Different 0% periods on card

lynneg444

I've just taken a 0% balance transfer card - period is 37 months. But they also offer 0% for money transfer - period is 20 months.

If I take small money transfer say £500 and a larger balance transfer, approx £4,000. Will I end up incurring interest charges on the money transfer after 20 months as I know the entire balance won't be cleared in that period? I am calculating to have it all cleared in 37 months so not sure if taking a small money transfer will end up costing a lot in interest which is what I am trying to avoid.

Will they take a portion of repayments for the money transfer and balance transfer?

Not sure if I'm explaining this clearly!!
Thanks
Lynne

20aday

Once the promotional period expires on your Money Transfer you'd start paying interest, yes, and it's worth checking the card's summary box as they tend to have an higher APR.

I don't know who your lender is Lynne but I'm with Barclaycard and they allocate the repayments to whichever offer is ending sooner.

lynneg444

It's an MBNA card.

molerat

You need to carefully read and understand para 4 of the T&Cs as MBNA have a slightly unusual allocation to most cards.

If both promos start on the same date then all payments will be against the money transfer as that has the highest interest rate at the end. If the MT promo starts after the BT then all payments will go against the BT as that starts first so you will be left with the whole MT to pay off at the end of its time.

Ben8282

If you can be patient for a couple of months, there is one very easy and very sure way of establishing how the payments are being allocated.
On your statements the balance transfer and money transfer should be listed separately with the corresponding amounts. Wait until a payment has been made then on the next statement you will be able to see which of the balances have been reduced by the amount of the payment made. You will then be absolutely certain where the payments are being allocated.
When I have had multiple balance transfers on the same card I have found that the payments are allocated in the order that the balance transfers were applied to the account. But different providers may do things differently.

Marcio45

Hi
I have a card with HSBC and it appears they work it out differently.
I got the first transfer when i got the card and the 0% interest period was for over 30 months. I got further balance transfers on offers that appeared after, but for 20 months 0%. So the later balance transfers at 0% actually finish before the first one.

But my payments are going towards the first balance transfer, which means that the balance transfers at 0% that ends up first are the last to be paid off. To make it clear, my payments are going towards the first BT ever made and not to the one which period at 0% ends first.

I know that Barclaycard are fairer in this sense as they apply payments to the offer that ends up the soonest. Crafty HSBC...

lynneg444

Thanks I will check this when the statements come in.