Credit card payment

GreenArmy793

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

la531983

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?

MorningcoffeeIV

GreenArmy793 said:

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

GreenArmy793 said:

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:

A 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?