How payments are applied...
Posted: December 30th, 2017, 11:18 pm
Hi all,
I find myself in need of some cash for 6 months or so, and am wondering whether to use the 0% money transfer offer on my Barclaycard. I know that a number of years ago, when I last had to do this, it was completely bonkers to use a card for a money/balance transfer, if that card was being used for purchases too, because of the order in which payments were applied. However, I understand that payments are applied differently now.
All our day to day spending goes on this Barclaycard, and it is paid off in full by direct debit every month. If I borrow some of the spare credit limit on the card, and then manually pay off the day to day spending in full the following month, plus an amount towards paying off the money transfer, will it work as I expect?
E.g. in January, day to day spend £1500 and borrow (money transfer) £4000.
In February, day to day spend £1200.
At the end of February (on or before the due date), pay off January's £1500 plus £500 of the £4000.
In March, day to day spend £1400
At the end of March, pay off February's £1200 plus £500 of the remaining £3500
Etc...
If I do as suggested above, will I avoid paying any interest, or doesn't it work like that? I understand that if I miss payment dates, it'll all go wrong, so please assume that I'm highly organised in that respect.
Thanks in advance for any replies.
Cheers,
Bee
I find myself in need of some cash for 6 months or so, and am wondering whether to use the 0% money transfer offer on my Barclaycard. I know that a number of years ago, when I last had to do this, it was completely bonkers to use a card for a money/balance transfer, if that card was being used for purchases too, because of the order in which payments were applied. However, I understand that payments are applied differently now.
All our day to day spending goes on this Barclaycard, and it is paid off in full by direct debit every month. If I borrow some of the spare credit limit on the card, and then manually pay off the day to day spending in full the following month, plus an amount towards paying off the money transfer, will it work as I expect?
E.g. in January, day to day spend £1500 and borrow (money transfer) £4000.
In February, day to day spend £1200.
At the end of February (on or before the due date), pay off January's £1500 plus £500 of the £4000.
In March, day to day spend £1400
At the end of March, pay off February's £1200 plus £500 of the remaining £3500
Etc...
If I do as suggested above, will I avoid paying any interest, or doesn't it work like that? I understand that if I miss payment dates, it'll all go wrong, so please assume that I'm highly organised in that respect.
Thanks in advance for any replies.
Cheers,
Bee