Earlier this year I took a very low interest balance transfer (Discover).
I forgot about an annual subscription that I have on that account (158.00)which has been charged.
I think in the old days if you put a charge on a balance transfer all payments would be allocated to the lowest interest rate and the purchase rate would just sit there and accrue on the new charge.
Isn’t it now the minimum payment goes to the lowest rate and any excess payment(s) goes to the higher rate ?
I am paying total balance in December anyway but was wondering.
Always pay off the highest interest acct first, and eventually reach the point where you pay off your new charges every month (no carrying a balance).
That’s the thing. Most credit card balance transfers process the low/no interest balance first…anything other than the promotional charge just accrues interest at the higher rate. It’s no big deal if the promotional balance is close to being paid off, but if it’s early in the process, then any other charges will continue to accrue interest until the promotional balance is paid off. But I have used them to pay off a special home project. If I do, I do the balance transfer and freeze that card so nothing accidentally posts.