Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Bluenose5
    • By Bluenose5 14th Sep 17, 12:16 PM
    • 2Posts
    • 0Thanks
    Bluenose5
    Balance transfer question
    • #1
    • 14th Sep 17, 12:16 PM
    Balance transfer question 14th Sep 17 at 12:16 PM
    I am new to the forum and have a question regarding new credit cards and balance transfers. I have 2 credit cards but very rarely use them, owing nothing on either of them. I need to pay a large bill at the end of September, and whilst I have got most of the money, I will have to pay around £1,200 on one of the credit cards. I will only be able to pay off around £700 on the next payment, with the balance on my 2nd payment around November. So my question is would it be cheaper to apply for and get a new credit card with 0% balance transfer, and transfer the outstanding balance from my old card over to it, or just stick as I am and pay interest on my present card for a month?
Page 1
    • MallyGirl
    • By MallyGirl 14th Sep 17, 12:32 PM
    • 2,019 Posts
    • 6,837 Thanks
    MallyGirl
    • #2
    • 14th Sep 17, 12:32 PM
    • #2
    • 14th Sep 17, 12:32 PM
    if you can get a zero fee BT at 0% it will be cheaper.
    • JamesZxr
    • By JamesZxr 14th Sep 17, 2:10 PM
    • 15 Posts
    • 8 Thanks
    JamesZxr
    • #3
    • 14th Sep 17, 2:10 PM
    • #3
    • 14th Sep 17, 2:10 PM
    If eligible MBNA are currently offering one with 30 months 0% with a 0.64% fee but £20 cashback if you transfer over £1000 so that may be the best option for you. If my maths is correct that would effectively cancel out the fee if you transferred £1200 and knock a further £12.32 off the balance.
    Last edited by JamesZxr; 14-09-2017 at 2:12 PM.
    • Nebulous2
    • By Nebulous2 14th Sep 17, 2:47 PM
    • 1,627 Posts
    • 988 Thanks
    Nebulous2
    • #4
    • 14th Sep 17, 2:47 PM
    • #4
    • 14th Sep 17, 2:47 PM
    What is the interest rate on your current credit cards? For one month it may not amount to much.

    If you could use a card anyway then go for it, but I'm not sure I would for a short-term bridge.
    • dbmabz
    • By dbmabz 15th Sep 17, 11:45 AM
    • 39 Posts
    • 462 Thanks
    dbmabz
    • #5
    • 15th Sep 17, 11:45 AM
    • #5
    • 15th Sep 17, 11:45 AM
    You will pay interest on the full amount on that you pay on the credit card until this amount and the interest charged, typically at 18..9% depending on your credit card rate, is paid off in full.

    If you can pay it off in two months, the interest charges assuming £1200 and 18.9% will be around £30.

    If you want a bit more flexibility to pay it off over a longer period, then the Tesco No Fee card will give you 0% for 12 months on balance transfer with no balance transfer fee
    • Nebulous2
    • By Nebulous2 15th Sep 17, 1:28 PM
    • 1,627 Posts
    • 988 Thanks
    Nebulous2
    • #6
    • 15th Sep 17, 1:28 PM
    • #6
    • 15th Sep 17, 1:28 PM
    You will pay interest on the full amount on that you pay on the credit card until this amount and the interest charged, typically at 18..9% depending on your credit card rate, is paid off in full.

    If you can pay it off in two months, the interest charges assuming £1200 and 18.9% will be around £30.

    If you want a bit more flexibility to pay it off over a longer period, then the Tesco No Fee card will give you 0% for 12 months on balance transfer with no balance transfer fee
    Originally posted by dbmabz
    You may just have worded this badly, but he won't pay interest on the full amount for the full two months.

    Any payment made will stop the.interest on that amount from the date they receive the payment.

    A final payment will have 'trailing interest' from the statement date until.the date the payment is received showing in the following statement.
    • dbmabz
    • By dbmabz 15th Sep 17, 3:38 PM
    • 39 Posts
    • 462 Thanks
    dbmabz
    • #7
    • 15th Sep 17, 3:38 PM
    • #7
    • 15th Sep 17, 3:38 PM
    Yes your right, I did word it badly, he/she will only pay interest on the amount outstanding

    So interest on £1200 for a full month and then on £500 for another month assuming a £700 payment after 1 month
    • Bluenose5
    • By Bluenose5 21st Sep 17, 11:39 AM
    • 2 Posts
    • 0 Thanks
    Bluenose5
    • #8
    • 21st Sep 17, 11:39 AM
    • #8
    • 21st Sep 17, 11:39 AM
    Thank you all for the advice over which option to take. I am going to check the interest rate on the 2 cards I currently have, as if that isn't too bad then it will negate the need for another application process. Depending on what the rates are I can then look into the other cards you have all suggested, which all seem relevant to my situation, so will need some thinking about!
    Thank you all once again
    • Superscrooge
    • By Superscrooge 21st Sep 17, 12:33 PM
    • 906 Posts
    • 627 Thanks
    Superscrooge
    • #9
    • 21st Sep 17, 12:33 PM
    • #9
    • 21st Sep 17, 12:33 PM
    When I tried to close my credit card I was immediately offered 0% purchases for 12 months to persuade me to keep using it.

    You have nothing to lose by asking if they will offer you something similar?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,203Posts Today

7,407Users online

Martin's Twitter