Credit Card Experts-- Did I do this right?

[ekatiel]

We never run a balance on credit cards, so I want to make sure I did this right. Part of our November WDW trip will be paid for by DH's work, since he is attending a conference there for a few days of the trip. I charged DH's company's portion of the trip on our Disney Visa, and we won't pay it off until he get reimbursed after the trip. I also charged $380 on the same card last month so I could get more points for our upcoming trip. We usually pay off our credit cards in full each month, but I don't want to pull money out of saving to pay off DH's company's portion of the trip when it should be interest free for six months anyways. So, today, I paid $405 on the card-- $380 that we charged plus the minimum payment of $25. That should pay off the interest earning charges first (the $380) and then put the $25 toward the non-interest earning portion, right? --Katie

 

[girli565]

I believe the way it works is that any payments go towards the 0% interest items first.

 

[lost*in*cyberspace]

It has been my experience with credit cards that you can't dictate what balance you want your payment to go to (such as a balance which charges interest versus your no interest balance). It always works out to your cc card's benefit, not yours.

 

[timmac]

The previous two posts describe how things used to work before the Card act of 2010. Now, any payment beyond the required monthly minimum must be applied to the highest APR first. So, $25 of your payment goes to the balance with no APR, and the remainder goes to the highest APR portion of the balance. Thus, a payment of $405 sounds like it would accomplish what you want.

 

[ekatiel]

The previous two posts describe how things used to work before the Card act of 2010. Now, any payment beyond the required monthly minimum must be applied to the highest APR first. So, $25 of your payment goes to the balance with no APR, and the remainder goes to the highest APR portion of the balance. Thus, a payment of $405 sounds like it would accomplish what you want.

This is what I thought with the new credit card laws. Thanks for confirming. --Katie

 

[tarak]

My understanding is this (and it only applies to the Disney Visa). My balance is $2000 and $1000 of that balance is due to a package vacation with Disney (one that is eligible for the 0% financing for six months). If I pay $1100 towards the total, the $1000 that would be charged a finance fee is paid completely, and $100 is put towards the vacation, which does not accrue interest until the six months has expired.

Not sure if I answered your question, though. Do you know that your husband's portion of the trip qualifies for the six month financing? I know if I book a package (room, meal, tickets) it is. But if I make a room only reservation, it doesn't qualify and I have to pay it off completely or get hit with finance charges.