Does anyone know how their deferred payment special financing works with just regular purchases?
For example, let's say I have $200 on regular purchases and I have a $500 purchase on special fianncing where I don't pay any interest for 6 months. When I pay my card which one does it automatically pay off first? The regular purchase or the special financing purchase? Also, what happens when you have two special financing purchases at once? Which one gets the payment first?
Good question. In most of these cases that I've seen in the past, the result that best suits the creditor is what tends to be the case. I would tend to think that your payment would go toward your regular purchases first, as to keep the special promo purhase going as long as possible in hopes that you won't be able to pay it off in time and thus get hit with the interest.
It's not always possible, but when I have a promo or a BT running, that card gets locked inside a box and then put in the safe.
I hate accidental mix-ups
Lowe's is Synchrony and set up exactly the same as Amazon, which rmduhon listed. For the three options, it would work like this with a $1000 promotional balance, $500 in new purchases and $500 payment with $25 minimum payment due:
1.) (Default) $25 to promotional balance and $475 to new purchases (would carry over $25 with interest due next statement), unless last 2 months before expiration then $500 to the promotional balance.
2.) $500 to promotional balance and nothing on new purchases (would carry over $500 with interest due on next statement(.
3.) $500 to the new purchases and nothing on the promotional balance. If the payment were $1000 or more, then your promo balance would be paid in full if this is the final statement period for the promo.
You can change these at will and Synchrony will send you a letter in the mail reminding you that you have done so. With the typical high APRs, I can't really think of a scenario where #2 makes sense. In the above scenario, with a $1000 payment in the last month #2 and #3 are the same. A $500 payment in the last month means #2 and #3 would also be the same and result in you getting charged ALL of the interest that had accrued on the original balance (let's say $5000 for 0% at 24 months - at 20%, that's $2000 in interest!). I guess maybe it would make sense if you knew you could make two $500 payments the last 2 months, but then again that's the same as how #1 would work anyway. Am I missing something?
I'm not too sure about regular purchases on a Home Depot card because I only use it for special financing. I currently have 3 purchases that I'm paying off at 0% interest. One expires in June this year, another in December, and the final one in June of next year. Everything is currently automatically going towards the promotional balance that will expire first (this June).