Warning! Chase Visa 6 month promotion - for those who pay in full

[FriendsofMickey]

For those of you who pay your card in full. I want to warn you of a 'trap' I fell into.

In April, I charged my $200 deposit to my Chase Visa. When I got my bill, I subtracted the $200 dollars out (for the promotion) and paid the remainder of the bill.

In May I got my new bill and subtracted the $200 out again.

In June when I got my bill, I had a finance charge. I called and they told me that I did not have any money left on the promotion, so that is why I had the finance charge.

After researching, I found out what happened. Here is what it was. I paid the April bill and got two credits to my card that were over the $200. Thus, unknown to me, my bill was 'paid in full'. So, I got pushed out of the promotion. I had never even looked closely at the line of the promotion saying that I had $0 left on it. It had the $200 promtional and then column that has the 'left' amount.

They refused to do anything about it, saying they couldn't, it is policy, blah, blah, blah.....

Anyway, I wanted to warn everyone that it can happen to you. Say, you subtract out your promotional amount pay the difference, and then get a $10 credit from your local hardware store (before your due date). Well, if you do not notice, it could end up costing you!

[Mfarquar]

Was the promotion/$200 for a vacation package?

Or, was it because you're a new card member?

I had put $200 back in September for a package. I paid it off and have been charging new items since (to get points) and paying them off in full.

Does this mean that when I charge the remaining balance next week for my vacation package, that I will not be eligible for the 0% for 6 months?

I did the same thing last year, and can't remember being pushed out of the promotion... ???

Now I'm worried!

[FriendsofMickey]

Yes, the $200 was for a vacation package.
Having your card paid in full will not hurt a new promotion at all.
Here is the situation I am talking about. Say the remainder of your vacation is 2500. So, you put it on your card and plan on taking the full 6 months to pay it off.
During your six months time, you are trying to also get as many points as possible to use down in the parks, so everything you purchase you put on the card. Every month, you pay (either by check or on-line the full amount minus the 2500).
Then, let's say in month two, you bought a washer using your card. The total was $900. A couple of weeks later you find the same exact washer at another store for $140 less, so you go to the first store and get a credit (because they have a policy where they will refund the difference.) Meanwhile, you have already sent your check (or paid your balance on your card) prior to the due date. So now, you have in essence paid $140 of your promotional amount. So, next month you will need to pay everything except $2360. You need to watch the promotional line of the bill very closely. Just because they give you 6 months to pay it off, if you pay more than your balance minus your promotional amount, you no longer get the promotional on the amount that was paid (EVEN IF it was do to a credit on your bill).

Hope that helped clear it up.

[Itchy]

I am trying to understand this.

My take on the 6 month interest free on your disney vacation was paid on first when ever you make a credit card payment because it is interest free.

So if you charge gas, food, or other items besides a disney vacation you will accure interest on that amount.

Meaning that your vacation package amount will go down on each payment to the credit card until its paid for and then they will apply the payments to the interest related charges.

So you will always see interest assessed to the non disney charges even though you have a package you are paying for.

[statrai]

I also charged our disney vacation. This past month I sent in the amount due less the vacation plus an amount that would pay off the vacation in 6 months. You are saying since I started to pay on the promotion I lose the six months? I can't understand the reason for that.
I might be OK however because I did two charges for the vacation so maybe 1 charge will still be good for 6 months.
I had a HOME DEPOT card and that is what I did with no problem.

[Itchy]

It is my understanding that if all you charged was the vacation you have 6 months to pay it off with out any interest charges.

Since it is interest free they are not making any money off of you as you are using their money for free. Which mean that they would want to get the interest free stuff out of the way first so they can starting making a buck off of you.

But if you charge a washer you will pay interest on that but will not pay down on that balance until the free stuff is out of the way.

If you look at your bill it will break down interest paid for purchase on normal charges, cash advances, and the like. You will still see 0 interest on the vacation package until the promotional period runs out.

[VWL Mom]

It is my understanding that if all you charged was the vacation you have 6 months to pay it off with out any interest charges.

Since it is interest free they are not making any money off of you as you are using their money for free. Which mean that they would want to get the interest free stuff out of the way first so they can starting making a buck off of you.

But if you charge a washer you will pay interest on that but will not pay down on that balance until the free stuff is out of the way.

If you look at your bill it will break down interest paid for purchase on normal charges, cash advances, and the like. You will still see 0 interest on the vacation package until the promotional period runs out.

This is the case with mostly all cc companies. As a rule of thumb, if you are going after a 0% promotional offer you should make sure the card has no balance to start and then do not use the card until the promo is paid off. Payments are applied to the lowest interest first.

[Ian]

This is the case with mostly all cc companies. As a rule of thumb, if you are going after a 0% promotional offer you should make sure the card has no balance to start and then do not use the card until the promo is paid off. Payments are applied to the lowest interest first.That's always been my understanding, as well.

[brownie]

That's always been my understanding, as well.

My understanding, too. Seems like this promotion is probably more trouble than it's worth.

[badkitty]

My understanding, too. Seems like this promotion is probably more trouble than it's worth.

Same here. From what I have encountered, in order to take full advantage of the offer, the card needs to be out "0" before the charges and then you shouldn't use it until the balance is paid off. I had a different CC that I used a "4.99% for life of the loan" but I didn't start with a zero balance on the card. Every payment I make goes mainly on the 4.99% and very little (and I mean only a few dollars) goes on the higher interest rate.

[MickeyMousse]

Chase has become one of the worst credit card companies around, IMHO. I had better experiences when American Express was the preferred casrd of WDW. :twocents:

[sgdisney]

Here's another question. I understand that when you book your package you pay $200 with the balance being due 45 days prior to your trip. So if you put the balance on your Disney VISA at the 45 day mark, do you have 6 months from then to pay it off or 6 months from when the trip was originally booked and the deposit made?

[FriendsofMickey]

SGDisney: If you put $200 down, then you have 6 months from that date (the day you put the deposit down) to pay off the $200. When the remainder is due, if you pay the remainder with your chase card, then you have six months to pay on the remainder, but the original $200 is STILL due at the six months from when you used the card).

As far as questions regarding my OP.
I am not sure how Chase does it for those who keep a balance on their card.

However, if you pay your card off everymonth. Then, when you use the card for a vacation, all you usually need to do is subtract your 'vacation' amount out and pay the rest off in full. Then, you do not get a finance charge or interest charge.
My issue was encountered because I got a credit that made it look like I paid off the entire balance (including the vacation).

So, the point is that if you are using the 'vacation' promotion, to check and double check the line that tells you what the promotion amount is. Make sure you verify that the amount left is what you think it is.

Example, that I hope clarifies what the issue is:
Here is a scenario that works the way it should.
Balance in April $540.
Pay it off at $540.
Charge deposit of $200 for Disney in May.
Also charge grocerries,clothes, and gas totaling $660 in May.
So the May Balance is $860.
Pay $660 on Due date (via internet,set it up early to pay on due date).
In June you are fine because the $200 "promotion" is working correctly.
Here is an example of the issue I was talking about.
Balance in April $540.
Pay it off at $540.
Charge deposit of $200 for Disney in May.
Also charge grocerries,clothes, and gas totaling $660 in May.
So the May Balance is $860.
Pay $660 on Due date (via internet, set it up early to pay on due date).
Before due date, you decide you do not like the clothes you bought and you take them back. You get a credit of $220.
Now here is where you have an issue, because now you have a negative $20 balance. In June you purchase other items and end up with a balance of $450.
If you subtract out the $200 thinking you still have months to pay off the vacation, you are wrong. Because the Credit from the clothes already paid off your promotion.

Now the statement does have a column that tells you how much is left on your promotion, but I never looked closely. I just assumed that I still had five months to pay off my promotion. Because my credit was something I had waited months for and did not catch when it was made. Obviously, I will look closer at any promotion from this point on.

[statrai]

My statement will come tomorrow. Thanks for clearing up the issue. I always look at the balance for special offers. In simple terms you thought you still had a DISNEY charge which you did not because of a refund that paid it off after you had subtracted the DISNEY charge to pay the bill. I would guess if you had other charges before the refund you would have been OK. Guess I am safe with my assumption that the DISNEY charges are not paid first. Find out tomorrow.

[statrai]

Just checked the statement, everything was as I expected. My usual purchases were listed and the ammount still due on the promotion less what I had paid the previous month was listed.
The full payments on the promotion is not due till December. On caution to be on the safe side. Our promotion is due to expire on 1/3/10 which is when the next statement comes out. I will pay off the promotion in December so the promotion is at $0 when the promotion ends.
I think this a good plan. I enjoy being able to pay for the vacation over 6 months.
So just check to see what is left on the promotion and you will be OK. 10 days till our trip YEAH!!! :mickey:

[rjmdds]

This is giving me a headache.