Halifax One Credit Card - really 0% or am I missing something?

Randy_Trouserman

Morning all,

have signed up for a Halifax Credit Card, 0% for 9 months. The statement has arrived and needs a minimum payment of just over £100.00.

How come? I'm presuming this min payment isn't offset against the total each month? The statement says cash is at 23.95% pa and purchases 15.94%.

What am I missing?

Thanks

RT

cifpower

What's the balance on your account?

Twinblade

I have the same card as you due to the 0% on balance transfers and my monthly payment is 1% of the balance, so assume yours will be too, unless you have made purchases since the balance transfer, therefore having to pay interest on those too?

Randy_Trouserman

Hi,

I't started at £0 and hasn't had anything transferred on to it. Got it because I could stack a lot up on it for 9 months, then pay it off. Balance currently 8k, £500 short of my limit.

Any help?

lisyloo

It's perfectly normal to have to repay a minimum of this sort of figure.

Here's the wording I found on their website

If the balance is less than £5 then you must repay the full amount. If the balance is £5 or more, you must repay the greater of 1% of the amount you owe us or an amount equal to the total of any Credit Card Repayments Cover premiums, Interest (or the minimum interest charge), overlimit and late payment fees plus £5.

So 1% is £80.
Can you tell us what the other £20 is for.
Is it insurance premiums? interest? or charges?
If you don't know then I would suggest phoning them up to ask, but it should be shown on the statement.

You should not spend on a BT card. NEVER EVER.
The reasons is that the majority of cards take repayments off your 0% first, so you will be charged interest on the purchases until your balance is cleared.
It's in their interest to repay the 0% and not repay the interest beaing amount.

oceanscape

lisyloo wrote: »

It's perfectly normal to have to repay a minimum of this sort of figure.

Here's the wording I found on their website



So 1% is £80.
Can you tell us what the other £20 is for.
Is it insurance premiums? interest? or charges?
If you don't know then I would suggest phoning them up to ask, but it should be shown on the statement.

You should not spend on a BT card. NEVER EVER.
The reasons is that the majority of cards take repayments off your 0% first, so you will be charged interest on the purchases until your balance is cleared.
It's in their interest to repay the 0% and not repay the interest beaing amount.

But this card is 0% for 9 months on PURCHASES as well, so you can do a BT and still spend on the card so long as you clear after the 9 months.

NickX

lisyloo wrote: »

You should not spend on a BT card. NEVER EVER.

Whilst this is generally good advice, I would not say "NEVER EVER".

If a card has a Balance Transfer and a Purchases promotion with identical interest rates and identical promotion end dates, then there is no problem with benefiting from both purchases and Balance Transfers.

In addition, some providers (such as Nationwide and certain MBNA cards) actually have a favourable payment hierarchy, meaning that payments actually pay off the higher rate debt first, allowing you to clear this whilst keeping the promotional balances intact and interest free. It really depends on the specific Terms and Conditions of the deals in question.

poppy_f1

the first payment i made to my halifax card comprised of the normal monthly payment as well as the BT fee

Randy_Trouserman

Thanks folks,

going back to basics...

• is my min monthly payment coming off the balance?
• am I splitting hairs or is this card actually not 0% for 9 months?

Ta RT

NickX

Randy_Trouserman wrote: »

• is my min monthly payment coming off the balance?
• am I splitting hairs or is this card actually not 0% for 9 months?

Your Minimum Payment will reduce the balance accordingly.

I believe that this card does offer 0% for 9 months, but to be sure you need to check YOUR Terms and Conditions because these are the ones that will count if there is a dispute.

Good Luck.

Volcane

Randy_Trouserman wrote: »

Thanks folks,

going back to basics...

• is my min monthly payment coming off the balance?
• am I splitting hairs or is this card actually not 0% for 9 months?

Ta RT

You're not getting confused with the 0% terms are you? You STILL have to payh 1% of the balance back each month... it's JUST the interest that's charged at 0% (ie nothing) for the term of the offer.... monthly payment terms are as normal.