Payment Allocation

Payment Allocation

We're changing your credit card to offer even better value

What’s changing?
Any payments that you make from 1st September 2010 will go towards paying off the balance with the highest interest rate on your credit card first.

How does that work?

  • Let’s suppose you’ve made a balance transfer at a rate of 0% and
  • You’ve made purchases with your card at a rate of 16.9%
  • When we receive your payments they will pay off your purchases at 16.9% before your balance transfer at the lower rate of 0%

You can now use your credit card for everything – balance transfers and everyday spending, without losing the benefit of any promotional rate you may have.

What do I need to do to take advantage of this benefit?
Absolutely nothing. We will do it automatically!

It really is the only credit card you need in your wallet.

Frequently asked questions

Payment allocation flow chart

We receive your payment

Your statement balance and any recent transactions are paid in order of interest rate, highest to lowest

We continue to pay balances in order of highest to lowest interest rate until the whole payment has been allocated or the balance paid in full.

Your Bank of America credit card is issued by MBNA Europe Bank Limited, Registered Office: Stansfield House, Chester Business Park, Chester CH4 9QQ. MBNA is a Bank of America company. Registered in England number 2783251. Credit is available, subject to status, only to UK residents aged 18 or over. You cannot transfer balances from another account issued by MBNA. We will monitor or record some phone calls. MBNA’s consumer credit activities are licensed by the Office of Fair Trading (OFT) and our general insurance activities are authorised and regulated by the Financial Services Authority (FSA).

©2010 MBNA Europe Bank Limited. All rights reserved.