Amazon Promotional Financing - Payment Allocation to Avoid Interest
January 24, 2023 10:46 AM   Subscribe

I bought a Kindle, using my Amazon Prime Store card with 6 months promotional financing. The only other charge on that card is $3.50. I’ve switched my Amazon preferred payment method to another card, so there will be no future charges after this, just the Kindle balance.

I want to set up Autopay to make six equal monthly payments, but add that $3.50 to the first payment only. Right now, my minimum balance due equals that amount (first Kindle payment plus $3.50).

Under Payment Allocation Options, will choosing Standard Allocation and always paying the minimum balance accomplish what I want? Or would another setting be better?

I want to be absolutely sure to avoid paying any interest.
posted by elphaba to Work & Money (3 answers total)
It may be easiest to just send a one time payment of $3.50 then set up up autopay for the other amount, monthly, six times.
posted by DirtyOldTown at 10:51 AM on January 24

Standard allocation is fine (allocation only matters if you have a significant regular balance in addition to the promo balance) but the minimum payment may not always be enough to pay the entire balance in six months. You can use autopay, but enter the specific 1/6 amount, not just “minimum due”.

And I agree, just make a separate manual payment of the $3.50 this month.
posted by tubedogg at 11:15 AM on January 24

I have a different card with similar promotional financing with no interest for a year. I divided the total balance of my large purchase by 12 and set up an auto payment for slightly more than 1/12 for 11 months, with a huge note in my calendar to check the balance due after my 11th payment, to make sure it's fully paid in time. On the off-chance that something went askew with one of the payments, I want to make sure I check the balance and pay it off fully before the one year mark. Adding the note to my calendar to manually checked helped me be a lot less stressed about the auto payments.
posted by bluedaisy at 11:25 AM on January 24

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