MBNA card, have I lost my 0% by making a purchase

angelsmomma

I recently got the MBNA card at 29 months 0% on balance transfers. It also had a 3 months 0% on purchases.

I used it to pay my vet in an emergency thinking it would be ok as it is in the 0% for purchases but think I have made a mistake as I don't understand how it works.

Once the 3 months are up or will the balance transfer 0% end with the purchases 0% at 3 months meaning interest is payable on the remaining balance or will the balance transfer still run at 0% for the 29 months, with interest only payable on the purchases?

If I pay off the whole purchase amount right away will that mean the balance transfer runs at 0% for the 29 months.

I know writing this that it sounds stupid that I spent on the card without understanding the terms but as I said it was an emergency and I just didn't think.

Any help on this would be much appreciated. Thank you

StuC75

You have to wait for the transaction to be on the statement - since payments would usually go to that first..

Payments are allocated first to statement amounts then to interim transactions..

So in this case if you paid that now - it would only go against the BT and not the transaction..

MBNA Statements are quite good for showing what the balance is made up on (check through and you will see).. then you can make the payment and it will go towards the highest rates first..

I usually avoid such purchases when a bt is in place.. as technically there purchases may not be interest free since the previous balance (inc the BT) hasn't been paid in full.. Im sure either way a quick polite call to mbna will get the resolution you want...

Cycrow

im assuming the card already had a balance that was from a transfer from another card ?

when the 0% for purchases ends, you will start paying interest on what ever amount of those purchases are left. Once they are payed off, and you only have the balance transfer left, then you will no longer pay interest until the 0% ends on that.

you will only lose the 0% on the balance transfer if you dont follow the T&C, ie, you dont make the minimum payments when required

angelsmomma

Thank you both for your answers. I am usually so on the ball with finance and never use the same card for balance transfer and purchases.

StuC75 I have not yet had the first statement so that is good news that they are easy to understand.

Cycrow that was my worry, that I would lose the balance transfer 0%, I am not too bothered about paying interest or even paying off all the vets fees since I still have until 18th April until the 0% on purchases ends.

guesswho2000

Don't pay the purchase balance off until is is bearing interest (so when the three months 0% expires)!

MBNA allocate payments on 0% balance to the one which reverts to the higher rate, not the one which ends first, they also tend to charge different rates to purchases, BTs, Money transfers and cash, in that ascending order - your BT will almost certainly revert to a higher % than the purchases, despite the purchases becoming chargeable sooner.

That in mind, wait until the 0% on the purchases expires, then pay the lot in one go. You'll pay some interest, but not very much.

thenudeone

When I last had an MBNA card, if you had several 0% offers on the go, and made a payment, they allocated it to the offer with the earliest start date, which may not be the one which ends soonest or has the highest rate.
Even customer services gave me wrong information about payment allocation in a secure message, so check the terms carefully to see exactly how any payment is really allocated. If necessary, wait until 1 day after the offer ends before making a payment, to ensure it's allocated how you want.

angelsmomma

They both had the same start date but the BT has 29 months 0% and the card only 3 months 0%.

I have secure messaged but it is 2 days minimum for a reply.

The T&C's are really confusing, I have read them over a few times it says in one part, If the promotional rates have the same start date, we will then pay off the part which will be charged at the highest standard rate at the end of the promotional period.

The next paragraph states; We will then apply your payment to balance transfers, cash advances, money transfers and then card purchases in that order so it is as clear as mud to me.

Thanks everyone, I will just wait and see what the secure message service brings me.