I just got the citi double cash card with 0% apr on balance transfers. My question is, if I transfer a balance and still use the card to make new purchase; will I start occurring interest on those new purchase immediately since I have a balance transfer balance? I always pay my balance at pay period to avoid interest. Thanks for the insight.
Posted by knd578
3 Comments
When you have balance transfer on card the new purchases usually get different payment allocation so even if you pay full statement balance the BT portion might still be there collecting interest after promotional period ends
From what I understand, since I have a BT balance then any new purchase start occurring interest immediately instead of after the statement balance.
If you transfer a balance and subsequently use the card for purchases, your purchases will accrue interest immediately unless you pay the entire statement balance in full. It is for that reason alone that you should never put anything else on the card you intend on transferring to. Transfer the balance, enjoy 0%, and pay the minimum until the promo expiration date, at which point you would pay the remaining balance in full to avoid getting slammed with 12+ months of deferred interest at 18.5+%.