Randomly Assign New Money In Overdrawn Category to Whatever Credit Card it wants

Ok, so here's something that I noticed. Say that I've overspent in a category, and that that overspending happened with two different charges from two different credit cards. If, during the month I get some money, or I decide to pull some from other categories with a positive balance, and assign it to the overdrawn category, the money gets assigned to the credit cards that the charges were put on, but I don't get to pick which one. Is there any specific logic to this?

Here's a more concise explanation.

Now, I have two credit card accounts and for the sake of this example, each starts with a zero balance (meaning I paid it in full last month).

SAMPLE ACCOUNTS

Super Credit Card  - Balance = $0

Home Depot Credit Card (0% interest) - Balance = $0

 

SAMPLE CATEGORIES

MAIN CATEGORIES -

$100 - Fuel

$100 - Fun

$100 - Dining Out

$    0 - Home Improvement (yes, zero dollars).

CREDIT CARD PAYMENTS CATEGORIES -

$    0 - Super Credit Card

$    0 - Home Depot Credit Card (0% interest)

Note: because the account balances are $0, my Credit Card Payment Category balances are also $0 for each (in this scenario).

 

With that setup, let's walk through the scenario and update things as we go along.

I go to home depot to buy a new sink for a reno I'm doing, and i know I have 0% interest on this card so I'm going to carry the balance a little. So, I make my $50 purchase using my Home Depot Credit Card. Here's what happens:

 

SAMPLE ACCOUNTS

Super Credit Card  - Balance = $0

Home Depot Credit Card (0% interest) - Balance = $ -50

 

SAMPLE CATEGORIES

MAIN CATEGORIES -

$100 - Fuel

$100 - Fun

$100 - Dining Out

$ -50 - Home Improvement (yes, zero dollars).

CREDIT CARD PAYMENTS CATEGORIES -

$    0 - Super Credit Card

$    0 - Home Depot Credit Card (0% interest)

 

As you can see, it updated my home depot account balance, and the category balance for Home Improvement, but, since there was no money to take from Home Improvement, it couldn't assign any to the Home Depot Credit Card payment category.

 

Now, I go online to Amazon, and I buy a new faucet for the sink I just bought from home depot, it was $75 and I used my Super Credit Card this time, not my home depot card. I know, that it means I'll be carrying a balance on that card because I'm not covering the cost... yet. Let's see what happens.

 

SAMPLE ACCOUNTS

Super Credit Card  - Balance = $ -75

Home Depot Credit Card (0% interest) - Balance = $ -50

 

SAMPLE CATEGORIES

MAIN CATEGORIES -

$100 - Fuel

$100 - Fun

$100 - Dining Out

$-125 - Home Improvement (yes, zero dollars).

CREDIT CARD PAYMENTS CATEGORIES -

$    0 - Super Credit Card

$    0 - Home Depot Credit Card (0% interest)

 

As you can see, it updated my super credit card balance, and the category balance for Home Improvement, but, since there was no money to take from Home Improvement, it couldn't assign any to the Super Credit Card payment category.

 

So, now... I am going to take the money from Fuel, all of it, because I walk to work now, and assign it to the Home Improvement category. Let's see what happens.

 

SAMPLE ACCOUNTS

Super Credit Card  - Balance = $ -75

Home Depot Credit Card (0% interest) - Balance = $ -50

 

SAMPLE CATEGORIES

MAIN CATEGORIES -

$   0 - Fuel

$100 - Fun

$100 - Dining Out

$- 25 - Home Improvement (yes, zero dollars).

CREDIT CARD PAYMENTS CATEGORIES -

$    0 - Super Credit Card

$  100 - Home Depot Credit Card (0% interest)

 

Ok, so, i took the 100 and moved it to the Home improvement category, obviously, nothing happens to the accounts, since it wasn't a transaction it was just moving money around. Now, as soon as the Home Improvement Category gets the $100 dollars in it, it'll take that $100 and assign it to the Card Payment Categories that need the money. But, what's this? It took the whole $100 and assigned them to the Home Depot Card, and $0 to the Super Credit Card. But, I'd rather use the money to pay the Super Credit Card, rather than the Home Depot Card, since I have 0% interst on the home depot card.

 

NOW... after all this, what I need to know, is what's the logic behind how / who get's the money in a scenario like this.

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  • Sorry, had to follow up my question as I think it wasn't clear.

    I'm asking, what is the logic behind which Credit Card Payment Category gets the money?

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      • satcook
      • satcook
      • 1 mth ago
      • Reported - view

      Steel Blue Android it assigns the money as it was spent. So if you spent on the Home Depot card first that one will get the money. 

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  • If you have a 0% card, feel free to reallocate from that payment category to the payment category for whatever high rate card you have. (Just leave enough for the minimum payment.) It's an easy way to make a balance transfer without an up front transfer fee.

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