Small purchases with BT card

Sad_Dad · 17 May 2017 at 3:57PM

After reading this thread I‘m slightly confused, can anyone please help me as I’m worried I might be charged interest on one of my cards.

I’ve got a Lloyds 32 month interest free balance transfer card that also has 12 months interest free on purchases.

I did a 4k balance transfer to it and I also spent £400 on the card when I first got it. This £400 has now been paid off with the first 10 monthly minimum payments (the more expensive purchases debt is paid off first).

Will I be charged interest once I have had the card for 12 months?

Jasonwil · 20 May 2017 at 7:20PM

if you have paid your amount in first 10th month..this will charged interest because you have 12 month interest free purchase on your card

molerat · 20 May 2017 at 7:54PM

Sad_Dad wrote: »

After reading this thread I‘m slightly confused, can anyone please help me as I’m worried I might be charged interest on one of my cards.

I’ve got a Lloyds 32 month interest free balance transfer card that also has 12 months interest free on purchases.

I did a 4k balance transfer to it and I also spent £400 on the card when I first got it. This £400 has now been paid off with the first 10 monthly minimum payments (the more expensive purchases debt is paid off first).

Will I be charged interest once I have had the card for 12 months?

Both were at the same 0% promo rate so you need to read the allocation of payments in your T&Cs to see what is paid off first.

reading the T&Cs

If there is more than one type of balance at the same interest rate, they are paid off in the following order: cash transactions, purchases, balance transfers and money transfers, and then default charges (plus any interest or charges incurred as a result of those balances). For each type of balance, your payments will pay off the oldest balance (and related fees, charges or insurance) first.

the purchase was in fact paid off first so there will be no interest to pay at the end.

Sad_Dad · 22 May 2017 at 9:04PM

molerat wrote: »

Both were at the same 0% promo rate so you need to read the allocation of payments in your T&Cs to see what is paid off first.

reading the T&Cs

the purchase was in fact paid off first so there will be no interest to pay at the end.

Guess I'm okay then

thanks for your reply molerat.

Chrysalis · 31 May 2017 at 12:04AM

confirmed its a pittance, this interest is for 4 uber transactions totalling about £19

22 May Interest On Your Standard Balance Non-pending transaction Credit £0.17
22 May Interest On Your Balance Transfer Non-pending transaction Credit £0.00

zsolmanz · 14 June 2017 at 4:59PM

I've wondered the same myself.

Is it not a useful feature of BT payments that they decrease your utilisation over time (and hence increase your credit score) though?
Or does having extra card to maintain the same level of debt cause more difficulty in refinancing at the end of a BT offer than high utilisation?

Dribiddi · 15 June 2017 at 7:29AM

Isn't it now the case with credit cards that payments made go towards clearing the highest interest part of the amount owed irrespective of for how long this may have been owed? So on a BT card at 0% interest, if you spent £100 at ASDA 22.9% APR your payments would pay this off before going back to paying down the balance transferred.

[Deleted User] · 15 June 2017 at 7:41AM

That's correct. But you still need to clear the entire balance in full to have the interest waived.

Small purchases with BT card

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