Credit Card Questions & Answers

What is the allocation of payments clause?
The allocation of payments is a listed clause in the terms and conditions of every credit card. This clause basically states the order in which payments you make to your account will be applied.

More often than not, balances on your account with 0% or lower rates of interest will be repaid before those accruing higher rates of interest. This most often becomes a problem when you have a large cheap balance on your account - but you've also added a higher rate transaction to the same account, such as a purchase or a cash withdrawal.

Why are there so few 0% balance transfer and purchase credit cards?
The reason there are so few 0% balance transfer and purchase credit cards – is not because there is a lack of these offers, far from it, most 0% balance transfer credit cards now include a 3-month 0% purchase deal.

However, equal length 0% balance transfer and purchase credit card deals – that are suitable to both transfer to and spend on have become the rarity – and the main reason simply comes down to credit card company profiteering.