Same card, second balance transfer shorter period

moatmeister

For some reason I am struggling to get my head round this one!

Got a long term BT on a barclaycard that is never used for spending reducing nicely. They have offered a further BT on the same card for a shorter time period than the original. If I take them up on the offer, how does the repayment structure work particularly at the end of the 2nd time period? I am thinking that if there is still a balance owing will it start attracting interest or would it cause the original BT to start attracting interest?

grumbler

moatmeister wrote: »

... If I take them up on the offer, how does the repayment structure work particularly at the end of the 2nd time period? I am thinking that if there is still a balance owing will it start attracting interest or would it cause the original BT to start attracting interest?

Your Summary Box has to say this clearly - like this random one (Allocation of payments):
Read summary box

For allocation during the 2nd time period see your T&C. I am pretty sure that the payments go towards the balance which 0% expires earlier.

Tixy

You'd need to firstly check the T&Cs to see what order your payments would be allocated. Whether they'd be paying off the first or second transfer first (whilst both are still at 0%).

Based on that if there will be a balance left at the end of the deal that ends soonest then at that point that part of the balance will start to attract interest (but also at that point any payments will obviously repay that balance first).

moatmeister

Thanks both I will have another look at it all later!

moatmeister

Here is the official response to the same question received from Barclaycard:

Dear Cardholder

Thanks for your email.

In response to youir query I would like to inform you that where accounts have multiple promotional balances at the same rate (i.e. 2 x 0% Balance Transfer's), payments will be applied to the balance with the earliest expiry date first.

Please be advised that your payments are allocated to your account in the following way as set out in our terms and conditions.

If you do not pay the total outstanding balance in full by the payment due date, we will apply the amount you do pay to reduce higher interest rate balances before lower interest rate balances.

Payments are applied to balances in the following order;

1) Cash Advance fees

2) Cash Interest

3) Cash Balances

4) Default Fees

5) Purchase Fees

6) Purchase Interest

7) Insurance

8) Purchase Balance

9) Interest on Promotional Balance(s)

10) Promotional Balance

11) Default Fee Interest.

If you have any further queries, please get in touch.