will i end up paying interest?

vernall

hi guys

i wonder if somebody can clarify this for me,ive tried to get my head round it but am being a bit thick i think lol

i have a balance on a virgin credit card of £500,this is at 0% until mid january.the card has a current offer on of 0% on spending until april.

if i was to spend on the card lets say £1000,how would my payments be allocated to the balance come mid jan now the new FSA ruling has come in,or shortly does?

e.g. if i didnt pay the original £500 off by mid jan,is it this that will be paid off first with my monthly payments leaving the £1000 interest free till april?

thanks

twist-and-shout

If you have two or more promotions at the same rate the payments will be allocated the the promotional balance which started first.

Don't get this confused with when you took the offer up it's when the promotion gets added to the computer system. If you phone them up they will tell you which one started first if you don't know.

If they both started at the same time then they will pay off the one with the highest standard rate first.

vernall

the £500 at 0% was a balance transfer and had to be done by the beginning of august.this current 0% spend has just started. so the £500 will be paid off first come mid jan(when it reverts to the standard rate)?

YorkshireBoy

vernall wrote: »

so the £500 will be paid off first come mid jan(when it reverts to the standard rate)?

It would be anyway, due to MBNA's favourable order of payments*...meaning balances at a higher rate (which yours would be when it reverts to standard) are repaid first before lower rate, ie 0%, balances.


* All providers will operate this way from January 2011, but MBNA have already started as of 1st September this year.