Balance transfer question

dazedandconfusedwiltshire

Hi.

I have a balance transfer question that I'm hoping you might be able to answer for me.

I have two credit cards. The first has around £1k on it at the card's standard interest rate and £1.5k that I have recently transferred on a 0% offer from my other card. I now have a 0% offer from my second card which currently has £0 balance. 

I know that when making payments they should be allocated to the highest interest rate portion of the balance, but is the same true with balance transfers? If I transfer £1k to my empty card, will that be the £1k currently at the card's SVR, or will it be taken from the £1.5k that's currently on 0%?

Many thanks,

Andy

MorningcoffeeIV

It will always go against the highest statemented rate balance.

CliveOfIndia

If you do a BT, that will go towards the highest-rate portion of the debt.

When you do a BT from Card A to Card B, all that happens in essence is that Card B makes a payment to Card A for you.  So as far as Card A is concerned, they've just received a payment - they don't really care who it's come from, they've received a payment and will allocate it as per their standard T&Cs.

dazedandconfusedwiltshire

Thank you both for your responses.