cancel
Showing results for 
Search instead for 
Did you mean: 

How do 0% balance transfers work when continuing to make normal purchases?

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Valued Member

How do 0% balance transfers work when continuing to make normal purchases?

I have never done a balance transfer before until a few days ago. I did 2.

1 to a brand new Amex card that offered 0% balance transfer fee + 0% APR for 15 months.

1 to my Fidelity Rewards 2% Visa that I have had for awhile that I got a 0% balance transfer apr offer until 4/2020.

 

I have the money to pay them off but I figured at 0% why not let them go for awhile a pay them off more slowely. 

 

But now I am confused exactly how it works. If I continue to use them for regular purchases (which do have a APR if i carried a balance), what do my payments go towards first? Lets say I have a $1000 0% balance transfer balance and I made $357 of regular purchases. If I make a payment of $357 will it go towards the purchases, and my balance transfer balance remains the same and at 0%, or do they apply it to the balance transfer first, meaning I would have to pay everything off to avoid interest? 

 

Thanks for any responces 

 

Message 1 of 14
13 REPLIES 13
Valued Contributor

Re: How do 0% balance transfers work when continuing to make normal purchases?

My advice would be not to use the cards for regular purchases until the zero balance transfers have been paid in full.

Chase Sapphire Reserve • PenFed Power Cash Rewards • and five cards in the sock drawer

No CC debt • No bonus chasing • No app sprees • No gift cards • No AZEO • No airline incidentals • No hotel cards • No store cards • No business cards • No authorized users
Message 2 of 14
Community Leader
Senior Contributor

Re: How do 0% balance transfers work when continuing to make normal purchases?

Yes I never use a card for purchases when taking advantage of a BT deal/deals.

 

I only use that card exclusively for the BT and put no other charges on it.

Message 3 of 14
Regular Contributor

Re: How do 0% balance transfers work when continuing to make normal purchases?

Thanks for the advice but does anyone care to actually explain how it works if you were to continue using the card? I had this quesiton as well and am curious if anyone has an answer.


Thank you

Message 4 of 14
Regular Contributor

Re: How do 0% balance transfers work when continuing to make normal purchases?

You dont pay intrest on the balance being transfered untile the promotion period ends but you will be charged intrest on normal purchase made with that card if not paid in full by the end of the billing cycle 


Image and video hosting by TinyPicImage and video hosting by TinyPicImage and video hosting by TinyPicImage and video hosting by TinyPic
Image and video hosting by TinyPicImage and video hosting by TinyPicImage and video hosting by TinyPic

Image and video hosting by TinyPic


Message 5 of 14
Frequent Contributor

Re: How do 0% balance transfers work when continuing to make normal purchases?

The credit card act requires any amount paid above your minimum payment to be applied towards the highest apr on the account. So in your case it would be 0% and let’s just say 19.99%. If minimum payment was $25 and you want to pay off $400 in charges you would want to pay $425 to be safe.

I’m not an expert on that but I do know that’s whatvthe act requires. The issuer might be able to confirm too.
Message 6 of 14
Established Contributor

Re: How do 0% balance transfers work when continuing to make normal purchases?

You can keep using amex, not sure about fidelity. Since both purchase and BT apr is 0 on amex, it doesn't matter which one get your payment. If you want to be sure certain balance get payment, you can call amex after payment and ask for "payment redirect".

 

I would never use a BT card for purchases when BT is not paid off, unless the purchase APR is also 0.

 

I learned a hard lesson from citi DC, when I used its BT offer, the BT off invalidated the default "payment grace period" offer (this statement is printed on the back of the letter and I never read it), which means whatever purchase I made immediately iccur interests. According to Citi, as far as I understand, my only solution for avoid interest is PiF BT and purchase right away.

 

I later made complaints to CFPB and twitter (lol), and they credited the interest back and I moved all my balance to cap 1, whose BT offer didn't have the crap citi had.

 

I am not sure if this is the same with fidelity, you want to check your offer's agreement carefully.

 

Ⳏroſilē oſ ᥠ chԑap, ſrēqⴑēnt ſlyԑr ✈⛽⛾ ⳎroⳎel ✈⛾ ८s ⛾⬮ ᦑold ☎ ८∰┊ iէ ⚕ ββⳎ
⛪ ▲G ┊ Ⲙileⴑp ┊८ſu ┊ ↇᏨ ┊ ēD ┊ q§ ⛎ ᐰmzn √/ᐰ ┊ wſ -√ ⛪ Ɲĕхт: ➕ citiⳎrēm ┊ βoſᥠ ८R
Message 7 of 14
Community Leader
Super Contributor

Re: How do 0% balance transfers work when continuing to make normal purchases?

Agree with others on the not using a card with bt as it can get complicated. I know some cards state that if you put on charges after the bt that those and entire balance have to paid in order to not get interest acrued or something to that nature. I may be wrong and apologize if so. Ive seen that language for inst as nce on Penfed and somewhere else i cant remember.
#ChaseCreditCardHobby Enthusiast
Message 8 of 14
Frequent Contributor

Re: How do 0% balance transfers work when continuing to make normal purchases?

This is where Capital One shines compared to other issuers.

 

They have a section on their statements that is called "Interest Savers Amount". It is the total amount that you need to pay by your due date to avoid interest. This is particularly nice when part of your balance is part of a 0% promotion.

 

I know for my Amazon store account when I have a promo I always pay the minimum payment due plus all current charges for the statement period and I have never paid interest.

Message 9 of 14
Super Contributor

Re: How do 0% balance transfers work when continuing to make normal purchases?


@sfustin90 wrote:

I have never done a balance transfer before until a few days ago. I did 2.

1 to a brand new Amex card that offered 0% balance transfer fee + 0% APR for 15 months.

1 to my Fidelity Rewards 2% Visa that I have had for awhile that I got a 0% balance transfer apr offer until 4/2020.

 

I have the money to pay them off but I figured at 0% why not let them go for awhile a pay them off more slowely. 

 

But now I am confused exactly how it works. If I continue to use them for regular purchases (which do have a APR if i carried a balance), what do my payments go towards first? Lets say I have a $1000 0% balance transfer balance and I made $357 of regular purchases. If I make a payment of $357 will it go towards the purchases, and my balance transfer balance remains the same and at 0%, or do they apply it to the balance transfer first, meaning I would have to pay everything off to avoid interest? 

 

Thanks for any responces 

 


My advice is never to use the card you have used for a balance transfer for purchases, because you will wind up losing your grace period and paying interest on the purchases.


Total revolving limits 719k (592500 reporting) FICO 8 scores: EQ 735 TU 782 EX 746
Message 10 of 14
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.