Credit card payment

Hi, I have a credit card with lloyds bank that had a balance transfer on it at 5.9% and then I had some purchases at 25.50%, when I’ve made payments it’s not been coming off the highest earning interest, is this right? I was under the impression that this is the way it should be, am I wrong? If not, is there anything that I can do about it? Thanks

Comments

  • la531983
    la531983 Posts: 1,661
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    Well in hindsight I wouldnt have complicated the issue by mixing purchases and balance transfers on the same card, but its too late now.

    Usually yes but what do their terms and conditions say?
  • Hi, I have a credit card with lloyds bank that had a balance transfer on it at 5.9% and then I had some purchases at 25.50%, when I’ve made payments it’s not been coming off the highest earning interest, is this right? I was under the impression that this is the way it should be, am I wrong? If not, is there anything that I can do about it? Thanks
    When are you making payments?  Before the purchases have statemented?
  • eskbanker
    eskbanker Posts: 29,836
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    Hi, I have a credit card with lloyds bank that had a balance transfer on it at 5.9% and then I had some purchases at 25.50%, when I’ve made payments it’s not been coming off the highest earning interest, is this right? I was under the impression that this is the way it should be, am I wrong? If not, is there anything that I can do about it? Thanks
    Repayments must be applied to the debt at the highest interest rate first, as specified in the FCA Handbook:
    firm must first allocate a repayment to the debt subject to the highest rate of interest (and then to the next highest rate of interest and so on) for: 
    1. the outstanding balance on a credit card; or [...]

    https://www.handbook.fca.org.uk/handbook/CONC/6/7.html

    Had the purchases definitely appeared on statements?
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