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  • FIRST POST
    • ST-User
    • By ST-User 12th May 17, 8:49 PM
    • 37Posts
    • 7Thanks
    ST-User
    Small purchases with BT card
    • #1
    • 12th May 17, 8:49 PM
    Small purchases with BT card 12th May 17 at 8:49 PM
    Hi all,
    Is it a good idea to make a less than the minimum payment purchase with a BT card every month?
    So if I pay the minimum payment, it will pay off rather the purchase and the balance will remain nearly intact.
    Am I right that I still don't pay interest with this method?
Page 1
    • Ben8282
    • By Ben8282 13th May 17, 2:24 AM
    • 1,989 Posts
    • 863 Thanks
    Ben8282
    • #2
    • 13th May 17, 2:24 AM
    • #2
    • 13th May 17, 2:24 AM
    You will not pay interest on the purchase if the card has an ongoing 0% offer on purchases. If it does not, you will pay interest on the purchase,
    • Superscrooge
    • By Superscrooge 13th May 17, 7:06 AM
    • 848 Posts
    • 589 Thanks
    Superscrooge
    • #3
    • 13th May 17, 7:06 AM
    • #3
    • 13th May 17, 7:06 AM
    Very few cards (if any) offer 0% purchases AND 0% BT's for the same length of time.

    The advice is usually don't spend on 0% BT cards. Yes, your balance will gradually decline as you make the minimum payments but you won't be hit with unexpected interest payments.

    My 0% BT cards live in a drawer and have never left the house. I have separate 0% purchases cards
    • ST-User
    • By ST-User 13th May 17, 2:36 PM
    • 37 Posts
    • 7 Thanks
    ST-User
    • #4
    • 13th May 17, 2:36 PM
    • #4
    • 13th May 17, 2:36 PM
    Thanks for the answers. This card has got only a BT promotion, but I thought if the minimum payment can cover the monthly purchases, my payment will be used to clear the purchases balance first and I don't pay interest on these purchases either. Or do I?
    • YorkshireBoy
    • By YorkshireBoy 13th May 17, 2:46 PM
    • 29,326 Posts
    • 17,099 Thanks
    YorkshireBoy
    • #5
    • 13th May 17, 2:46 PM
    • #5
    • 13th May 17, 2:46 PM
    Thanks for the answers. This card has got only a BT promotion, but I thought if the minimum payment can cover the monthly purchases, my payment will be used to clear the purchases balance first and I don't pay interest on these purchases either. Or do I?
    Originally posted by ST-User
    You've already had the answer to that question in the very first reply. Did you read it? Perhaps you meant to ask 'why' this was the case? Well, it's because you only get an interest free period on purchases if you've cleared your last two statement balances in full...and you haven't. It's in your T&Cs. If you're struggling to find it perhaps if you say which card it is someone will tell you which specific condition relates.
    • ST-User
    • By ST-User 13th May 17, 6:10 PM
    • 37 Posts
    • 7 Thanks
    ST-User
    • #6
    • 13th May 17, 6:10 PM
    • #6
    • 13th May 17, 6:10 PM
    you only get an interest free period on purchases if you've cleared your last two statement balances in full...and you haven't.
    Originally posted by YorkshireBoy
    This is the answer what I was looking for, thank you.
    • redux
    • By redux 13th May 17, 7:33 PM
    • 16,955 Posts
    • 21,382 Thanks
    redux
    • #7
    • 13th May 17, 7:33 PM
    • #7
    • 13th May 17, 7:33 PM
    I actually think this could be a reasonable idea, but I don't see a lot of people on here talking about it.

    If you make a modest purchase of slight!y above the minimum payment, then clear it, the benefit of the full balance transfer amount will carry through to the end, rather than being maybe quarter of half paid off by then.

    It's worth trying to time things differently. Instead of the ideal being buy just after one statement, then pay up by the due date on the next, instead in this regime the ideal would be buy just before a statement date and pay it off just after the same statement. But maybe don't worry about it too much, given than the interest on £25 is probably only just over a penny a day.
    • Superscrooge
    • By Superscrooge 14th May 17, 12:23 PM
    • 848 Posts
    • 589 Thanks
    Superscrooge
    • #8
    • 14th May 17, 12:23 PM
    • #8
    • 14th May 17, 12:23 PM
    I actually think this could be a reasonable idea, but I don't see a lot of people on here talking about it.

    If you make a modest purchase of slight!y above the minimum payment, then clear it, the benefit of the full balance transfer amount will carry through to the end, rather than being maybe quarter of half paid off by then.
    Originally posted by redux
    The reason people don't talk about it is that it wouldn't work! You pay interest on the purchase unless there was also a 0% promotion on purchases, or you cleared ALL the balance in full by the payment due date

    Below is from Halifax T&C's but other CC's have similar wording

    Purchases: We do not charge interest on purchases made during your latest statement period if you pay off your full balance (including any balance transfers and money transfers) by the payment due date and you also paid your previous month's balance in full by the due date.
    • redux
    • By redux 14th May 17, 11:00 PM
    • 16,955 Posts
    • 21,382 Thanks
    redux
    • #9
    • 14th May 17, 11:00 PM
    • #9
    • 14th May 17, 11:00 PM
    The reason people don't talk about it is that it wouldn't work! You pay interest on the purchase unless there was also a 0% promotion on purchases, or you cleared ALL the balance in full by the payment due date

    Below is from Halifax T&C's but other CC's have similar wording

    Purchases: We do not charge interest on purchases made during your latest statement period if you pay off your full balance (including any balance transfers and money transfers) by the payment due date and you also paid your previous month's balance in full by the due date.
    Originally posted by Superscrooge
    What makes you say it doesn't work?

    I wasn't suggesting the total avoidance of interest, but a way to continue with the full amount of the balance transfer to the end of the offer, for a cost of a few pence a month.
    • Chrysalis
    • By Chrysalis 15th May 17, 10:17 AM
    • 1,976 Posts
    • 916 Thanks
    Chrysalis
    I think I fell into the same mistake but now trying to work out what interest I will be paying.

    So I have my barclaycard platinum which is a BT card. (although keep getting new BT and MT offers).

    I recently started using it for uber due to a barclaycard promotion, these uber transactions are small and are easily covered by my existing payments.

    I now have realised I will be paying interest but since I am clearing the expenditure in one month am I right the interest will only be paid for that one month and as such be a pittance? e.g. a £5 transaction on uber, one months worth of interest on that £5 at say 8% apr be about 3 pence?.
    • Superscrooge
    • By Superscrooge 15th May 17, 1:25 PM
    • 848 Posts
    • 589 Thanks
    Superscrooge
    What makes you say it doesn't work?

    I wasn't suggesting the total avoidance of interest, but a way to continue with the full amount of the balance transfer to the end of the offer, for a cost of a few pence a month.
    Originally posted by redux
    redux - Valid point.

    I didn't study your post carefully enough and thought you were assuming the purchase would be interest free, whereas we actually both agree that there would be some interest to pay.

    Generally I believe it is good advice not to spend on BT cards as many people get caught out spending larger amounts on BT cards and then assuming that if they pay off just the purchase amount by the due date there will be no interest to pay, which wouldn't be the case.

    But I do accept your argument that the interest amount would be small and that the method you suggest might be appropriate to some people,
    • Sad_Dad
    • By Sad_Dad 17th May 17, 3:57 PM
    • 769 Posts
    • 11,589 Thanks
    Sad_Dad
    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?
    Last edited by Sad_Dad; 17-05-2017 at 4:02 PM.
    • Jasonwil
    • By Jasonwil 20th May 17, 7:20 PM
    • 1 Posts
    • 0 Thanks
    Jasonwil
    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
    E - Credit Loan
    • molerat
    • By molerat 20th May 17, 7:54 PM
    • 16,764 Posts
    • 10,985 Thanks
    molerat
    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?
    Originally posted by Sad_Dad
    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.
    Last edited by molerat; 20-05-2017 at 10:14 PM.
    www.helpforheroes.org.uk/donations.html
    • Sad_Dad
    • By Sad_Dad 22nd May 17, 9:04 PM
    • 769 Posts
    • 11,589 Thanks
    Sad_Dad
    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.
    Originally posted by molerat
    Guess I'm okay then thanks for your reply molerat.
    • Chrysalis
    • By Chrysalis 31st May 17, 12:04 AM
    • 1,976 Posts
    • 916 Thanks
    Chrysalis
    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
    • By zsolmanz 14th Jun 17, 4:59 PM
    • 11 Posts
    • 3 Thanks
    zsolmanz
    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
    • By Dribiddi 15th Jun 17, 7:29 AM
    • 50 Posts
    • 20 Thanks
    Dribiddi
    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.
    • zx81
    • By zx81 15th Jun 17, 7:41 AM
    • 12,678 Posts
    • 12,936 Thanks
    zx81
    That's correct. But you still need to clear the entire balance in full to have the interest waived.
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