Balance transfers when you have different promotional offers....

bugzie92

Hello,

I have a few different cards which currently have promotional offers on.

My Halifax currently has an offer on for 0% on balance transfers.
My MBNA also has the same.
I was thinking of transferring my Halifax to my mbna and my mbna to my Halifax, as the promotional offers on both are much better then they are at the moment. However, my query is if I transfer say £1000 from Halifax to mbna, and then £1000 from mbna to Halifax, will the promotional offers on offer apply to the newly shifted amounts? Basically when your shifting money around does the money accruing the highest interest get moved first? I'm just worried that if I shift £1000 from Halifax to mbna (to get the 0% deal) then shift the mbna to Halifax, that the "new" £1000 will be moved, and not the "old" £1000 I currently have that's about to start accruing high interest soon.
Thanks

[Deleted User]

bugzie92 wrote: »

Basically when your shifting money around does the money accruing the highest interest get moved first?

Yes. .

bugzie92

Does the same apply in terms of 0% expiry date? So the earlier promotional offer moved first? I don't want to get tripped up on say the second promotional offer having a higher interest then the first, but expiring much later, for example.

[Deleted User]

Check your terms. It varies by lender.

It may be the one that ends first, or the one that started first, or even something else.

bugzie92

Is a balance transfer considered the same thing as a "payment" when it comes to terms about allocation for payments? For example, Halifax say that payments go towards the oldest balance first. So if I was to transfer £1000 from Halifax to MBNA (having just transferred £1000 From MBNA to Halifax) I would presume the £1000 being transferred is the older £1000 which is expiring sooner then the fresh £1000 I just transferred. If a balance transfer is treat the same as a payment then that would make sense?

[Deleted User]

Yes, it's just a payment.