Order of payments question (Barclaycard)

Milarky

Need to pick brains:

I've got a Barclaycard with an existing balance at 0% LOB (and no conditional spend) making minimum payment. In principle will never pay interest. BUT

Have applied for 'upgrade' to 2% Cashback Barclaycard.

If I want to retain the balance transfer but also make qualifying purchases with the card too, will I come unstuck over the order of payments if I just make a purchase...repay its value.. make a purchase.. repay its value.. make a purchase.. repay its value (etc) (i.e. as quickly as possible) during the statement period the purchases occur as opposed to after the statement is produced?

Something tells me that if you have an existing balance then payments made onto the account before the statement comes out won't remove those transactions - but will simply reduce the existing balance.

[Have I got that right or not?]

ta

jamesjenkinsyates

I believe the law recently changed so that the msot expensive debt gets repaid first.

Milarky

That was in 2010 I think but applies only to the end of a month I assumed. It's become academic since I have now cleared the said balance and gone into the new statement period.

Barclaycard did 'confirm' my thinking when I spoke to them: which is that you can't 'spend then pay' within the month and expect the order of payments rule to remove those purchases - simply because you have 0% balance already on the card. The order of payments here will only apply to the last statement. The net effect is that you would be reducing the 0% balance whilst not touching the purchases which fall in the current period. You'll then get charged interest on those purchases - probably at the next statement.