Balance transfer handling charge?

dt3000

When doing a balance transfer to a new card they charge around 3% as a handling fee. Does this handling fee go on the card or can you pay it via a debit card. If it goes on the credit card then I assume you pay interest on that handling fee until the balance is paid off because of the way they allocate payments e.g any paments you make pay of the lower interest balance first.

maninthestreet

Im my experience, the handling charge is charged to the CC account. There is no option to charge it to another account.

CannyJock

On most cards the fee is added to the balance transfer amount and becomes part of the 0% balance, so there's no interest to pay during the promotional period. There was one provider (name escapes me till I've had more coffee) who charged interest on the fee.

Best way to find out is to call their CS people and ask them. Then call back 2 minutes later and ask another one to double check.

YorkshireBoy

CannyJock wrote: »

There was one provider (name escapes me till I've had more coffee) who charged interest on the fee.

RBS, NatWest, Tesco, & LTSB all charge interest on the fee I believe CJ.

Barclaycard and Egg used to, I seem to recall, but perhaps not anymore?

CannyJock

Cheers, was LTSB I was trying to remember.

Have just checked my last few stoozes with RBS (Natwest/Mint/Ulster) and no interest on the fees with them. Still have a Natwest and Ulster running - the Natwest repeat was 0% fee so no surprises no interest on £0.00 but the Ulster repeat was 12 months 0% with a 2% fee and definitely no interest on the fee.

YorkshireBoy

From the RBS website...

"The balance transfer fee will attract interest at the same rate applied to purchases from the date charged until paid off."

From the Tesco website...

"The balance transfer fee attracts interest at the rate charged to purchases until paid off."

Maybe their order of payments means that interest isn't incurred for new customers during the intro periods on these cards?

NickX

CannyJock wrote: »

Ulster repeat was 12 months 0% with a 2% fee and definitely no interest on the fee.

I had this repeat deal aswell and there was interest on the fee but it was paid off in the first repayment, with a little residual interest in the second repayment. Then it was finished.

Must be to do with allocation of payment rules as YB has suggested.