Credit Card Payment Query

Divorcing

Hi All

I seem to remember that CC companies now have to apply payments to the balance that attracts the highest interest rate, ie: if you have 0% balance transfer rate and higher for purchases it would go towards the purchases. Is this correct?

The card is a Barclaycard if that makes a difference.

Thanks for reading

Th:ink I have found the answer, I assume it will be the same principle for a balance transfer. Martin said:

'This is a balance transfer only deal, meaning only shifted debts are included. Any existing or new debts on the card from spending remain at their normal high rate – 16.9% to 29.9% (depends on your credit score).
This isn't as much of a problem as it once was. If you have debts at different rates on the card (e.g. spending debts at 19.9% and balance transfer at 6.9%) Barclaycard now biases your monthly repayments towards paying the most expensive debts off first (it used to pay off the cheapest, leaving the others quickly accruing interest).'


Here:


http://www.moneysavingexpert.com/credit-cards/barclaycard-offer-loophole

Tixy

Hi

Yes that is correct.

One thing to be cautious of is that most credit card providers will always allocate payments to the previous statement balance first (before any transactions that have happened since the last statement).
So if you do have to make a purchase on a card that you have 0% on balance transfers then wait until the purchases appear on the next statement before you pay them off.