Which portion gets paid off first?

matte1234

I know it's not the done thing but if I were to borrow say £500 cash (total balance £1500) on a Natwest card and then balance transfer say £600 from that card to another would that clear the cash transaction and the higher rate imposed?

Are they obliged to make it work in your favour or are they going to screw me over and pay off the lower portion leaving the cash rate?

Enterprise_1701C

They always make sure the cheapest part of the balance gets paid off first, leaving the most expensive part nicely costing you a fortune in interest. It is best to always assume they will work in THEIR interest not yours. They want to earn money. (No - not bitter at all!!!)

Savvy_Spender_South

Really avoid this! if you have a balance of 1500 already, you will need to pay off 900 before you touch the 500 cash advance (presuming you BT 600 inwards) plus you will pay a % fee for the BT and you will will pay a % cash advance fee for Nat West, so many charges and extras and higher interest means for a £500 advance, expect £600 in real cost plus high interest for as long as it takes.

Try cash back on your CC through supermarket tills (some do this still)
overdraft at Bank or extend your current one.
only use a CC for a month instead of cash to lessen the requirement (even use a CC for £1 coffee!)

Cash advance/balance transfer is right down there in the list of bad choices buddy.

matte1234

Just seen this: http://www.moneysavingexpert.com/news/cards/2010/08/mbna-begins-credit-card-payment-shake-up-?utm_source=forum&utm_medium=sidebar&utm_campaign=box

By the end of this year, payments must clear your most expensive debt first, following the agreement between the Government and the card industry (see the Credit card crackdown MSE News story).

They'll just stick rates up to fill in their shortfall.

matte1234

Savvy_Spender_South wrote: »

Really avoid this! if you have a balance of 1500 already, you will need to pay off 900 before you touch the 500 cash advance (presuming you BT 600 inwards) plus you will pay a % fee for the BT and you will will pay a % cash advance fee for Nat West, so many charges and extras and higher interest means for a £500 advance, expect £600 in real cost plus high interest for as long as it takes.

Try cash back on your CC through supermarket tills (some do this still)
overdraft at Bank or extend your current one.
only use a CC for a month instead of cash to lessen the requirement (even use a CC for £1 coffee!)

Cash advance/balance transfer is right down there in the list of bad choices buddy.

Thanks, I knew it would be a bad idea just needed confirmation.:D

I can get the cash on my overdraft.