@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Wolf3, would you know which issuers apply payments above the minimum to the highest APR "features" first even before the new transactions in those feature categories show up on a statement? This makes a difference when revolving a promotional APR balance and deciding whether or not to make new purchases for bonus cash back. Being forced into paying interest on new purchases until the billing cycle closes (even if you overpay the minimum) is generally a dealbreaker, and it might help if we all knew who has what policy on this. Unfortunately, it looks to be CARD compliant either way, so the issuers can get away with the most favorable interpretation (to them).
TIA!
MIxing of features is confusing. The question is: Does the the no-interest grace period apply to purchases each month while carrying a balance on the deferred or low interest feature. I don't think the law specifies it, so it depends on the terms and conditions.
In the past, we have bought appliances from Sears with DW SearsMC and my memory is there was no interest on purchases during that time.
Here is the law on applying payments.
(b) APPLICATION OF PAYMENTS.—
‘‘(1) IN GENERAL.—Upon receipt of a payment from a cardholder, the card issuer shall apply amounts in excess of the minimum payment amount first to the card balance bearing the highest rate of interest, and then to each successive balance bearing the next highest rate of interest, until the payment is exhausted.
‘‘(2) CLARIFICATION RELATING TO CERTAIN DEFERRED INTEREST ARRANGEMENTS.—A creditor shall allocate the entire amount paid by the consumer in excess of the minimum payment
amount to a balance on which interest is deferred during the last 2 billing cycles immediately preceding the expiration of the period during which interest is deferred.
Thanks. In my experience this goes beyond the CC issuer's T&C. Almost the only card I can carry a low APR balance on and pay off new purchases as soon as they post is Discover, and they have very clear T&C saying that there is no grace on purchases if you did not pay off the entire prior statement balance. Almost, because I have a few Blueprint eligible Chase cards, for which this would also work, just in a different way. I did not experiment with CITI cards, but maybe there is hope there from what you are saying.
I just read the Citi Sears MC statement, the "How to avoid paying interest on purchases section".
It says for deferred interest, the grace period still applies to purchases. So if you pay the deffered interest portion and the PIF the purchases, no interest. IMO, that is a good deal.
However, other promotional offers may take away the grace period on purchases, and you have to read terms on the offers. Be careful there.
