Balance Transfers Dishonest?

thewinelake

I'm scratching my head a bit about an aspect of Balance Transfers that I feel deserves more public exposure, if not outright banning. I'm so surprised, that I'd like to get some feedback from you Credit Card whizzes about how I'm being so stupid.

Let's start with basic credit card usage - One should always avoid paying interest to credit card companies by paying off balances in full by the time it says on the statement. Simple. I call that "interest free credit card purchasing".

Now let's add the concept of balance transfers. I had a Nationwide Gold card which offered a 6 months 0% interest transfer (although there was a small transfer fee, I think). What I didn't realise was that by taking up that offer, I'd lose the right to interest-free credit card purchasing. i.e. Unless I pay off the entire balance transfer as well as any expenditure on purchasing, I'll incur interest on the purchases.

Are all credit cards like this? Am I being oversensitive in objecting?

Clearly the answer is to only use a card for balance transfer OR purchasing. I think I got caught out because that seems silly to the point of being a bit self-defeating for the credit card company (who'd presumably like to make money out of a customer for both parts of the business).

stephane_2

Most CC providers offer balance transfer & purchases at 0% and generally the purchase offer last not as long as purchases and any payments made towards the account is going onto the balance transfer first so if you balance transfer is not paid by the time the purchase one end then you'll start accruing interest on purchases. It's all in their T&C

thewinelake

stephane wrote: »

Most CC providers offer balance transfer & purchases at 0% and generally the purchase offer last not as long as purchases and any payments made towards the account is going onto the balance transfer first so if you balance transfer is not paid by the time the purchase one end then you'll start accruing interest on purchases. It's all in their T&C

Yes. But I'd expect that the period between purchase and statement-due-date to be free if I pay off all purchases on time.
I don't dispute that the T&C support their position, but don't you see the same lack-of-senseness about it that I do?

stephane_2

You cannot decide what part of the balance you can pay...that is how they make their money, this is also why NEVER EVER make any purchases on a balance transfer card. For me it just make sense...

thewinelake

stephane wrote: »

You cannot decide what part of the balance you can pay...that is how they make their money, this is also why NEVER EVER make any purchases on a balance transfer card. For me it just make sense...

That is very good advice.
But doesn't it seem odd that one should only be able to (sensibly) use a credit card for one thing or the other?

It seems to me like one's buying a car and then getting a roofrack for it with the advice - you can drive this car OR you can put things on the roof - but don't try doing both at once!

CLAPTON

honesty doesn't come into it.

you play the system or you don't

surely you don't expect to get six or twelve months interest free money with no catches?

a case could easily be made to ban 0% BT or 0% purchase deals to protect people who think the banks are doing them a favour.

most cons are based on the assumption that greedy people will be attracted to them

thewinelake

So you do accept that it's a con? The only thing is that it's ceased to be shocking (or even mildly surprising).
Perhaps that is a fair reflection of society...

Any

Completely agree with Clapton and others.
Let's face it - banks are not here to be our friends, they are here to make money.

That is why you should never ever apply for a product you don't understand. The problem is that many people think they do understand, because mate has got one and don't bother reading the T&C...

Any

thewinelake wrote: »

So you do accept that it's a con?

Con is when someone lies to you from the beginning.. As long as they state it in the T&C it's not a con.

You might use other terms, but not a con.

CLAPTON

Of course it's a con but it works because people are greedy

Basically if something seems too good to be true then it is.... free money for 6 months ..obviously rediculous.

some people use these offers to make money (stoozers) but you have to be very wide awake and no-one there talks about honesty or fairness.

Any

CLAPTON wrote: »

Basically if something seems too good to be true then it is.... free money for 6 months ..obviously rediculous.

And how about the last Virgin offer 0% BT no fee for 9 mths??;)

Nowadays you have to read the small print very carefully...

But I don't think it's just modern world thing, I think it was here for a long time..