HSBC balance transfers... .

David333

I did a balance transfer onto my HSBC credit card at a promotional rate of 9.9% in June, which runs out in January and reverts to the original rate of about 1000000% (maybe about 18% to be honest) . If I were to do a balance transfer today which was for another six months (so until March time), would any payment I made next month be taken from my first balance transfer or my second...?

I've tried to ask but struggled to explain. If my original balance transfer was £1000 and my next one £3000, would my payment of £1000 next month pay off the first balance transfer or just go towards the final one...? In other words, in February next year, if I've paid off £1000, will my first balance transfer be wiped off and I'll still be able to benefit from the second balance transfer rate until March...?

Hope I've made sense! Hope someone can help. Thank you...!

jimmyjim_uk

I'm assuming you will have a balance at 9.9% and another at X%.

Depends how HSBC allocate payments to your account. A lot of lenders will usually pay off the cheapest debt first leaving the higher one to clock up interest.

If you are getting no joy out of the phone CS pop into a branch and ask.

flowerofscotland

It should say somewhere on your credit card statement how payments are allocated. Almost all of the cards allocate payments to the cheapest debt first so your £1000 in your example would not pay off your first debt - this would start to be accrue interest at the higher rate.

I think Nationwide make a big "song and dance" about the fact that they allocate payments in chronological order so I think they may be the only or one of the few that do this.

Can you clear one balance before doing another transfer?