Can I use a Credit Card still in 0% BT period

tooblue on 23/01/2014 - 12:59

I applied for a new credit card and transfer the balance on the existing card to the new card. The BT rate is 0% for 12 months. Can I use the new card for purchase and still enjoy the 0% rate?

I know a few years ago all payments to the card will apply to the lowest rate balance first. So if I made a $100 purchase, a $100 repayment will never pay off the purchase until full BT balance is paid off, which mean I will have to pay the interest for the $100.

In last year or so, I don't know whether it is banks' own incentive or new regulation, some banks are applying the repayment to the highest rate balance first. Does it mean a $100 repayment goes directly to $100 purchase and leaves BT intact?

I phoned ANZ for this question they say repayment does apply to the highest rate balance first but I will need to pay interest for the purchase. I am confused.

Financial

Comments

  • ozhunter on 23/01/2014 - 13:49
    +2

    If you balance transferred from Card A to Card B, you can still use Card B(providing you haven't reached your limit) but you don't get any interest-free days and any purchases you make will be at the card's purchase interest rate.

    I'm pretty sure ANZ and NAB have the repayments applied to the balance with the highest interest rates.

    • John Dough on 24/01/2014 - 21:36

      Correct Answer.

  • postman on 23/01/2014 - 13:59

    BT and purchase have different rate, and in this case ONLY BT has 0% rate.

    If you make any purchase, its interest will get charged from the transaction date.
    Interest free day won't apply unless you pay off the whole balance on the card.

    It's better not to use the card during the BT period.

  • tonester on 23/01/2014 - 14:02

    Can I use the new card for purchase and still enjoy the 0% rate?

    as per @ozhunter above ^

    new regulation

    this - https://www.ozbargain.com.au/node/123330?page=9#comment-1793… :)

    Does it mean a $100 repayment goes directly to $100 purchase and leaves BT intact?

    yes

  • Geewhizz on 24/01/2014 - 07:36

    I think what the bank was saying is that you'll pay (a perhaps small amount of) interest on the amount of your purchase between when you actually buy the item, and when the amount is credited to your card. Something to perhaps ask the bank about is whether the purchase has to appear on a statement before your payment is applied to it, if that makes sense, or whether any payment you make after that point is automatically applied to it.

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