Does Barclaycard allocate repayments to high rate unstatemented balances before promotional rate?

Andrea_jardin

Does Barclaycard allocate repayments to high rate unstatemented balances before promotional rate statemented balances?

Example:
Customer has longstanding £5,000 balance at 0%
Statement date is 1 July.
Customer makes a £100 purchase at 19.9%APR on 2 July
Customer makes £125 repayment on 7 July.

Does the £125 all go against the £5,000, or £100 against the purchase and £25 to the £5,000?

Thank you. 

D3xt3r5L4b

Payments are allocated to the highest interest yielding balance.
You shouldn’t mix everyday payments on a 0% card though. 

MinuteNoodles

Yes they do, it's a legal requirement that they assign payments to the debts with the highest rates first. I can't remember when the law was changed but it's a good few years ago now.

mrsplinter

£125 payment would be deducted from your statement balance which on 1st July would be the £5,000 at 0%.

See below the Barclaycard terms for payments.

Allocation of Payments

Your payments will be applied in the following order: • To make any instalment plan payments due for that month. • To reduce your main balance (your statement balance less any instalment plan balance). We’ll start with the balances charged at the highest interest rate first and then reduce the lower rate balances, and then • If you’ve taken out any instalment plans, to reduce any remaining instalment plan balance. Please see your Barclaycard Conditions for further details.