Barclaycard....clarification please!

walesrob

Hi guys,

I have a Barclaycard Platinum, with a 2K limit. When I first got the card I did a balance transfer of £900 with the 22 months BT offer.

In April whilst in Spain I had to withdraw £500 in cash on my Barclaycard - yes I know you should never take out cash on a credit card, but this was an emergency and was unavoidable. However, on the next statement dated 5th May (just 8 days after said cash withdrawal), I paid £650 back to cover that cash withdrawal + cash machine fees + exchange fees + some of the existing balance.

So, how I look at it is that I have cleared the cash withdrawal and associated fees, yet now in July I was charged £8 cash interest. Even worse, I will be charged an estimated £8 next month.

Now, I was led to believe that the T & C's had changed so the payments to my Barclaycard account would be for balance transfers last, and purchases and cash withdrawals first? Can someone clear this up?

StuC75

The statement should advise the different types of balance you have.

Worth noting that although the BT should stay on the 22 month deal.

Cash advances have no interest free period, so the interest and balance will carry 'trailing interest' from the statement to when you do actually pay off the remaining amount.

Because of the BT other purchases will not have the upto 56 days (depending on time between due date & statement date) interest free period as that requires full balance to be repaid..

thenudeone

The estimated interest for next month shown on the statement is based on a number of assumptions which should be shown on the statement. The most important assumption is usually that you'll only pay the minimum payment next month.

Since you've paid much more than that, the interest charge will be much lower.

Since there is never any interest free period for cash withdrawals, it's usually best to pay them off as soon as you can, without waiting for a statement, as long as your card provider will allocate payments to un-statemented transactions first, if they have a higher interest rate than statemented transactions.