Order of Payments
You could save up to £150**
OOPs - What is it?
Order of Payments (or OOPs) is the sequence that your credit card bill is paid. At Nationwide we always make sure we pay off your most expensive debt first. Like this:
If you are working hard to pay off your debts, it is always a good idea to tackle your most expensive debts first, which is what we will do at Nationwide.
Many other organisations operate a negative order of payments. Let's run through an example.
1. You open a credit card that offers a 0% on balance transfers deal for 10 months.
2. You transfer a balance over and withdraw a little cash because you know you can pay that off when your statement comes through.
3. You receive your statement at the end of the month and it shows your balance transfer and your cash withdrawal.
4. You pay off the cash withdrawal.
5. You don't use your credit card again and receive a statement the following month.
6. The cash withdrawal is still on there being charged interest but part of the balance transfer has been paid off.
This can be illustrated with the following diagram
There are always variations with regard to fees and charges but in essence, many organisations will pay off the balance that is cheapest for you, maintaining the balance that is costing you the most.
OOPs - Nationwide
We are campaigning to bring this to the attention of all credit card users in the UK as we believe that other provider's policies are unfair to customers.
Along with a fair order of payments, a Nationwide credit card has the following great benefits:
- 0% for 10 months on balance transfers*
- 0% for 3 months on all new purchases*
- commission free purchases abroad
- FREE purchase cover for loss, theft or damage to most purchases over £50
- FREE 12 month extended warranty on selected goods
- peace of mind for all cardholders with Nationwide Fraud Watch
*Introductory rates apply from the date the account is opened. Balance transfers at 0% must be made within 3 months from account opening and are subject to a fee of 2.5% (minimum £2.50).
**With our positive order of payments your most expensive borrowing is paid off first, meaning you could save £150 in the first year.
Saving is based on new Gold Card holder over 12 months, transferring £1,800 in month 1, making £330 of new purchases each month, withdrawing £95 in months 1 and 7, and making monthly repayments of £385 (with our positive order of payments paying off the most expensive part of the borrowing first compared to a negative order of payments paying off the least expensive part of the borrowing first). Breakdown of usage based on average Nationwide Gold Card active customer usage June 2007 - May 2008. The average £1800 transfer is based on customers using this service.