additional balance transfer on interest free credit card....

mysparkleismissing · 2025-08-31T12:54:38+00:00

I've got an MBNA card with a balance transfer 0% until summer 27 I'm looking at transferring an additional amount onto it which they are offering 12 months interest free. I'm just trying to work out in my head how the repayments work when you do this - do the payments I make go straight off the new balance?

IHaveRunOutOfIdeas · 31/08/2025 13:56

I think it comes off the balance that’s ending soonest.

Wolfpa · 31/08/2025 15:55

The most expensive things get paid off first so anything that wasn’t on a 0% interest deal then money gets taken from the oldest transaction first

Original poster

mysparkleismissing · 01/09/2025 08:10

Think I'll call today to check how they do it

OP posts:

Bjorkdidit · 01/09/2025 08:45

It should say in the tiny print on the back of your statement under 'order of payments'.

But I think it should be in order of highest interest rate first and then for anything with the same interest rate, oldest transaction to newest.

Which might mean that in effect you're going to lose some of your '0% until 2027' deal, because all the payments over the next year would come off that balance, so in a year's time when the new 0% runs out, you'll be left with all of the new balance transfer and the remaining part of the old balance transfer.

But that also means that in September 2026, you'll have all of your new balance transfer now attracting interest, unless you transfer that to a new deal. Which of course your CC provider will hope that you don't or can't do, and pay it down while paying interest.

Hope that makes sense and writing all that out has made me realise that it might be deliberate that your lender has made you a new shorter offer, because of course they don't make any money while people have 0% deals, so they have to hope that people pay interest afterwards, but people are more savvy and either pay the debt off during the 0% period, or transfer it on to a new deal. So they have to trick them into not doing this. So I'd take their kind offer with open eyes and caution and perhaps look for another deal with a separate card instead.

Original poster

mysparkleismissing · 01/09/2025 08:51

Bjorkdidit · 01/09/2025 08:45

It should say in the tiny print on the back of your statement under 'order of payments'.

But I think it should be in order of highest interest rate first and then for anything with the same interest rate, oldest transaction to newest.

Which might mean that in effect you're going to lose some of your '0% until 2027' deal, because all the payments over the next year would come off that balance, so in a year's time when the new 0% runs out, you'll be left with all of the new balance transfer and the remaining part of the old balance transfer.

But that also means that in September 2026, you'll have all of your new balance transfer now attracting interest, unless you transfer that to a new deal. Which of course your CC provider will hope that you don't or can't do, and pay it down while paying interest.

Hope that makes sense and writing all that out has made me realise that it might be deliberate that your lender has made you a new shorter offer, because of course they don't make any money while people have 0% deals, so they have to hope that people pay interest afterwards, but people are more savvy and either pay the debt off during the 0% period, or transfer it on to a new deal. So they have to trick them into not doing this. So I'd take their kind offer with open eyes and caution and perhaps look for another deal with a separate card instead.

Oh yes in which case it's pointless... I'm all digital so I'll find my online statement thanks for your help!

OP posts:

Original poster

mysparkleismissing · 01/09/2025 17:49

seems they were reading my mind just got a generic email with this info in it

additional balance transfer on interest free credit card....

OP posts: