Interest on 0% Balance Transfers

glenbois

I have a couple of questions as to when and how interest is calculated on a balance transfer - let me explain the circumstances and then the questions afterwards:

I paid for a holiday (£2,000) on my Egg Card and then did an immediate balance transfer for the amount over to Asda who were offering 0% until March 2009.

My intention is to pay all or as much of the credit card as possible before March 2009.

If I manage to pay off £1900 by March 2009 - how is my interest calculated on my Asda account?

a) Is it calculated on the £100 that I have left?
or
b) the full £2000 and is it backdated to July (when I did the balance transfer?)
or
c) some other sneaky way that I haven't thought about?

I intend to spend another £750 on my Egg Card but this will be on the normal purchase rate now as I said I expect to pay off my Asda (0% Balance transfer) by March 2009, however would it be better to pay off the new £750 first? (I suspect the answer is dependent on whether a) b) or c) (above) is correct).

Thanks

dhassen

in short, a).... but you'd have to check with your asda card the exact date when the interest is applied.... is it from 01/03 or is it from the march statement date..

speedbird1973

Interest will only be charged on the balance from the date your interest free finishes. So if you have 100 outstanding then you pay interest on the £100.

It's not like interest free finance where you pay interest from day, but have it waived if you pay before your expiry

glenbois

Thank you for your fast responses.

clio

btw make sure if you do another BT to asda it,s done in the 1st 6 weeks of account opening or you'll find it,s not 9 months anymore but 6 moinths..