MBNA 0% on supermarket purchases scam

Soundgirlrocks

I'm a bit confused, I have an MBNA card which had the same offers available. I paid the balance in full at the start of the month, and decided to make use of the 0% on balance transfers and 0% on petrol. I transferred £900 into my current account to clear my over draft and £77.24 on petrol. I also used the card to pay for a couple of other bit and bobs this month totalling £82. I paid £45 for the balance transfer. I was planning to pay £150 off when I get my next statement and thought this would mean I would not pay any interest on the balance on the card. Have I got this wrong? I thought that the law had changed and credit card companies had to use any payments to pay off the highest APR first??? Will I have to pay interest on the £82 as I will have paid it within 30 days?

[Deleted User]

If you don't clear your balance in full, you'll pay interest on the full amount (at the appropriate rate for each transaction).

ashleypride

Anacrusis wrote: »

Although £50 interest on £200 sounds extremely high

That's the mistake I made. He wasn't charged any interest on the £200, he was charged interest on the £2,200 as he didn't pay off the balance in full.

chattychappy

Soundgirlrocks wrote: »

I was planning to pay £150 off when I get my next statement and thought this would mean I would not pay any interest on the balance on the card. Have I got this wrong? I thought that the law had changed and credit card companies had to use any payments to pay off the highest APR first??? Will I have to pay interest on the £82 as I will have paid it within 30 days?

Yes, the rules have changed and indeed MBNA implemented the change early (September last year, I think). They will use your payments to pay off the highest APR first. But there will still be a gap between your spending the £82 and the payment arriving. You only escape this charge if you pay off the entire statement balance.