Halifax payment allocation - CC

S

ssocks

Guest
Hi,

I currently have an AIB visa card but am thinking of switching over to Halifax CC and just have one question that someone here might be able to answer…. I noticed on the Halifax website one of the features of their card is:

“If you do not pay off your balance in full we allocate payments to balances with a 0% interest rate before balances with higher interest rates. See condition 2.4 of the terms and conditions for full details.”

I’m just wondering if anyone knows whether this is standard practice on an AIB visa card as well? Don’t want to switch if its going to end up costing me money in the long run!

Thanks
 
I’m just wondering if anyone knows whether this is standard practice on an AIB visa card as well? Don’t want to switch if its going to end up costing me money in the long run!
Click to expand...

I'm no expert, but it seems to be standard practice for all 0% deals. How can it cost you money? If Halifax give you 0% on transfer and 0% on purchases, for 6 months, surely you're quids in? Because all of your transactions are at 0% for the initial period. After that if you do not clear your purchases each month, they will pay off your 0% stuff first.

Slim
 
Well reason I was talking about it 'costing' me money was say for example I pay off the balance I transfer by the end of the 6 months, but then say I make the below purchases and don't pay them off that month:

3rd oct 200
6 oct 600
etc

and in Nov if i make a purcahse and make a payment the payment I make will just go to paying off the Nov purchase so the interest is still being charged on the oldest items. Perhaps I am taking this up wrong and maybe not explaining it very well, but what I was then wondering was if with AIB would a payment I make go to paying off my oldest purchases first.
 
I am not sure I understand you right. If you transfer 5,000 to Halifax at 0% for 6 months from 1st December, and then put purchases on your credit card for 6 months. I presume you must make the minimum payment each month. Then at the end of May 2008, the deal runs out. Anything left on your Halifax CC will then be charged at the normal rate. You will have no more 0% balance or purchases.

Am I not getting it?

Slim
 
Yes thats it.... but then say next year (when the 0% deal is long forgotten!), if i have made purchases and haven't paid them off in full, and have other purchases which are still under the 56 days interest free period, if I make a payment to my credit card this will be allocated against the items still in the 56 day credit period rather than against the older items which are clocking up higher interest.

Thats fine if thats the 'standard' for all credit cards but I think I read here a while ago that it varies from bank to bank so if on AIB the payments are allocated against the oldest purchases first then maybe in the long run that is better value.
 
Got me there, ssocks. I suspect you will be advised to check T&Cs.

Slim
 
Ok, thanks Slim. Just thought someone on here might know and save me ringing the callcentre for AIB and god knows how I will explain that to them :) Thanks anyway!
 
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