Pro question on credit card BT and minimum spend criteria

[Deactivated] on 13/05/2017 - 16:49

Hi guys,

I've noticed that it takes a couple of days for the banks to initiate BT. Is it possible to meet the minimum spend requirements for introductory bonuses AND pay it back before the bank do the BT?

So, Day 1 since activation of new credit card, I purchase a 3k item and in the same day I pay the credit card 3k from my bank account. The credit issuer receives the money on Day 2, but they have not yet initiated BT (hopefully). Then lets assume they transfer say 12k towards my other credit card on Day 3. When the first statement comes up in 30 days, is the 3k payment made before BT still settled towards BT?

Financial

Comments

  • tajid on 28/05/2017 - 22:15

    Why do you need to wait before BT hits? Is the BT 0%?

    Are you trying to make sure that payment you make is being allocated to the purchases and not to the BT?

    You can confirm this with the bank but AFAIK recently new CC rules whereby payment to CC is going to be allocated to payments that currently are incurring the highest interest and therefore you can wait for the up to 55 days interest free then pay for the purchases. But again double check with the bank.

  • [Deactivated] on 29/05/2017 - 11:37

    "Are you trying to make sure that payment you make is being allocated to the purchases and not to the BT?"

    Yes, this way, you avoid paying interest on your purchase for the duration of BT offer. Otherwise, any repayment is settled to your BT (as you also wrote), and your purchases (that you made to get the introductory bonus) will accrue interest. If you make purchases and pay them off quickly you can get the introductory bonus AND you will have the advantage of the BT too.

    Things that are unclear to me (and potentially make this impossible):
    - The bank may process BT automatically the moment you make the first purchase
    - The Bank may retrospectively allocate all repayments to BT (irrespective of the time you paid into the credit card even if the payment was ahead of BT by 1 full day or more)

    • tajid on 29/05/2017 - 12:22

      Btw I don't get notification of a reply if you don't click reply to my response.

      No as I said, new credit card rule whereby payments will be allocated to the highest incurring interest first, i.e. purchases but call you credit card company to confirm. That has been the case for my SGB and WBC cards.

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