Paying off new transactions while having a B/T - barclaycard

JohnM88

Hi all, sorry if this as been asked before but I've had a look and can't find anything, I've also ask barclaycard and couldn't get a clear answer from them either!

Basically I've got a barclaycard with an existing balance transfer, I don't normally use the card at all but I'm away with work and have had to put a large (4k) hotel bill somewhere, so it's gone on the same card.

I know barclaycard will use payments to clear the debt with the highest interest rate first, but what's not clear is if I have to wait until the new transactions are showing up on my MONTHLY Statement, or if I can pay off the new charges as soon as they show up one online account?

Don't want to mess up my balance transfer as I'm not planning on clearing it for a few more month...

Would really appreciate any advice

Thanks

John

[Deleted User]

It will say on your t&cs how they allocate payments. Most likley is that they will pay off statemented transactions first.

eskbanker

Since they'll charge you interest on the £4K from the day it's spent, best to pay it off as soon as possible rather than waiting for the statement!

MallyGirl

good point - interest only waived if you pay off in full which you won't due to the BT on same account.

thenudeone

eskbanker wrote: »

Since they'll charge you interest on the £4K from the day it's spent, best to pay it off as soon as possible rather than waiting for the statement!

However, the answer to the OP's question may make that advice wrong.

If BC pay off statemented transactions first (irrespective of the interest rate) then a £4k payment made before a statement was produced would reduce the 0% BT balance and leave the £4k spend as an interest-bearing balance even though you thought that you'd paid it off.

So - the OP is correct to check exactly how payments will be allocated in this situation. (BTW I don't know the answer)

If this is how BC do it (and I think some cards DO use this method), then IMO this would be a breach of the rules/guidelines/code of practice which was mean to ensure payments always paid off the highest interest rate first.