Discover Balance Transfer

[ddf]

I know there has been a lot of discussion on this, but I just got off the phone with Discover, I have several balance transfers, one 2.99%, one 0%, In looking at my statement, obviouly in Discovers favor, if my minimum payment is say $300.00, and I pay $500.00, $300 goes to the 0% BT (not the first one to expire at 2.99%) then the remaining goes to the 2.99%. If you were to make only the minimum, it is applied to the 0%, interest is not paid but added onto the 2.99% BT, so you are paying interest on interest. How can this be anything but dicetful. Card Argreement states they apply as the darn well feel. Just a FYI for those who think Discover is the best deal, other transfers I have been assocatied with apply the payment to the BT that expires first.

[RSX]

agree it sucks - but this is why most people only do 1 BT on a card at a time - and do not use the card for any purchases until the BT is paid off

not just for Disco - these are good rules for all cards, to avoid paying any (extra) interest

[AzCreditGuy]

No offence but doing 2 BTs on the same card with different terms is just not financially savvy. The BT fee that they do for 5% is the only thing you should be paying down and not deceitful if you understand the terms and how they work.

Citizens is deceitful, the BT fee they charge you must be paid off on the 1st statement it appears or they will charge you interest on this BT fee. Discover at least tell you upfront and Citizens don’t.

[ptatohed]

Per the Card Act, the minimum can be applied to any balance the lender chooses which, obviously, will usually be the lowest interest rate.  Anything in excess of the minimum has to go toward the highest interest rate.   

[SouthJamaica]

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@ddf wrote:

I know there has been a lot of discussion on this, but I just got off the phone with Discover, I have several balance transfers, one 2.99%, one 0%, In looking at my statement, obviouly in Discovers favor, if my minimum payment is say $300.00, and I pay $500.00, $300 goes to the 0% BT (not the first one to expire at 2.99%) then the remaining goes to the 2.99%. If you were to make only the minimum, it is applied to the 0%, interest is not paid but added onto the 2.99% BT, so you are paying interest on interest. How can this be anything but dicetful. Card Argreement states they apply as the darn well feel. Just a FYI for those who think Discover is the best deal, other transfers I have been assocatied with apply the payment to the BT that expires first.

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1. Sorry, but I don't see how that is "paying interest on interest".

2. True it's not nice, but I don't see how it can be considered "deceitful" if it's fully disclosed in the Card Agreement.