1.99% for the life of the balance?

Question

Capital one offered me a nice balance transfer rate of 1.99% for the life of the balance (2,000) does anyone know if I have to use the card for purchases in order to keep that rate? becuase otherwise its not worth it since payments go to lower interest rates before higher ones, I don't want a 500 dollar purchase balance to be at 14.9 sitting while I pay the 2,000 off. Ever done this before? I know discover has some stupid rule like that...just want to make sure I'm not screwing myself over becuase i'd rather have it at 1.99 then 18.24 with citi cards...help!! thanks!

Oh, the capital one account I've had for a few years sitting with a zero balance, so I don't owe anything on it right now.

Whoever "mr. H" is, stop posting spam, becuase you just said your name is Mr. Tom C...make up your mind!

Answer 1

You are correct all of your payments will be applied to the balance with the lower interest rate first. So as you suspect if you make a $500 purchase they won't apply any of your payments to that until the balance using the 1.99% interest is paid off.

Also, you have to be careful about the "for life". They may promise that but there is also a statement in the Terms and Conditions that allows them to modify any portion of the agreement or interest rates at any time, and for any reason. So somewhere down the line they could change the 1.99% and your only recourse would be to close the card out and pay off the balance.

This is not just with Capital One, but just about every credit card company does the same thing now.

Answer 2

Read the terms. Every offer is different.

Sounds like a good deal if no other requirements. You already know about not charging. Good job.

To further insure yourself, authorize them to electronically debit your checking account every due date to pull the minimum. That way, if the payment is not made, it's THEIR FAULT, not yours. Because otherwise you can't ever be a day late or a dollar short on your payments.