About to do a BT - quick question

Backbiter

I need to BT around £3500 as my 0% is about to end. Best offer I've had is from Barclaycard - 0% till April 2010 with 2.5% fee, but the offer is only open till 31.7. and I'm off on holiday on Tuesday, so I've got to act quickly.

I've paid off my current Barclaycard balance - did it online last night, having stopped using it a week ago, so it's at zero.

All seems OK, till I read this from CannyJock on another thread entitled 'Credit card juggle:

Need a nil (or positive) balance statement from Natwest to confirm before step 3

I'm being ultra cautious, but my current monthly statement won't show a nil balance before I do the BT, as I haven't received it yet. I've paid it off, but the monthly statement won't be zero until the next date in August, by when the offer will have expired.

Is the fact that my online account will show zero OK? Am I reading too much into Cannyjock's words?

Thanks for any advice.

YorkshireBoy

I've never had a Barclaycard but I'm sure I've seen it posted that in order to avoid problems you need a zero balance statement from them before actioning a promotional rate BT.

I think, and no disrespect to CannyJock, maybe 'Moggles' is your best hope to confirm (as I'm sure it was (s)he who posted it). Hopefully (s)he'll be online soon.

CannyJock

Cleared and closed my last Barclaycard in March after holding out for a repeat offer. Waiting the 6 months before putting in new application.

Haven't tried a BT without a nil balance statement, always played it safe, but general principle applies.

Happy to let Moggles have the casting vote . I'd be tempted to phone Barclaycard CS directly and ask them, but I've found their CS people to be pretty painful to deal with.

Backbiter

I'll ring Barclays, but I'm unsure they'll give foolproof advice - it's in their interests for me to end up paying them interest - although it seems pretty clear to me that at the time the BT takes effect I'll have an online statement showing a zero balance.
I'll search this forum for any bad experiences.

Here's Martin's advice:
http://www.moneysavingexpert.com/cards/barclaycard-offer-loophole

As soon as the debt is moved (wait until you get the statement to confirm the balance is zero), simply balance transfer it back to Barclaycard

I would assume from that that a print out/ screen shot of my online account will confirm it's at zero.

CannyJock

Backbiter wrote: »

I would assume from that that a print out/ screen shot of my online account will confirm it's at zero.

Not necessarily, they define statement periods as being when they produce your statement.

Your next Barclaycard statement would show:

Balance carried forward: £ 500 @ 12.4% from previous purchases (amount doesn't matter)
Payment received: 500
Promotional BT: £ 3,588 @ 0% till April 2010

Their standard T&C's say:

Allocation of payments



Payments you make will reduce your balance in the following order:

1. Default Charges
2. Promotional balance transfers
3. Promotional purchases
4. Purchases, balance transfers and other charges
5. Cash withdrawals

Please see the Barclaycard conditions for further details.

So the question is, what will they allocate your £ 500 payment against within that statement period (I've made up the numbers, but the same principle applies)?

If they allocate your payment to the promotional balance transfer, even though it was incurred after you made the payment to clear the previous month's purchases, then you're stuck with an amount incurring interest and your payments will go against the promotional BT.

That's why it's called the payment allocation trap. Either call them or wait for Moggles to confirm if it's doable

Moggles_2

Barclaycard changed it's Ts & Cs circa November 2007.

As a result, B'Card credits payments to your account on your statement date, regardless of when the payment is received. This means that, unlike most credit cards, if you make a payment before the payment due date, this lender will not reduce an interest-bearing balance until your next statement is produced.

If you were paying no interest on the transactions you settled last night, I would think you're okay with a print-out, but I've not actually put this to the test, preferring to play safe.

If you ring Barclaycard Card Services on 01604 234234, you'll avoid the perishing 0870/0844 numbers and, with luck, the overseas call centre
Note: this is not a static connection. During busy periods, it dynamically routes the call overseas.

Please keep us posted

Very best
M

kcsc

08000282360 old goldfish number now barclaycard/ goldfish

Backbiter

Moggles wrote: »

Barclaycard changed it's Ts & Cs circa November 2007.

As a result, B'Card credits payments to your account on your statement date, regardless of when the payment is received. This means that, unlike most credit cards, if you make a payment before the payment due date, this lender will not reduce an interest-bearing balance until your next statement is produced.

If you were paying no interest on the transactions you settled last night, I would think you're okay with a print-out, but I've not actually put this to the test, preferring to play safe.

I prefer to play safe, too, but as I was paying no interest on last month's transactions I could be trapped with that amount incurring interest when as far as I'm concerned it's been cleared. I'm very glad I spotted CannyJock's earlier post because I was going to do the BT by phone today..

Backbiter

Just rang them - they were very helpful. They advised me that the recent payment to clear the balance would be too close to the proposed BT, and there was a very real chance that the payment would come off the BT and not the balance - as was pointed out by Moggles and Cannyjock.
The good news was that even though the BT cheques expire on 31.7., the offer remains open until 31.8 for telephone transfers, so I'll be able to do it next month, after the August statement will show a zero balance.
Thanks so much much for all your help. If I'd not read Cannyjock's post in the other thread, I'd have paid a 2.5% fee of £88, for the privilege of paying 15% interest on the old £560 balance for the next nine months.
Huge relief all round.

NickX

In this situation, you really are safer to make sure that you see a zero balance statement before actioning the new Balance Transfer.

However, for the record I have twice risked clearing a card to zero and actioning the Balance Transfer within the same statement cycle. One of these was a Barclaycard. I was aware that this was a risk but was ready to argue the case if they charged me interest. If this had happened my argument would be :

"the balance was paid off to zero, then the balance transfer took place. How could that payment possibly be attributed to the balance transfer when the balance transfer had not taken place at that point in time ? Really whether a statement is produced between the transactions or not is immaterial"

I know that they would argue their Terms and Conditions covered it as per Moggle's reply, but I would be up for a confrontation on this one