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Card % rates - a simple question please

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Im reading about the B'card simplicity card offering 6.9% (balance over £5000) for life of debt.

We have four current cards totalling £11,500.

Im just a little confused about the rates thing.
For example,are we talking about the APR rate?
one card has an APR of 16.9% - does this mean if I could transfer all the £11,500 debt from other cards instead of paying 16.9 or whatever the other individual card rates are, we be paying just 6.9% on the total amount?

So sorry for ignorance.

Thanks for help :confused:

Comments

  • Robert_Sterling_3
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    It looks as if you could have 6.9% on £5000 for the life of balance.
    You would probably have a balance transfer fee to.

    Do not spend any money on the card.

    Any money you spend will be at the High APR rate and the low rate 6.9% money will usually be paid off first.
    ...............................I have put my clock back....... Kcolc ym
  • dig4victory
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    I see, so just to clarify Robert, as a total of £11,500 which may add up to say, 50 - 60% if all the separate apr's are added up, we'd be paying 6.9% on the total of £11,500 plus probable transfer fees?

    We would not be using the card ever - probably cut it up as soon as it arrives. :D
  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
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    A life-of-balance card charges a fixed interest rate for the life of the balance(s) transferred.

    With Barclaycard Simplicity, your standard APR (currently 6.8% typical) is subject to credit status and variable. This means B'card reserves the right to charge the rate it deems appropriate (6.8% APR being the typical rate new customers are charged at the mo) and may raise your standard rate - whatever that happens to be - at any time.

    Please note: B'card limits the balance transfer(s) to a maximum of £5000.
    People who don't know their rights, don't actually have those rights.
  • dig4victory
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    Ah yes, I see now, Moggles - I've just had a look at the terms etc.

    Anyone any suggestions if there is a card that takes a larger balance transfer at a good rate? :D
  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
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    Which card is best depends, to some extent, on which cards you hold at the mo or have held recently.
    People who don't know their rights, don't actually have those rights.
  • dig4victory
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    John lewis mastercard
    M&s mastercard
    Virgin
    Mint
  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
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    To maximise the 0% period on BTs, 14 months is currently available to new customers from Tesco. A 2.9% BT fee applies.

    http://www.tescofinance.com/personal/finance/finance/creditcards/bonuscc/index.jsp

    Alternatively, you'd get 13 months with Halifax. A 3% BT fee applies.

    http://www.halifax.co.uk/creditcards/pluscard136.asp

    IME, and that of other forum users, the Hally tends to hand out more generous credit limits than Tesco.;)
    People who don't know their rights, don't actually have those rights.
  • anotherpaul_2
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    I see, so just to clarify Robert, as a total of £11,500 which may add up to say, 50 - 60% if all the separate apr's are added up, we'd be paying 6.9% on the total of £11,500 plus probable transfer fees?

    We would not be using the card ever - probably cut it up as soon as it arrives. :D

    Err, no. You don't add the APR values to come you with a total. Boardly speaking you average them (it's a bit more complicated depending on how much you owe on each card).

    As a simple example, if you owe £5000, £4000 and £2500 on three cards, all at 16.9%APR, means you have £11500 at 16.9%APR (not 16.9 x 3), so over a year you'd pay 16.9% of £11500 in interest, which is about £1950.

    If you transfer it all to a 6.9% account, you'd only pay about £800 of interest per year. I've ignored the transfer fee - which would I guess be 3% of the balance which is approximately £350.

    I've ignored repayments in this calcuation for simplicity. But, if you make the transfer, and continue paying the same amount a month as you currently pay, you'll pay the debt off more quickly and not give the bank so much interest.
  • dig4victory
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    I see. I'm sorry to be showing my general ignorance (anyone watch QI?? :D) - I'm ashamed to be so financially unaware - I've always been an english student not a maths one!

    Thank you for your help.

    I just need to find a card or two (or other methods) to apply to for best deals.

    I'm having a bad day - I just had a call from JL saying basically that what I wrote down from the customer advisor a couple of weeks ago was wrong and that basically now I have asked and agreed to reduced monthly payments they are revoking the card full stop. I hate it when you get the wrong info - and they make it all sound your fault - jargon from advisors is not good!

    I'm so confused by the whole thing I feel almost paralysed....
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