Credit card shake-up begins with MBNA payment overhaul News Discussion

princess*daisy

YorkshireBoy wrote: »

Just remember though, there will only ever be one winner in this 'game'.

"24.9% APR (typical)" anyone?

"Up to 40 days interest free" anyone?

https://forums.moneysavingexpert.com/discussion/2694163

Now it all makes complete sense :rolleyes:

izools

Percy1983 wrote: »

Shame its too late to help me, I had a £3k cash advance at 29.9% sat under a balance of 7k at 18.9% with the Halifax. As it is I am going to make the final blow and clear the card next month but if this would have saved me quite a bit of money.

Yes I shouldn' have took the cash but it was needed at the time.

How did you even get £3,000 cash from the card!? 10 trips to the cashpoint? or 5 trips to one and when it ran out 5 trips to another :rotfl:

I kid, obviously you had it paid straight into your current account.

Have you looked at getting a Clarity card from Halifax once you've cleared this one, save the expensive fees if you're in a tight spot needing to do this in the future?

MOPI

Hi can I just check does this sort of thing apply to the following scenario:
If I have a 0% purchases credit card with a balance of £300 but £12 of this £300 is a late payment charge, which would usually accrue interest. I would usually have to pay off the other £288 on the card before I could get to paying off the £12 charge along with any interest that it may have accrued in the meantime. Does this new ruling mean that in the above scenario the late payment charge would be paid off first?

Thanks in advance.

fozmcfc

I'm wondering if the card companies really will lose out.

Before spending on a 0% BT card was a no, no, now it is a possibility, even an emergency cash flow problem, no longer need cost the earth.

Consumerist

MOPI wrote: »

Hi can I just check does this sort of thing apply to the following scenario:
If I have a 0% purchases credit card with a balance of £300 but £12 of this £300 is a late payment charge, which would usually accrue interest. I would usually have to pay off the other £288 on the card before I could get to paying off the £12 charge along with any interest that it may have accrued in the meantime. Does this new ruling mean that in the above scenario the late payment charge would be paid off first?

My understanding is that the order of payment depends on the interest rate payable. i.e. Whatever is at the highest rate gets paid off first.

mrbigd

Do the card issuers have to show a balance per interest rate?

Tesco do at the moment, not sure about anyone else.

I.e

BT at 0% £1000
Cash Advance at 20% £ 250
Spend at 15% £ 350

If a person pays a minimum payment then it would clearly go against the Cash Advance, however, what if the person wanted to clear both Cash Advance and Spend from a previous statement then would they have to calculate this themselves?

Consumerist

So far as I am aware, there is no obligation on the bank to put a break-down of your balance into the various types of debt on your statement but you should be able to ask the bank's customer disservice for a break-down. A refusal would, I think, be unlikely but if they do refuse then that would be grounds for a formal complaint.

snappy2004

If i currently have £3000 outstanding @ 17% with a £10000 limit and have an offer from MBNA to perform a 0% money transfer for 9 months.
Could I make use of the money transfer by transferring £3000 to my current account and then pay it back to MBNA to reduce the overall %? as the payment would pay off the balance with the highest rate first.

Consumerist

snappy2004 wrote: »

If i currently have £3000 outstanding @ 17% with a £10000 limit and have an offer from MBNA to perform a 0% money transfer for 9 months.
Could I make use of the money transfer by transferring £3000 to my current account and then pay it back to MBNA to reduce the overall %? as the payment would pay off the balance with the highest rate first.

On the face of it, that sounds reasonable providing you can pay off the £3,000 before the end of the 0% BT period. It's going to cost you another £120 (4%) up front for the super-balance transfer against around £350 (very rough estimate) in interest charges if you only pay minimum repayments over 9 months.

Edit
According to MSE Loan Calculator you will need to pay £357 pm to repay the £3,000 over 9 months @ 17%. At 0% that reduces to £333 per month. Can you manage that ?

euronorris

mrbigd wrote: »

Do the card issuers have to show a balance per interest rate?

Tesco do at the moment, not sure about anyone else.

I.e

BT at 0% £1000
Cash Advance at 20% £ 250
Spend at 15% £ 350

If a person pays a minimum payment then it would clearly go against the Cash Advance, however, what if the person wanted to clear both Cash Advance and Spend from a previous statement then would they have to calculate this themselves?

Halifax also break down the interest applied, in the same way as Tesco.