Disney Visa 0% Interest On WDW Packages

[KimberCar]

Maybe it is just me that was not aware that Disney Visa only applies your minimum payment due amount to 0% ARP items like Disney packages. I made sure to make payment amounts in six months to total the cost of the Disney package we placed on the card, but only the minimum amount due each month was being applied to those totals. All extra funds over the minimum payment were being applied to the highest interest item on the card. This is the first card I have had that handles 0% this way. My other two cards would apply whole total paid to 0% while charging interest on anything else on the card.

So how are you suppose to pay that amount off in six months if they are only applying the minimum monthly payment to the total? Disney Visa told me I can not request to have extra funds over the minimum amount applied to those special APR promotions. Do most people just payoff the complete amount of new charges each months to ensure that any extra payment money made during the month is going to the special APR promotions? Trying to figure how to work this promotion correctly so I can pay off next trip during the 0% six months. TIA!

 

[dansdad]

Do most people just payoff the complete amount of new charges each months to ensure that any extra payment money made during the month is going to the special APR promotions?

Yes. That's the only way to get 0% for six months. We don't use it for big purchases other than a WDW vacation. We use it for gas, groceries, utilities, etc. Then we pay it off every month.

 

[GWhitten98]

I though that was how pretty much most credit card was set up, always paying the highest interest rate items first. That being said, we generally pay our disney card off every month and this will be our first vacation on it, so I don't know for sure.

 

[dpswift]

I think that a law went into effect a few years ago that requires banks to credit higher interest first. I does work out better for you because it is interest free while you are paying down higher interest dept.

 

[lanejudy]

It is correct that of your regular monthly payment, only the minimum is applied to the promotional balance, plus anything above the "regular" balance due -- so if you carry a balance every month it will pay down the higher interest rate which is not the promotional balance. It was part of the credit card laws enacted a couple of years ago.

However, there is a work-around...make an extra payment each month. Any payment/credit applied outside of the regular monthly payment is applied directly to your promotional balance. But it must be an entirely separate payment, you can't simply request that a payment be split $x to regular balance and $y to promo balance. Simply send a second check for the amount you want applied to the promo balance about a week after you make the regular payment.

Enjoy your vacation!

 

[KimberCar]

However, there is a work-around...make an extra payment each month. Any payment/credit applied outside of the regular monthly payment is applied directly to your promotional balance. But it must be an entirely separate payment, you can't simply request that a payment be split $x to regular balance and $y to promo balance. Simply send a second check for the amount you want applied to the promo balance about a week after you make the regular payment.

Enjoy your vacation!

Thanks for the information! It is completely my fault for not understanding the promotion. I have not used credit cards in about 8 yrs. I was one those dumb college kids that got into BIG credit card debit, and I worked hard to clear it all out and not use credit cards anymore. The last time I did a 0% promotion it must have been before the laws changed.

I did make two large payments a month, which is how I must have gotten the 4,800.00 down to 1,500.00. I have until the end of June to pay off the 1,500.00 left on the promotion rate without the interest, so I will just make sure payment 2 for May and June cover the remaining promotion balance. Now that I know how it works my payment spreadsheet will work correctly to pay it off in six months.

 

[Rosanne]

I think that a law went into effect a few years ago that requires banks to credit higher interest first. I does work out better for you because it is interest free while you are paying down higher interest dept.

This.

Really, there is no disadvantage for you in the way that they are handling the payments. If you are carrying a balance on other items that would be being charged full interest and you are paying more than the minimum payment, it is a good thing that the extra is going to these higher interest balances. You are getting the greatest savings for the greatest amount of time.

 

[ruadisneyfan2]

I make sure to only use my Disney visa for Disney travel. It just makes it easier. For everyday purchases, we use our Southwest Airlines card.