...to not understand how credit card payments work?

[Namechangearooney1]

I've got a credit card which I've transferred a balance of £1000 onto at 0% for 12months. I need to spend about £100 on the card this month. The deal for purchases is 0% for 3 months.

If I pay an extra £100 next month to cover the spend, will that pay off the £100 I've spent or will it come off the £1000 balance transfer? What I'm trying to work out is - I'm not going to have cleared the card within 3 months, so will I start being charged interest after 3 months for the £100 spend? I don't get how it works!

Does that make sense??

The t&c's should say how they allocate each payment. Which card is it?

Usually in the terms and conditions it will specify and in my experience normally the payments would come off the balance transfer yes so I would expect after 3 months for you to be charged interest on the £100.

You can ring and ask them, they are usually quite helpful

Typically any payment clears the oldest but if the debt, in this case the balance transfer.

Thank you, all! Think I'll ring them and check!

They used to take payments off the lowest rate balance first, but I think now they do it the other way round. Check though!

I thought they now had to take the money off the spend with the highest interest rate first? Because they had been doing it the other way round because it made them a lot more money that way, but is unfair to the customer.

Google 'order of payments credit cards uk' and you should see a link to the explanation for your particular card that explains how it works.

As per barbaraofseville, the rules changed and cc companies now have to credit payments to the highest interest portion of the debt unless specified otherwise.

Just spoke to them - 10 points to those who said they take the money off the highest-earning balance first. Thanks all!