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  • FIRST POST
    • Bluenose5
    • By Bluenose5 14th Sep 17, 12:16 PM
    • 1Posts
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    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
    • 1,894 Posts
    • 6,315 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
    • 12 Posts
    • 1 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
    • 1,565 Posts
    • 951 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
    • 460 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
    • 1,565 Posts
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    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
    • 460 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
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