Question
I hope it's o.k. to ask this question here, about credit card charges rather than reward programs. I usually don't carry a balance, but occasionally I've gotten an offer from a card I hardly ever use to transfer a balance at a low rate. If I could use it, I've done that to carry a balance for 2-3 months, and when I paid it off I overpaid in case finance charges would still be charged for the time between the billing date and time of payment. In these cases, as I recall, in fact there was not a finance charge for the last month. The last time I did this, I paid it off exactly and there was no finance charge.
Now I know that there are different indecipherable terms in the fine print, but I'll try asking about this. I have the Choice Privileges Visa from Bank of America. The first month, it helped me to pay it in part and use the intro rate of 1.9% or $1.50 minimum. In September I paid the full statement amount as soon as it posted online, but there were charges over Labor Day weekend that I'd made but weren't on that statement, and I guess for that reason (my balance never went to zero) I have another $1.50 charge this month. It isn't much, but I'd like it to clear before the higher rate kicks in. So I'll check that all charges have posted--I avoided end-of-month charges--and if I pay the whole balance and see online that my balance is zero or a credit, am I clear to make new charges this month and not have a finance charge? Or does it need to have a zero balance on next month's billing date?
Answer
Either over-pay your bill or phone customer service and ask how to get the finance charges to go away. My experience has been that it happens for one month and then clears.
Answer
Watch for a similar scam where if you respond to a low or 0% rate cash advance or purchase offer and then other charges subsequently hit your card (in my case it was a annual fee), the idiots will take your payments and apply it against the lowest % - while the interest charges pile up on the new charges. No way to stop it without paying off the entire card's balance.
Answer
Thanks, I e-mailed the question and got this:
Thank you for contacting Bank of America.
Our records show that as of October 21, 2006 your credit card account
number ending in xxxx will have a revolving balance. The revolving
balance is due to the Change in Terms that was included in your August
2006 credit card statement.
The revolving balance means that purchase finance charge will accrue
daily from the beginning of your billing cycle through the time your
payment is received in full.
Any variations in the terms explained in this e-mail will be superseded
by the terms and conditions that govern your account.
We appreciate the opportunity to assist you online. Should you have any
further inquiries, please e-mail us again.
I'm not getting what the bottom-line answer is. I may need to follow up with them, but I'll ask here: I am paying so that I'll have a credit balance. Does this message mean that I'll still have a finance charge this month? Does it make a difference if I start making charges again this month after I've verified that the balance is paid off?
Answer
The revolving balance means that purchase finance charge will accrue
daily from the beginning of your billing cycle through the time your
payment is received in full.
The question I would ask when you call back is if you accrue finance charge with a zero carry over balance on your card. The above quote is a scheme started a long time ago by the cc companies but it is unclear whether it is always applicable or only when there is a balance carryover. If its the former, you will never be without a finance charge if you used the card. If it's the latter, pay off the card (with or witout the slight credit balance) - get a zero statement and then use if each month and be sure to pay in full by the statement 'pay by' date.
Answer
the finance charge does not post until the statement close - therefore, you wont see it being reflected in your credit line.
Can't you not use this card, keep it in 0 balance, - the finance charge will STOP accruing when balance is 0 and NO NEW CHARGE, but what has already been accrued will remain, and then show up when statement close for the cycle - then pay off any finance charge when your statement close - that way, you will be sure there is NO MORE unpaid balance, due to the recurring finance charge, plus new finance charge occurred the minute you use your card.
Dont you realize if you have an unpaid balance - be it from purchase, or from unpaid finance charge, any new purchase will incur new finance charge the minute you charge it? This is almost like credit card 101.
Answer
Yes, I know that, but it's rarely come up for me because I rarely carry a balance, and if I do it's on a card I don't use for anything else. The question was whether the slate was clean once there was zero balance in the middle of the billing period, or I needed to wait for the next billing date. I guess I won't take chances and I'll put the card away until the next billing date. I would think they'd like me to use the card even if I don't carry a balance, and I'd regret not using it if I were staying in a Choice hotel, but this assures that I won't stay in one this month.