Capital One - 15 months interest free

Jarlawuk

So long as you spend £100 before a certain time you get 15months interest fee - shame there is a 2% fee, but if its capped at £50 then its well worth checking out.

HGLTsuperstar

Not capped, and discussed elsewhere on this forum and stoozing.com

Milarky

I did some sums and eventually worked out that the effective interest rate with a 2% (uncapped) fee and paying back £100 immediately to qualify is around 2%pa (1.95% actually). So it can be roughly equated to a long term '1.9%' offer in effect. That's not really such a coincidence when you consider that the original amount is gradually reduced over the term and that the term itself is a bit over a year.

The stoozing profit (based on 4.5% AER gross, so multiply by 80% as appropriate) would be around £26 per £1000 borrowed:


...................On Card... In Savings... Profit/loss
01/05/06.... -£1,020.00... £1,000.00 ....-£20.00
01/06/06...... -£989.40 ......£973.08 ....-£16.33
01/07/06...... -£959.72 ......£946.97 ....-£12.75
01/08/06...... -£930.93 ......£921.66 .....-£9.27
01/09/06...... -£903.00 ......£897.12 .....-£5.88
01/10/06...... -£875.91 ......£873.32 .....-£2.58
01/11/06...... -£849.63 ......£850.26 .......£0.62
01/12/06...... -£824.14 ......£827.89 .......£3.75
01/01/07...... -£799.42...... £806.21 .......£6.79
01/02/07...... -£775.44...... £785.19........£9.75
01/03/07...... -£752.17 ......£764.81 ......£12.64
01/04/07...... -£729.61 ......£745.06 ......£15.45
01/05/07...... -£707.72 ......£725.91 ......£18.19
01/06/07...... -£686.49 ......£707.34 ......£20.86
01/07/07...... -£665.89 ......£689.35 ......£23.46
01/08/07...... -£645.92 ......£671.91 ......£25.99


But remember to spend and repay £100 before any transfers since purchases are not interest free sat on the account - only for the first 56 days if repaid in FULL
(HTH)

HLK

I have 2 applications for Cap 1 card, a leaflet that dropped out of a Sunday paper (June 2007) and a direct mailing (July 2007) ... 'You've been pre-selected..'. Neither of them mention the £100 purchase requirement that I can see in the very small 'small print'. Not usre what would be better though.. go for a 6 month card with a max charge followed by another one, or just bite the bullet with the Cap 1. I'm looking to BT arount £6500 ? My credit rating is very good. Any thoughts?

SavvyGirlie

OK. I too have the Capital One leaflet from the Mail on Sunday. No mention of £100 minimum spend, 2% fee, which in my case I'll be transferring £3918.74. Can't decide whether to do this one or the 9 months 0% no fee. What do people think? I can't believe this offer hasn't been in Martins Balance Transfer article??? I wonder if this is because its sooo bad?

What do you all think?

sicker

I would prefer the % for 9 months, no fee, but do not assume that your leaflet will give you automatic acceptance for the capital one card. I do hope you are successful with your application,

John

Bokken_2

It is a reasonable offer except for the UNCAPPED BT fee @ 2% of the BT transfered to Capital One.
If you BT £6500 .1% = £65 fee and at 2% = £130 fee !

mintymoneysaver

If you go on the internet and type in the code from the Mail leaflet you will still et the original offer till 1st July with 0%.It is not capped, but you don't have to purchase anything.
DH did this last night but they could not make a decision straight away and said they would let him know by post.Does this mean we're likely to be turned down?We have no credit problems so don't know why they couldn't make an immediate decision...any ideas?

SavvyGirlie

Yep. Thanks for all those answers. My fee on £3919 is £78.38. (If I've done the maths right?) Does anyone know if you can pay this straight off or is it held and interest added to it, cos your payments pay off the 0% 1st? I've been a Card Tart for years and have never paid a fee before so I don't know how it works. Thanks for the tip about the leaflet not guaranteeing the card... Although I must say I have never been turned down for credit...

YorkshireBoy

SavvyGirlie wrote:

Does anyone know if you can pay this straight off or is it held and interest added to it, cos your payments pay off the 0% 1st?

This information is contained in the T&C's, which are on the Capital One website...

Allocation of your payments:
Unless you pay the outstanding balance in full, we will allocate your payments under this agreement in the following order:
(a) any cash withdrawal handling fees
(b) any interest
(c) any other fees, charges and expenses
(d) any Payment Protection Insurance
(e) transferred balances (with the exception of those stated at (f) and (g) below)
(f) any transactions described in your statement as 'special balance transfers', 'special purchases' or 'special cash withdrawals'
(g) any other balances that are transferred after the end of the initial period (if any) referred to above under 'Interest Rate' if, at the time of the balance transfer, your agreement has a separate interest rate for the life of balances transferred within an initial period, and all purchases
(h) cash withdrawals.

SavvyGirlie

OK. I get that. So in Plain English... If 3% of £3919 is £117.57, which is how I'll set up my direct debit, £78.38 will go to pay off the charges and £39.19 will go to paying off the debt? Have I understood that correctly?