24.99 subscription for something and a year later when you're running a balance transfer, suddenly you get hit with $0.42 interest.  Smiley Wink

 

FWIW I have actually continued to purposely use cards at times even though there is no grace period if the rewards outweighed the interest that would be paid.  Also, keep in mind that you likely paid a 3-5% BT fee up front that might work out to a 36-60% APR if you only had the BT for a single month, so no need to pay it off to avoid what will likely be pocket change in interest; plus you earned some URs on your new purchase that should wipe out some or all of it anyway depending on how you ultimately redeem them.


Message 4 of 7
Valued Contributor

Re: CSP BT and new charges

So they won't charge backdated interest on the BT, but only interest on the new charge since the date it posted?

That's a relief. lol 

 

Since I already paid them $1600 a few days ago, that should take care if the minimum and the new charge right? 

I wasn't sure exactly how that worked or how they would apply the payement. So I guess I could have just paid them $600 like originally planned, but I paniced when the charge hit. Thinkin gthat now they would assess back interest from the moment the BT posted.

 

At any rate it will work out in my favor as I'm trying to get my util back down to under 8.9%, it had risen slightly to 10% because of an unexpected expenses. 

Message 5 of 7
Moderator

Re: CSP BT and new charges

Correct.  Your payment would be applied in the order of: minimum payment due to 0% balance, any new purchases, any interest/fees, remainder to balance starting with highest APR first (in this case your balance is all at 0%, but if you had say a 5.9% offer and a 0% offer the payment would be applied toward the 5.9% balance before going to the 0% balance).


Message 6 of 7
Valued Contributor

Re: CSP BT and new charges

Yeah, I also have a 6.99% offer on purchase until January. So the interest shouldn't be much at all compared to the standard 17.99% rate.

Message 7 of 7
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