Can someone explain the payment allocation on Barclaycard Rewards?

IAMIAM

21st July - Statement Issued - £215 Balance
22nd July - £215 Paid Off In Full (this pays off statement balance first?)
22nd July - £15000 0% Money Transfer Completed (2.6% Fee) - Balance now £15390

23rd July to 20th August 2021 - General Spending of £1000.

21st August 2021 - Balance £16390.
21st August 2021 - Payment of £1390 made (390 fee plus 1k spending)

From 21st August Onwards, £15000 remains at 0%

Every month spend and pay £1k on Barclaycard, £15k will just remain at 0% and no interest charged at all, as all payments are being allocated to my spending....is this all 100% correct?

Ebe_Scrooge

Interesting.  The usual advice is never to put spending and BT/MT promos on the same card.  However, Section 16 in the T&Cs here https://www.barclaycard.co.uk/content/dam/barclaycard/documents/personal/existing-customers/terms-and-conditions-barclaycard-core-2020.pdf says

How we allocate payments

If a payment you make is less than your total outstanding balance as shown on your statement, we’ll use it as follows:

• If you have any instalment plans on your account, 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. If you have more than one promotional balance at the same interest rate, we’ll use your payment to reduce the balance with the promotional rate that ends first.

• If you have any instalment plans on your account, to reduce any remaining instalment plan balance. If you have more than one instalment plan, we’ll use your payment to reduce the instalment plan that ends first. If the standard balance includes default fees, we will pay those off before the rest of the standard balance. When you make a payment, we will always reduce the balances that appear on your statement before we use your payment to reduce the value of transactions that have not yet appeared on your statement.

So this would seem to agree with your assessment - payment gets allocated to the highest-interest debt first.

One caveat - you'll have to be prepared to stump up £15 grand in one lump sum when your promo rate expires, as you've not been making any repayments toward that MT in the scenario you describe.

kangaroorampage4

IAMIAM said:

21st July - Statement Issued - £215 Balance
22nd July - £215 Paid Off In Full (this pays off statement balance first?)
22nd July - £15000 0% Money Transfer Completed (2.6% Fee) - Balance now £15390

23rd July to 20th August 2021 - General Spending of £1000.

21st August 2021 - Balance £16390.
21st August 2021 - Payment of £1390 made (390 fee plus 1k spending)

From 21st August Onwards, £15000 remains at 0%

Every month spend and pay £1k on Barclaycard, £15k will just remain at 0% and no interest charged at all, as all payments are being allocated to my spending....is this all 100% correct?

I am using barclay rewards and have a much lower limit, how long did you balance transfer take? 

IAMIAM

My limit is £22000 although I’ve had it 2.5 years. I will be doing the transfer today/tomorrow. I have 0% for 24 months with 2.6% fee available 

kangaroorampage4

IAMIAM said:

My limit is £22000 although I’ve had it 2.5 years. I will be doing the transfer today/tomorrow. I have 0% for 24 months with 2.6% fee available 

IAMIAM said:

My limit is £22000 although I’ve had it 2.5 years. I will be doing the transfer today/tomorrow. I have 0% for 24 months with 2.6% fee available 

I had a 4,400 limit, how long do balance transfers take?

[Deleted User]

kangaroorampage4 said:

IAMIAM said:

My limit is £22000 although I’ve had it 2.5 years. I will be doing the transfer today/tomorrow. I have 0% for 24 months with 2.6% fee available 

IAMIAM said:

My limit is £22000 although I’ve had it 2.5 years. I will be doing the transfer today/tomorrow. I have 0% for 24 months with 2.6% fee available 

I had a 4,400 limit, how long do balance transfers take?

In my experience with Barclaycard and Natwest, usually paid within a day and updated on the app as paid within a couple of days

[Deleted User]

IAMIAM said:

My limit is £22000 although I’ve had it 2.5 years. I will be doing the transfer today/tomorrow. I have 0% for 24 months with 2.6% fee available 

Which is great but heed the advice above - if you're not paying off the £15000 capital it'll have to be paid at the end of the 24 months in one lump sum - no guarantee you will have another transfer of anything like that size to keep it going. I'd be paying £625 a month on top to ensure the balance was gone in 24 months unless I had a 100% cast iron safety net that I knew could pay it off and knew I would not need to touch that in those 2 years e.g. if I lost my job or similar.

IAMIAM

Deleted_User said:

IAMIAM said:

My limit is £22000 although I’ve had it 2.5 years. I will be doing the transfer today/tomorrow. I have 0% for 24 months with 2.6% fee available 

Which is great but heed the advice above - if you're not paying off the £15000 capital it'll have to be paid at the end of the 24 months in one lump sum - no guarantee you will have another transfer of anything like that size to keep it going. I'd be paying £625 a month on top to ensure the balance was gone in 24 months unless I had a 100% cast iron safety net that I knew could pay it off and knew I would not need to touch that in those 2 years e.g. if I lost my job or similar.

Agreed. I will be paying Circa 1800-2000 a month with around 750 in purchases. So hopefully will be paid off in 24 months by then. Just wanted to make sure the allocation of payments wouldn’t result in me being charged extortionate interest. Just felt the offer was too good to miss and use.