Quote:
Originally Posted by neatdesign
Most credit card companies set up their payment allocations so that the lower APR balance gets paid down first, while the higher APR balance languishes there and barely gets ANY payment applied to it until the lower APR balance is completely eliminated.
|
My Amex allows you to choose your payment allocation. I have never used it, as I pay in full each month, but each month I see it available as an option on my statement.
The way it works is that some charges qualify for "flexible payments" that you can pay off over time like a regular credit card. Say I charged $10k last month and $8k qualified for flex pay. When I pay my bill, I can choose to pay off the $2,000 while carrying over and incurring interest on the $8k. The $8k is itemized separately on my bill and only that amount is used to calculate interest. I could continue to use my card each month and PIF the new charges while paying a minimum on the $8k financed, until it was paid off.
This is the kind of thing my friend wanted to do (if possible) with a balance transfer. Sound like there isn't a card that will allow it, though, other than my Amex and he will not be able to qualify for it.