[michaelstokes93]

Hello,

How does making a payment work on a credit card that has purchases included in a promotional interest free period but then balance transfer which does not have a promotional interest free period?

It was only after the balance transfer had been made that it occurred to me that the interest free promotional period might not apply like it does with purchases and so I am keen to avoid paying interest.
Back in September 2022 I started a Tesco Bank Purchase Card for 19 months interest free on purchases. I'm unsure whether this includes balance transfers in this interest free period but I expected it doesn't, from a screenshot I captured at the time it shows interest free on balance transfers made in the first three months.



The most recent transaction done on the card was the balance transfer of about £350. All other transactions have been purchases which fall under the promotional interest free period for the remaining months.

I assume that I'll then pay interest on and only on that amount of the balance transfer and that if I were to pay that off (£350), that would apply to the balance transfer amount and therefore I wouldn't be charged interest.

I would hope that payments made would apply to transaction types of which are non-promotional rather than promotional first so if I paid the balance transfer amount to avoid interest and then on top of that pay the balance within the purchases interest free promotional period.

Balance Transfer: 3rd November 2023
Minimum payment due: 21st November 2023
Purchases interest free promotion ends: 24th April 2024

Thanks for your help!

[ChristopherP]

@michaelstokes93 Hey there, thanks for getting in touch!

Payments are allocated to the highest interest balance first, so yes the payment will go towards the balance transfer first.

Your statements will outline exactly how much you need to pay to avoid paying interest on the transfer.