Credit card balance and payment allocation

arciere

Can someone clarify this for me please.

I have a total balance of £1,000 on my Barclaycard (rounded to make it easier). I have £700 on 0% until August 24 and £300 on 0% until March 24.

Last month I made some purchases for about £350. I repaid £350 few days later (but before the new statement).

I got the new statement and now my transfer balance of £300 is gone and my "main" balance is £350 (plus the £700 0% balance).

How's that possible? I thought Barclaycard would allocate my £350 payment towards my recent purchases and not the balance transfer with 0% till March 24? Is it because I paid before the statement was generated?

WillPS

You've learned the hard way that mixing purchases and long-term balance transfer offers is a bad idea.

You can contact Barclaycard and ask nicely if they would change it around, but it'll be at their discretion.

Failing that I would pay the entire balance ASAP to avoid further interest being charged. At least the numbers involved are relatively low.

arciere

I have already paid whatever non-promotional balance I had left on the statement, I just don't understand why they decided to allocate the payment that way, since they clearly state that non-promotional balances are cleared off first.

Dobbibill

They allocate payments to anything that has been produced on a statement first.
As you had another balance on your statement before the purchases this is where the funds were allocated.
It would have worked fine for you if that had been an empty card paying things that soon.

DullGreyGuy

Dobbibill said:

They allocate payments to anything that has been produced on a statement first.

Regulations state that they must allocate the monies to the highest interested bearing statemented balance. If all three are on 0% then its down to the T&Cs of the card to decide which balance it goes to. The OP doesnt say if the purchases will be interest free or not but subsequent messages suggest they wont be.

arciere said:

I have already paid whatever non-promotional balance I had left on the statement, I just don't understand why they decided to allocate the payment that way, since they clearly state that non-promotional balances are cleared off first.

From what you say you paid it before the purchases had been put on a statement and hence the monies werent allocated to them. You should have not paid it a few days later but the day the statement was produced with them on.

molerat

All explained in the card T&Cs

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.

arciere

Thanks, I missed that section in T&C.

All sorted now, I'll keep in mind that I must wait for the new statement to generate before I try to pay off non-promotional balances (those purchases were not on a 0% rate)

sanddav

Hi All.

Thanks to all the contributors to this post - this has helped explain exactly my current situation. I was bemused as to why having diligently paid off some transactions a day or 2 after making them (which I only did to try and gain cashback points on my card), that now I seem to be being charged interest on those same transactions, and my 0% transfer deal balance which runs to Jul 2025 has suddenly dropped right down.

I will re-adjust my payment strategy for next time.

pfpf

Tagging on here as I think I'm asking the same thing for confirmation as this goes against everything I thought about mixing offers/daily use 
I have a BC and use it for virtually everything I buy, paid off in full monthly. 
I continuously have a great 2 year BT offer on the card but never use it as it's my everyday card.
Am I understanding things right regarding a BC. I could have a balance, make a BT on the offer, continue using the card for daily use and the interest free element would remain in tact and no interest added if I pay all other monies owed each month?

E.g.
Balance £100
BT £1000 + fee
Spends £200.
Statement issued.
Pay off £300, that pays off the 100 and 200 and the BT is unaffected?