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cv91915

Do Statement Credits Count Toward Payment of Previous Statement Balance (B of A)?

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Does Bank of America count rewards redeemed as a statement credit toward the payment of the previous statement balance?

My mom has ~46,000 points (worth ~$460) left on her Bank of America Premium Rewards Visa, and her last statement balance was ~$950.  She has about $80 in charges since the last statement closed.

If I redeem points for a statement credit and make a payment, and between the two they total her entire ~$950 statement balance, will she be charged interest when the next statement closes?

Feels like a newbie question, but I don't usually do redemptions for statement credit on any of my cards that have routine usage.  At my direction the last ~$80 in charges are the last charges this card will see.  

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This is a good question (which I don't have the answer to) as the policies differ from bank to bank. You should do a master thread CV. IME:  

Citi and Discover will. 

Amex will not. 

 

In your situation though. If there is no balance to charge interest on... They would have no way of charging interest. 

Edited by EricDET

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24 minutes ago, EricDET said:

This is a good question (which I don't have the answer to) as the policies differ from bank to bank. You should do a master thread CV. IME:  

Citi and Discover will. 

Amex will not. 

 

In your situation though. If there is no balance to charge interest on... They would have no way of charging interest. 

If they don't count my $435 redemption* as a payment in addition to the $515 I'm paying from her checking account they'll charge part of a month's worth of interest on the $435 on the next statement.

* I'm leaving 2,420 points (worth $24.20) in her rewards account for now.  The $80 spent on the current statement will result in 80 more points, which will allow me to do one final $25.00 redemption (which is the minimum) toward her current purchases.

This would be really clean if I could do one redemption to bring the final rewards balance to zero and pay the balance from her checking account...  or if I wasn't hellbent on getting the last 80 cents.  😛

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I know that some cards are clear that things like refunds and redemptions do not count towards minimum payments (unless it was enough to zero out the balance).  However, not having looked at redemption on the Merrill+ card, I have no idea what the current BofA practice is.  Website SHOULD have language that speaks to the issue though...

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On 7/3/2018 at 11:59 AM, cv91915 said:

Since the last two bullet points in the image above could be construed to give conflicting answers to my specific question, I have decided to:

  • Cash out the $435 in rewards as a statement credit (leaving $24.xx worth of points in the rewards account);
  • Pay the full statement balance of $950 from Mom's checking account;
  • Let the next statement close with a credit balance of $950 - $435 statement credit - $950 payment + $80 in new charges = -$355
  • Redeem the final $25.xx in points as a statement credit, leaving a balance of -$370;
  • Request a credit balance refund check after the final redemption posts.
Edited by cv91915

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Probably best to request any rewards credit in time to post before your statement closes so that it reduces the statement balance. I had the same issue with Barclays recently and their app was telling me I had not yet paid the minimum balance even though a rewards credit posted after the statement closed bringing the balance to zero.

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41 minutes ago, chicagorich said:

Probably best to request any rewards credit in time to post before your statement closes so that it reduces the statement balance. I had the same issue with Barclays recently and their app was telling me I had not yet paid the minimum balance even though a rewards credit posted after the statement closed bringing the balance to zero.

If Mom actually listened to recommendations on which card to use (and not to use) at any given time we wouldn't be having this conversation.  

🤖

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