Barclaycard order of payments

UsetheFORCE

If You have a Barclaycard with a 5 month 0% purchase deal and 6.9% Lifetime BT operating concurrently.

When you make a payment, does all the payment goes against any purchases you have made?

Thanks in advance.

rb10

On all credit cards, payments will go against:

1. Statemented balances, with the highest interest rate first; and then
2. Unstatemented balances, again with the highest interest rate first.

So payments during the 0% period will go against the BT first (as this has the highest interest rate).

After the 0% purchase period has finished, any purchase transactions will have the highest rate, so any payments will go against these.

It's generally not a good idea to mix BTs and purchases on the same card, to minimise the interest that is charged.

thenudeone

Statemented balances do not always get cleared first.

For example here is the text of the Virgin card terms:

Allocation of payments
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.

http://uk.virginmoney.com/virgin/credit-cards-v3/pre-apply.jsp

It doesn't even mention whether balances are statemented or not.

The change to "positive order of payments" was supposed to mean that the highest rate balances would always be cleared first. If statement balance take priority, the customer could be back to square one and not getting the benefit that they were supposed to.

zerog

If I have a 0% BT and needed to get a cash advance from the card, is it correct that I would have to wait until the cash advance got statemented before I could pay it off (thereby incurring 30% APR or so), the only alternative being to pay off the entire balance + cash advance?

(I understand that a BT card should never be found in one's wallet, just checking)

YorkshireBoy

thenudeone wrote: »

It doesn't even mention whether balances are statemented or not.

You were quoting the summary box, not the actual T&Cs.

The T&Cs do make reference to 'unstatemented' transactions in condition 4.1 ...

4 Payment allocation

4.1 We will allocate your payment towards paying off amounts that are charged at higher interest rates before those that are charged at lower interest rates (including amounts added to your account after your statement date up to the date your payment is credited to your account).

YorkshireBoy

zerog wrote: »

If I have a 0% BT and needed to get a cash advance from the card, is it correct that I would have to wait until the cash advance got statemented before I could pay it off (thereby incurring 30% APR or so), the only alternative being to pay off the entire balance + cash advance?

Bearing in mind we have two possibilities (ie Halifax and Barclaycard transactions must be statemented, and MBNA don't have to be), perhaps you should say which card you have.

Better still, now you know what you're looking for (search 'allocation of payments' or 'payment allocation') why not check your card's T&Cs and see what they say about it?