Total charge for credit ??????

page_e

I have just been accepted for a Capital one premier card with 6.94% p.a interest for the life of balance transfers made in the first 6 months.
I need to transfer just over £3300 from my barclaycard.
I went for this one after being turned down from a few other card with 0% for balance transfers.
But when i received the paper work in the post this morning i notice in very small writing:

Total charge for credit:
At the time the agreement is made,is £92.24
Comprising interest in the sum of: £92.24

Is this what i will be charged to transfer the balance of my barclaycard over?

Thefunkygibbons

You need to look at your terms and conditions to see if there is a balance transfer fee

However, the number you have quoted is probably an indicative charge for credit, and may be based on an example amount

On £3300 balance you would be paying just over £200 in interest per year

CIMA_LOVER

page_e wrote:

I have just been accepted for a Capital one premier card with 6.94% p.a interest for the life of balance transfers made in the first 6 months.
I need to transfer just over £3300 from my barclaycard.
I went for this one after being turned down from a few other card with 0% for balance transfers.
But when i received the paper work in the post this morning i notice in very small writing:

Total charge for credit:
At the time the agreement is made,is £92.24
Comprising interest in the sum of: £92.24

Is this what i will be charged to transfer the balance of my barclaycard over?

They did this for me when i got my HBSC Credit card. I think it is based on your credit limit and what is will cost to spend on credit for exactly 1 year. So if you know your APR or sumthing, maybe your could work out your credit limit????????????

If it helps my credit limit was £1750, 6 months free (Bt and purchases) no fee and a APR of 21.3%, they total charge of credit for was £174 i think! hope this is helpful!

YorkshireBoy

page_e wrote:

But when i received the paper work in the post this morning i notice in very small writing:

Total charge for credit:
At the time the agreement is made,is £92.24
Comprising interest in the sum of: £92.24

Is this what i will be charged to transfer the balance of my barclaycard over?

See section 11 of your T&C's...

"In calculating the APR and Total Charge for Credit we are required by law to assume that: the credit limit will be £1,500 unless we know the credit limit when this agreement is made, in which case we will use that credit limit; the credit is provided for a period of one year beginning with the date of the agreement; the rate of interest payable in relation to the whole of the credit under this agreement is that applying to purchases; and that the credit is repaid in twelve equal monthly instalments, beginning one month after the date of this agreement."

If they had given you a £1,500 limit, the 'total charge for credit' would have been £138.36

By my (possibly dodgy) mathematics, it looks like they've only given you a limit of £1,200 to £1,300 so not enough for your required balance transfer.

YorkshireBoy

YorkshireBoy wrote:

By my (possibly dodgy) mathematics, it looks like they've only given you a limit of £1,200 to £1,300 so not enough for your required balance transfer.

My calculations were dodgy. I've re-done the sums and Cap One are using an equivalent APR of around 9.22% (as they use the purchases APR which is 0% for the first 6 months).

Using this figure, I've calculated that they've given you a credit limit of £1,000 - well below the £3,300 required.

page_e

Thanks everyone

I don't think i'm going to get this card £1,000 credit limit is no use to me.
I've just phoned barclaycard and got them to drop my APR from 17.9% to 12.9% so that's a start.
I've also applied for a Lloyds TSB card, don't know if they'll let me have one but it would be the perfect card for my needs.

grumbler

page_e wrote:

..I don't think i'm going to get this card £1,000 credit limit is no use to me....

Special Briefing: Didn’t get the credit limit you want – DON’T ‘screw them!’

page_e

grumbler wrote:

Special Briefing: Didn’t get the credit limit you want – DON’T ‘screw them!’

Thanks, i hadn't spotted this special briefing it's helped alot.

gkf

The figure quoted is used for comparison purposes between lenders. It assumes a set amount borrowed (can't remember if it was £1500 or not) and paid back in equal monthly payments over a 12 month period. The total charge for credit enables you to see supposedly at a glance who would cost you the most. Although this figure has now to be quoted every time, if you were on a 0% you wouldn't pay interest, but they still have to show an example at their typical interest rate.

YorkshireBoy

gkf wrote:

...can't remember if it was £1500 or not...

It is £1,500. See my direct quote from the OP's T&C's in post #4 above.

gkf wrote:

...they still have to show an example at their typical interest rate.

To clarify, this is their purchase interest rate.