Payments...how does this work?

QuerulousMoose

Hey,
I've had a credit card with 0% purchase for three months and 0% for transfers for 18 months.

The 3 months ran out October but I forgot and paid for a new mattress in the CC. 

Long story short, if I pay off the amount paid for the mattress before the month is out will this pay this off and I won't be charged interest? Or will this be put toward my general amount owed and I'll pay interest on the amount paid for the mattress? Or will they start charging me interest in the full balance of the card which is what my better half reckons will happen?

Many thanks

Nebulous2

You need to read the terms and conditions relevant to you. Cards vary. It’s possible that paying money in now will simply reduce the 0% interest balance. If that is the case then you may want to wait until you have a statement, then pay off the mattress. 

You aren’t going to accrue interest on the whole balance, or at least not on any card I know. 

QuerulousMoose

Thanks Consumerist, thoroughly grateful for your help. Not what I wanted to hear but hey, lesson thoroughly learned on this one! I've only ever used CC's for either purchases within the term or for paying off balances long term, like you said real pity I forgot on this one! 

Thanks again 👍👍👍

Consumerist

You will be charged interest on the purchase but any money paid in should reduce the debt at the highest interest rate first (purchases, in your case).

Consumerist

QuerulousMoose said:

Thanks Consumerist, thoroughly grateful for your help. Not what I wanted to hear but hey, lesson thoroughly learned on this one! I've only ever used CC's for either purchases within the term or for paying off balances long term, like you said real pity I forgot on this one!

Sorry QM, but I deleted my original post in order to clarify my meaning. Hope the later post helps.

dld2s

Wait until bill comes in first, then pay money in, they will most likely take it from the % interest bill if you pay before statement

stokegal

Consumerist said:

You will be charged interest on the purchase but any money paid in should reduce the debt at the highest interest rate first (purchases, in your case).

Should do however not all lenders work this way. PayPal credit for example do not work this way. I had a 19.9% transaction a 17.9% transaction and 0% transaction and I made a payment of everything but the 0% transaction - PayPal then allocated the payment across all 3 transactions - in PayPal’s case you can call them and ask them to reallocate the payment but it’s shocking that they don’t do this automatically 

Consumerist

stokegal said:

Consumerist said:

You will be charged interest on the purchase but any money paid in should reduce the debt at the highest interest rate first (purchases, in your case).

Should do however not all lenders work this way. PayPal credit for example do not work this way. I had a 19.9% transaction a 17.9% transaction and 0% transaction and I made a payment of everything but the 0% transaction - PayPal then allocated the payment across all 3 transactions - in PayPal’s case you can call them and ask them to reallocate the payment but it’s shocking that they don’t do this automatically 

I am surprised at this approach. I thought that card companies were required by regulations to apply payments to the highest interest rate(s) first. Only where two transaction-types are at the same rate, should any allocation be necessary.

Have I got that wrong?