Friends,I have a Chase card on which I have a balance of about $ 9500.00 out of which about $4500.00 carries an interest of 17.99% and the rest $ 5000.00 carries a rate of 9.9% because the bank offered me a balance transfer option with that rate locked for the life of that loan.Only after reading on this forum about how the repayments are applied I opened up my folder and had a close look at the last bill. Do you know what I have seen ?I made a payment of $ 1200.00 in February 99. Out of this $ 1150.00 has gone towards my balance transfer with 9.9% rate and only $50.00 went towards my purchases having 17.99% !!!!They were correct, I will be paying back for MY life, not the loan's, at that rate.Am I being cheated? Can anything be done ? I never read those fine prints, man!But, thanks to this board, I am learning.regards.
DHOLAI: You wrote, "Am I being cheated? Can anything be done ? I never read those fine prints, man!But, thanks to this board, I am learning." Although it was buried in the fine print, the bank is not doing anything other than what it told you; I understand while you feel cheated, but it is not necessarily the bank's fault. Glad to know that you are learning to read the fine print. You probably will not make this mistake again. One plan, if you can, would be to transfer the entirety of this balance, both the 9.9% part and 17.99% part to another card that currently has a zero balance and was offering a good rate for balance transfers, preferably without a 2-3% transfer fee. Virtually every credit card I have read applies payments to the promotional rate items - the portion earning the credit card company the lowest return. I never transfer a balance to a card that already is carrying a balance. Regards, JAFO
I never read those fine prints, man!But, thanks to this board, I am learning.Dholai,Yes, you're learning, and that's great!I can't say it enough times, nor loud enough...Everyone has GOT to read ALL of the fine print when accepting a new account or transferring a balance. Knowledge is power, and if it means getting a magnifying glass, go get one. Don't let any of these offers turn out to be unpleasant surprises. :)Tony...but I still am...Off2Aruba
Just to add a bit to the previous replies, even if you did not read the fine print, you know the bank ain't Santa Claus. Therefore, you know that payments will be applied in such a manner as will maximize the bank's income. I bet if you were the bank, you would do the same thing too. I would, and I am even a fairly nice person.
When I was doing the credit card shuffle several years ago I sent a note with each payment over the minimum required.EXAMPLE:Please find enclosed a check for the amount of $XXXX.XXThe minimum payment for this month is $YY.YY Please apply the amount over the minimum payment ($ZZZZ.ZZ)to (which ever portion of your bill you want to pay of first).END EXAMPLEI do not know if the rules have changed but this always worked for me. (Even when the fine print said the extra would be applied to the transfered amount.)Good Luck,Davis007
To JABoa,Respectfully, I disagree. I would expect you to apply the payments proportionately based on the balance in each category.If I borrowed money,it does not mean that the bank should bahave as the Shylock. They might end up paid like the Shylock.
DHOLAI, I guess I am a bigger meanie than I thought I was.Cheers,JABoa
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