How will my payments be applied to my account?

In most cases, any payment you make is applied to the part of your balance charged at the highest interest rate first. This means your payments are allocated in a way that reduces the interest you pay, which helps keep your costs as low as possible.

For example, imagine you have a £30 purchase with interest at your standard purchase rate and a plan with a balance of £150 at 0%. If you make a payment of £100, we'd use £30 to repay your purchase with interest, because it's costing you more. Then the remaining £70 would go towards your 0% interest balance, reducing it to £80.

When this changes
There are two exceptions to this:

1. Instalment plans If you have an instalment plan, payments are applied in the following order:
• Your minimum payment is paid first
• Then, that month's instalment is paid next
• Then, balances charged at the highest interest rate first
This makes sure your instalment plan stays active.

2. BNPL plans set up before updating to Argos Pay only This only applies to accounts that were updated from Argos Card and have a deferred interest BNPL plan.
If you have one of these BNPL plans, deferred interest will apply on any remaining BNPL balance once the plan expires. Please be assured that the way we apply your payments helps you avoid deferred interest.
We apply your payments in the following order:
• Your minimum payment due
• Any instalment plan payment due, to make sure that plan remains active
• Any deferred interest BNPL plan that is due to end the following month
• Then, to balances charged at the highest interest rate first

For more information about deferred interest BNPLs, please refer to 'Buy Now Pay Later (BNPL) with deferred interest – for customers who've updated from the Argos Card'.