How does this work?
By Lena Kovadlo
@lovebuglena (52144)
Staten Island, New York
January 23, 2025 1:37pm CST
Last summer I bought furniture at Bloomingdale's using their store credit card. I qualified for 36-month 0% financing so took advantage of that.
If I buy something else from Bloomingdale's using the store credit card how does it work when it's time to pay the bill?
Does what I pay first go toward the new purchases and then the rest toward the already existing balance? Or is it the other way around?
I am not familiar with this because I never had a balance on any credit card before that I paid off over time. I've always paid my balances in full with each statement.
8 people like this
6 responses
@lovebuglena (52144)
• Staten Island, New York
24 Jan 25
It makes no sense to keep a balance on a card unless there’s no interest.
2 people like this
@porwest (112717)
• United States
25 Jan 25
@lovebuglena In the case of a 0% interest rate, I'd pay the balance off over time instead of upfront all at once, because my money will earn more in interest if I hold it than if I pay the balance. Just my two cents.
The ONLY time holding a balance makes sense is when your cash can earn more than what you would be charged to borrow it.
2 people like this
@lovebuglena (52144)
• Staten Island, New York
25 Jan 25
@porwest by “my money will earn more in interest…” you are referring to money in a bank account?
1 person likes this
@moffittjc (128824)
• Gainesville, Florida
25 Jan 25
I think it's the same everywhere, but I know in Florida that all payments are required by law to go to the oldest debt first. Once the "old" debt is paid off, then future payments will be applied toward any "new" debt you add on.
1 person likes this
@moffittjc (128824)
• Gainesville, Florida
26 Jan 25
@lovebuglena Yes, I believe you are correct in your assumption.
1 person likes this
@lovebuglena (52144)
• Staten Island, New York
26 Jan 25
@moffittjc If you buy stuff from Bloomingdale’s using their credit card you earn points and then that turns into money. I’ve earned $125 that I can now use to buy something. So if I can’t use their credit card to buy stuff anymore until I pay off the damn furniture (so I don’t pay interest on new purchases) then I miss out on earning money for my purchases. And that sucks. I think it’s $25 for every 5000 points.
1 person likes this
@lovebuglena (52144)
• Staten Island, New York
25 Jan 25
By that explanation does that mean if I buy something now or in the near future with this card whatever payment I make (not for full balance) won’t cover the new purchases and I will have to pay interest on them?
1 person likes this
@kaylachan (84699)
• Daytona Beach, Florida
24 Jan 25
Depends on the purches. If you have a promotion, as long as you pay the monthly balance (or what you can each month) that goes directly to princaple. If you buy something else, depending on if it has no interest promotion, then it would act the same as the first. If not, you'll be charged interest on the item that doesn't fall under the interst-free promotion.
1 person likes this
@kaylachan (84699)
• Daytona Beach, Florida
24 Jan 25
@lovebuglena It goes twords the total balance reguardless of which purches is first.
2 people like this
@lovebuglena (52144)
• Staten Island, New York
24 Jan 25
What I’m not sure about is if I pay a certain amount does it go toward the current purchase first or towards the previous balance?
2 people like this
@porwest (112717)
• United States
25 Jan 25
@lovebuglena Payments are always applied to the oldest debt first, by law. The reason for this is because cards often have different rates for different balances depending on the fed rate and other factors, and so, a card could avoid applying payments to balances with higher rates and apply them to lower rate balances to hold higher rate balances longer and cause you to accrue more interest charges.
1 person likes this
@RebeccasFarm (91299)
• United States
31 Jan 25
Credit cards for me have been so useful yet so deadly.
1 person likes this
@lovebuglena (52144)
• Staten Island, New York
31 Jan 25
Very easy to get into a lot of debt with them if you’re not careful. I say if you can’t afford it don’t buy it, unless it’s an emergency.
@RasmaSandra (97912)
• Daytona Beach, Florida
23 Jan 25
I only use debit cards. However, perhaps this can help you
https://www.consumerfinance.gov/about-us/blog/how-understand-special-promotional-financing-offers-credit-cards/
1 person likes this
@lovebuglena (52144)
• Staten Island, New York
25 Jan 25
As far as I am aware it was 36-month only for the furniture that I purchased.
I want to make sure that if I buy something with the same card now that I won’t get charged interest on the new purchase because the payment I will be making won’t be for the total card balance.
So if say my balance is $4000 and I make a new purchase for $100 using the same card and when I pay the bill I pay $200, how much of it will go toward the new $100 purchase and how much toward the $4000 previous balance?
1 person likes this
@lovebuglena (52144)
• Staten Island, New York
26 Jan 25
@porwest so that means anything new I buy I’ll get charged interest on just because I don’t pay the total card balance? If that’s true then it is not fair.
1 person likes this
@porwest (112717)
• United States
26 Jan 25
@lovebuglena It would be apply to the original, older balance, unless you could direct them to apply it to the latter balance.
