[thechat] Credit Card Mortgage

[Fred Jones]

> You _do_ realize (a) that the low APR only applies to the balance
> transfer
> amount and not to your new purchases, and (b) that your payments on the
> card apply first to the balance transfer amount and, only after that
> balance
> is paid off in full, to those new purchases you are making on this card,
> right?  That means you're paying the big APR on those two new 'little'
> purchases every month and those purchases and their interest is
> compounding
> month after month until you pay off that initial balance transfer and
> then begin to pay off those new purchases.

We purchase 50 cents of gas (twice in a row) on the first of the month.
Aside from that, I don't use the card. Takes me a few minutes each month,
but it works well. :)

> It's all in the small print.  They are not losing any money here.

Other cards I have are as low as 1.99% lifetime APR with no purchases
required. I don't make any purchases on those cards, precisely because of
what you say.

You are 100% right that's it's all in the small print, but I read that print
very closely. :)

Fred