Order of payments on Lloyds Credit cards

want2be

Can anyone tell me the order in which payments are made on a Lloyds credit card for a new balance transfer.

Lloyds do not seem to know for sure! So thought I woudl ask here, as I thought the law had now changed.

Bit concerned as they charge interest on the fee, which assume is at 19% or thereabouts!

Any

http://www.moneysavingexpert.com/news/cards/2011/01/credit-card-payment-trap-ends?utm_source=forum&utm_medium=sidebar&utm_campaign=box

Read here...
All credit card companies must allocate any payments to the most expensive debt first now.

want2be

Thanks.

Says 17th January.

So assume that as long as the next statement is after that date they will allocate the payment to the highest rate first.

If before then they will allocate to the balance transfer (0%) first.

Mind you they simply say they charge interest on the balance transfer fee - doesn't say at what rate! But assume it is the regular high rate.

Any

want2be wrote: »

Thanks.

Says 17th January.

So assume that as long as the next statement is after that date they will allocate the payment to the highest rate first.

If before then they will allocate to the balance transfer (0%) first.

Mind you they simply say they charge interest on the balance transfer fee - doesn't say at what rate! But assume it is the regular high rate.

Yes, I would assume it is at their normal rate.
The interest will be tiny, few quit max, even if it is allocated next month (unless you transfered tens of thousands..)

Or make an extra payment after the 17th to cover the fee if you can.. that will avoid higher interest too.

chris91_2

There was a terms and conditions change issues recently by LTSB, all the information is in that but yes the date for the change is 17th January.

want2be

Thanks again. I reckon the 3% charge will be around £350 so we will probably pay this off to avoid interest on interst as the monthly repayment will be a lot less.

Then in 6 months we can do it all again. Deep joy....

Still, it is cheaper than a loan (this BT works out at 6% pa)

Any

This looks like an offer on existing card..

Is this the best you can get? Did you try applying for brand new card with longer 0%?

bendavidson

As at 8th Jan, Lloyd's T&Cs for credit card oder of payments have not changed. Eg for the platinum card:

Allocation of payments
If you don’t pay off your balance in full your monthly payment reduces your balance in this order:
• Interest.

•

Charges listed in conditions 8 and 9 (other than your annual fee, if applicable) – see the Charges and Default charges sections below

for details of these charges.

•

Payment Protection Cover premiums (if applicable).

•

Balance Transfers and Cheques at 0%.

•

Other promotional Balance Transfers and Cheques, in the order they were added to your account.

•

Balance Transfers and Cheques charged at the standard rate.

•

Purchases (and your annual fee if applicable), in the order in which they are added to your account.

•

Cash Withdrawals.
• All other amounts.