Barclaycard 2.9% life versus 0% six months

Margaret_Millne · 6 August 2004 at 4:05PM

Forgive me if I appear a bit thick here, but Barclaycard have just sent me some cheques to use before September to get 0% for six months with a 2% charge.

Now, I have only recently transferrred a sum at 2.9% for life, already paying a 2% charge for this.

My understanding is I would be crazy to take up this new offer. I am sure I will end up paying more in the end my doing so, even if I completely clear the card from other sources first.

Can any of you number crunchers out there clarify this?

Milarky · 6 August 2004 at 9:44PM

Paying 2% for six months is the same as paying 4% pa. But this assumes no reduction in the '0%' balance in the meantime. By rights, if you are 'mixing' balance transfers at different rates in this way, then the order of payments should go to the '0%' balance transfer element first. Assuming you attempted to repay this over the six months, therefore, you would only be getting '0%' for 3 months, which makes the 2% handling fee equivalent to 8% pa!

Any way you look at it, these figures don't add up!

As a side thought, you could ask Barclaycard to improve their offer. 2% for 12 months [4% pa] might be what you would be looking for? The 'LOB 12 month' rate is (if you think about it) 4.9% due to that 2% upfront fee. Thereafter it's genuinely 2.9%. But check what the order of payments will be - and be prepared to quote their T&Cs just in case!

[Hmmm... and Martin said this was nearly as good as the new customer '0%' offer! :-/]

Barclaycard 2.9% life versus 0% six months

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