Tips to avoid interest on purchases made after BT!

[lhcole77]

I  don't think this is the case at BofA. They apply minimum payment to lowest APR, then rest of payment to highest APR.

Edit: I may have misread previous comments. Oops.

[trumpet-205]

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@lhcole77 wrote:

I  don't think this is the case at BofA. They apply minimum payment to lowest APR, then rest of payment to highest APR.

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That's how every personal credit card is handling the payment. It is part of the CARD Act.

The only way to avoid paying interest on purchases on a card that is carrying BT is to pay off the purchase amount + minimum payment on day 1. Remember without grace period interest is calculated from day 1.

[lhcole77]

Gotcha! Thanks, trumpet.

[Anonymous]

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@lhcole77 wrote:

I  don't think this is the case at BofA. They apply minimum payment to lowest APR, then rest of payment to highest APR.

Edit: I may have misread previous comments. Oops.

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Chase actually follows the same methodology of first applying the minimum payment to the lowest APR (Balance Transfer) and then to the highest APR (Purchases). 

[lhcole77]

I guess I've always just interpreted this as it not being a good idea to use a balance transfer card and make purchases at the same time because the majority of the payment would go to pay off purchases, leaving the balance transfer amount, resulting in not being able to pay that down within the promo period. And then before you know it your 12, 15 or 18 months at 0% is over and you still have a balance from the original BT offer.