Allocation of payments

sirius60

Hi I want to do something but I'm not sure I understand what I'm doing properly and so whether it will work so the community's advice would be much appreciated. Here goes...

I want to take advantage of a transfer cash offer from my cc, which is barclaycard. I want to lend the money to my daughter for a rather large expense that has come up.

I know that the interest I would pay if I went over the interest free period would be much higher than purchases _pale_. However the plan is to put the repayments she makes into a separate bank account and then the month the interest free runs out paying that off the credit card.

If I have understood the 'allocation of payments' for the card the whole of that payment would then come off that high interest cash transfer. Have I got that right?

TIA

[Deleted User]

It will pay whichever part of the balance is at the highest rate (and statemented) at the time.

marty2be2000

Deleted_User wrote: »

It will pay whichever part of the balance is at the highest rate (and statemented) at the time.

In other words, if you already have a promotional balance at 0% in addition to the cash advance at 0% (at the time of the statement) then the payment would be allocated between both the cash and the other balance as the rate was the same when the statement was produced.

However the following month when the cash advance becomes standard APR then the whole payment would be allocated to the higher rate cash advance, but you would have paid some interest that month and that interest will continue to accrue until the card balance is paid in full.