No. of Recommendations: 0
KingNorris writes (with respect to CCCs applying payments toward low-interest promotional stuff before applying payments to high-interest recent purchases):
lower APR so I can leave Citibank after 12 years. This just seems like a total screw job to me.

I've had it happen with Fleet. I had first heard about it when my mother fell into a similar trap a few years ago. I think it is a fairly standard practice and you'll be hard-pressed to find a credit card company that won't apply payments in this fashion. The trick to these special APRs is to transfer a balance and, if you must use a credit card for a purchase, use a DIFFERENT credit card.

I recently took advatange of a 4.9% for the life of the debt offer. Unfortunately, it was from a card that I regularly auto-pay bills with. Before I did the balance transfer, I moved all my auto-bill pays to a different card so that no new charges would go on the card with the promotional APR. I then transferred all the balances I could to the card and subsequently took the card out of wallet and put it away so it is not used. That way, I really can take advantage of the special rate for a long time, just as promised. As far as I know, that's the only way to guarentee you'll get to keep that low rate and not get snagged into paying higher APRs.

I understand your frustration. This is a tough trap, but it's a learning experience. At least you can look forward to not getting burned in the future since you know what steps to take.

Good Luck!

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.