Can Credit Card Balance Transfer Change Interest Rate?
Author: Midnight
Posted: Mon Feb 09, 2004 3:54 pm
Post subject: Can Credit Card Balance Transfer Change Interest Rate?
I carry two balances on my GE Select credit card. One is for purchases the other for cash advances.On my January 2003 statement the balance on cash advance was $100.79 with 8.76% interest rate.For purchases it was the same rate. The interst rate was the same on both balances until
July when I took advantage of their offer to transfer higher interest rate balance for the life of the balance with the interest rate of 5.99% On the
August statement there was a change. Purchases 9.99% Cash advance from 8.38% changed to 19.99% and is holding there.
I paid on the account during the year of 2003 $3.350 but not a single penny of this payment was applied to the cash advance balance.
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Author: Polonius
Posted: Mon Feb 09, 2004 4:48 pm
Post subject: Can Credit Card Balance Transfer Change Interest Rate?
The rate change you mention may have something to do with the balance transfer offer you accepted, or it may not--but you have to be informed of any rate changes. It's not rare for a balance transfer offer to give a rate good for, say, 6 months--and to say very clearly that after that period, a new rate will apply for purchases, cash advances, and unpaid parts of that balance transfer.
And it's absolutely standard for your payments to be applied to the LOWEST-interest-rate balances FIRST. That's one way banks nail you. I was pretty upset to see that the balance transfer fee of $50 is regarded as a purchase, not a finance charge, by some banks, so that as I pay down the 1.99% rate on the balance transfer I was given, the $50 fee for it gets charged at 13.9% or whatever and never gets paid until the whole balance transfer is paid off. Sigh.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Guest
Posted: Mon Feb 09, 2004 4:49 pm
Post subject: Can Credit Card Balance Transfer Change Interest Rate?
Midnight wrote:
I carry two balances on my GE Select credit card. One is for purchases the other for cash advances.On my January 2003 statement the balance on cash advance was $100.79 with 8.76% interest rate.For purchases it was the same rate. The interst rate was the same on both balances until
July when I took advantage of their offer to transfer higher interest rate balance for the life of the balance with the interest rate of 5.99% On the
August statement there was a change. Purchases 9.99% Cash advance from 8.38% changed to 19.99% and is holding there.
I paid on the account during the year of 2003 $3.350 but not a single penny of this payment was applied to the cash advance balance.
Payment allocation of your payments is most likely going to the 5.9% balance first..in the meantime your old balances will continue to collect interest at the higher rates.. You may want to read the terms and agreements, it should state how the payments are applied.. Good luck
Posted: Mon Feb 09, 2004 3:54 pm
Post subject: Can Credit Card Balance Transfer Change Interest Rate?
I carry two balances on my GE Select credit card. One is for purchases the other for cash advances.On my January 2003 statement the balance on cash advance was $100.79 with 8.76% interest rate.For purchases it was the same rate. The interst rate was the same on both balances until
July when I took advantage of their offer to transfer higher interest rate balance for the life of the balance with the interest rate of 5.99% On the
August statement there was a change. Purchases 9.99% Cash advance from 8.38% changed to 19.99% and is holding there.
I paid on the account during the year of 2003 $3.350 but not a single penny of this payment was applied to the cash advance balance.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Mon Feb 09, 2004 4:48 pm
Post subject: Can Credit Card Balance Transfer Change Interest Rate?
The rate change you mention may have something to do with the balance transfer offer you accepted, or it may not--but you have to be informed of any rate changes. It's not rare for a balance transfer offer to give a rate good for, say, 6 months--and to say very clearly that after that period, a new rate will apply for purchases, cash advances, and unpaid parts of that balance transfer.
And it's absolutely standard for your payments to be applied to the LOWEST-interest-rate balances FIRST. That's one way banks nail you. I was pretty upset to see that the balance transfer fee of $50 is regarded as a purchase, not a finance charge, by some banks, so that as I pay down the 1.99% rate on the balance transfer I was given, the $50 fee for it gets charged at 13.9% or whatever and never gets paid until the whole balance transfer is paid off. Sigh.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Guest
Posted: Mon Feb 09, 2004 4:49 pm
Post subject: Can Credit Card Balance Transfer Change Interest Rate?
Midnight wrote:
I carry two balances on my GE Select credit card. One is for purchases the other for cash advances.On my January 2003 statement the balance on cash advance was $100.79 with 8.76% interest rate.For purchases it was the same rate. The interst rate was the same on both balances until
July when I took advantage of their offer to transfer higher interest rate balance for the life of the balance with the interest rate of 5.99% On the
August statement there was a change. Purchases 9.99% Cash advance from 8.38% changed to 19.99% and is holding there.
I paid on the account during the year of 2003 $3.350 but not a single penny of this payment was applied to the cash advance balance.
Payment allocation of your payments is most likely going to the 5.9% balance first..in the meantime your old balances will continue to collect interest at the higher rates.. You may want to read the terms and agreements, it should state how the payments are applied.. Good luck
posted by CardRatings.com at 9:42 AM
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