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  • FIRST POST
    • cdturri
    • By cdturri 6th Sep 17, 10:06 PM
    • 3Posts
    • 0Thanks
    cdturri
    Why is interest charged from purchase day when I have a promotional balance
    • #1
    • 6th Sep 17, 10:06 PM
    Why is interest charged from purchase day when I have a promotional balance 6th Sep 17 at 10:06 PM
    I have a Barclaycard and I have taken a deal to transfer some cash to my bank account at 0%. This is all good and fine but when I read the T&Cs I found a clause that said that once I had a balance on a promotional rate any additional purchases that I make will have interest charged from the purchase date even if I paid those additional purchases in full when the statement was due. This is confirmed by this help page:

    help.barclaycard.co.uk/brochure/spending_transactions/promotional-standard-rate

    I did a test with a small purchase and I was indeed charged a small interest on the purchase even though I paid it in full when the statement was due.

    Can someone please explain to me why this stupid rule exists? It clearly dis-encourages me to use the card since once I have a balance with a promotional rate I can't avoid to pay interest in new purchases if I use the card for anything else. Is this a "small print" scam or is it that Barclaycard can't have their systems distinguish from the promotional rate balance and the standard rate balance?

    Thanks!
Page 1
    • zx81
    • By zx81 6th Sep 17, 10:09 PM
    • 14,108 Posts
    • 14,792 Thanks
    zx81
    • #2
    • 6th Sep 17, 10:09 PM
    • #2
    • 6th Sep 17, 10:09 PM
    It's not a scam. It's common on all credit cards with the exception of Nationwide, I believe.

    Keep a separate card for purchases.
    • cdturri
    • By cdturri 6th Sep 17, 10:15 PM
    • 3 Posts
    • 0 Thanks
    cdturri
    • #3
    • 6th Sep 17, 10:15 PM
    • #3
    • 6th Sep 17, 10:15 PM
    OK but I don't get it why this rule exists. Sure the bank is more than happy for me to spend on the credit card up to my credit limit as they get a % of my purchases?
    • zx81
    • By zx81 6th Sep 17, 10:17 PM
    • 14,108 Posts
    • 14,792 Thanks
    zx81
    • #4
    • 6th Sep 17, 10:17 PM
    • #4
    • 6th Sep 17, 10:17 PM
    They would rather have the interest. Many customers continue to mix the two transaction types on the same card.
    • Nebulous2
    • By Nebulous2 7th Sep 17, 8:08 AM
    • 1,627 Posts
    • 988 Thanks
    Nebulous2
    • #5
    • 7th Sep 17, 8:08 AM
    • #5
    • 7th Sep 17, 8:08 AM
    You only qualify for an interest free period if you clear your balance in full. With a promotion sitting there you don't do that.

    General advice for most people is don't mix transfers and purchases. They're giving you a substantial benefit with a 0% period. You cannot be surprised that they would like something in return?

    The trick is to know the rules and not let them!
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