Barclaycard - order of payments?

ronaldmacdonald

Hello

I have the Barclaycard 18 month 0% BT and 3 month 0% purchases.

I have carried out a BT onto this card. I want to make a small purchase using this card say £20. If I were to pay £100 in to the card to cover this purchase would, in 3 months time, interest be applied to the BT amount? Im curious as I want to take advantage of the 18 month 0%.

Ronald

DizzleUK

The short answer is no.

You will be charged no interest on you BT balance for 18 months as per the terms of the offer, regardless of whatever else you spend on the card. For the first 3 months you won't be charged interest on purchases either. After that, if you settle your purchase balance in full each month you will not pay any interest there either.

Obviously if you go over limit or are late with a payment you may forfeit the remaining months on the interest free period.

If you do leave a purchase balance each month, you will be charged interest on that part only. After the 18 months, if you still have an outstanding BT balance, you will be charged interest on this too.

ronaldmacdonald

Hi - thanks for clarifying - I have heard some horror stories regarding order of payments on cards and wasnt sure if this sort of thing still goes on!

Ronald

izools

DizzleUK wrote: »

After that, if you settle your purchase balance in full each month you will not pay any interest there either

This is not correct.

Whilst payments are now allocated to the more expensive debt first, or in the case of a card where there is time left on a balance transfer promotion but the purchase promotion has expired, the payment will be allocated towards the purchases first, yes.

But interest still remains payable from the date the purchases were made, up until the date they were paid for unless the entire statement balance is cleared in full each month, including the balance transfer balance.

This one catches out many people, including my OH on his HSBC card which has an outstanding Bal xFer balance - made purchases, paid for them a couple of weeks later + bit more towards the bal xfer and interest remained payable on the purchases. Correctly.