Credit Card Repayment

Alski2

Greetings, (From a first time poster and long time lurker)

Hoping that someone will be able to assist me....

I took out an MBNA credit card about 16 months ago with the 24 month balance transfer deal. I transferred £3000 onto the card on a 0% deal and have just paid minimum payments whilst I shifted other more expensive debts... This should still have another 8 months at 0%

In September last year I balance transferred another £1000 onto the card and this was 0% for a year...

I recently phoned MBNA to find out what the balance of the 0% deal was and was told that any monies paid would have gone to the oldest debt first...

I thought the law had changed so that the most expensive debt should be shifted first... In this case as both deals are at 0% should the deal that expires first be considered the most expensive debt?

If I wait for the day the deal expires and they then start to charge interest on the £1000 can I then pay off the £1000?
Will this come off the interest charging amount or the older debt which is still 0% for another 8 months?

Thanks for any assistance

YorkshireBoy

Alski2 wrote: »

I took out an MBNA credit card about 16 months ago with the 24 month balance transfer deal.

I don't remember such a deal. Are you sure it was a full 2 years?

Thanks for any assistance

You need to look at your personal T&Cs, and payment allocation will be explained there. In the current online T&Cs (see their website) it's condition 4.2, 2nd bullet. Are yours the same?

Alski2

The 0% expires in Feburary so may only have been 18 months....The second part of the transfer expires next month...

Should I balance transfer the whole lot next month or can I just pay the £1000?

I cant seem to find the T&C's? - Probably missing the obvious... but where do I find these?

Thanks

Alski2

never mind i've found the answer.... Guess I had to apply for a new card to find the terms and conditions easily...

We allocate your payment to amounts that are charged at higher interest rates before those that are charged at lower interest
rates.

• If we charge interest at the same rate on different parts of your balance, we will allocate your payment to the introductory
rate first.

• If two or more introductory rates are the same we will pay off the introductory rate with the earliest start date first.

• If the introductory rates have the same start date then we will pay off that part which will be charged at the highest standard
rate at the end of the introductory period.

• We will then apply your payment to balance transfers, cash advances, money transfers and purchases, in that order.


Based on that can I wait until the day the interest rate goes up and then pay off the £1000 or should I balance transfer it all?