Credit Cards

Interest: when Balance Transfer + Purchases at the same time

  • Last Updated:
  • May 2nd, 2019 10:32 pm
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[OP]
Newbie
Oct 10, 2018
54 posts
7 upvotes

Interest: when Balance Transfer + Purchases at the same time

Was reading the terms of a credit card:-

''You will pay interest on purchases unless you pay your full Account balance by the payment due date. For example, if you complete a balance transfer for $300 and spend $200 in purchases during the same statement period, you must pay the entire balance of $500 before the payment due date to avoid paying interest on your purchases. You will be charged interest if you only pay the amount owing for your purchases.''

Shouldn't the $300 be charged at % applicable to balance transfer rate and $200 be charged at % applicable to purchases.
Why it is saying $500 needs to be paid to avoid interest on purchases when someone may pay in full the $200 used for purhase and continue using the $300 as balnce transfer ?
3 replies
Deal Guru
User avatar
Mar 23, 2008
11906 posts
8170 upvotes
Edmonton
MyNameIsJeff wrote: Was reading the terms of a credit card:-

''You will pay interest on purchases unless you pay your full Account balance by the payment due date. For example, if you complete a balance transfer for $300 and spend $200 in purchases during the same statement period, you must pay the entire balance of $500 before the payment due date to avoid paying interest on your purchases. You will be charged interest if you only pay the amount owing for your purchases.''

Shouldn't the $300 be charged at % applicable to balance transfer rate and $200 be charged at % applicable to purchases.
Why it is saying $500 needs to be paid to avoid interest on purchases when someone may pay in full the $200 used for purhase and continue using the $300 as balnce transfer ?
Their card, their rules. Don't like them, don't use the card.
masterman wrote: Just don’t mix the two, period
And this...

C
Deal Guru
User avatar
May 8, 2009
14089 posts
11740 upvotes
Not Leask
masterman wrote: Just don’t mix the two, period
CNeufeld wrote: Their card, their rules. Don't like them, don't use the card.
And this...

C
+1k

Don't mix the two. Payments will proportionally pay down the balance transfer balance and the spend balance. Unless you pay statement balance down to $0, you'll incur interest on the spend balance. If it's already a low interest card, it may not seem so bad, but there's really none a good reason to do this.

Use some cards for BT's and other cards for spend. Got a BT offer you like on one of your spend cards? Pay the card down to $0, wait at least one billing cycle, then BT. Then drawer the card, "no touchey" until BT paid off.
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