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Capital one
JILLPLATTS
Posts: 1 Newbie
in Credit cards
As an existing customer of Capital One if you have had a recent mail drop re 0% balance transfers check carefully the conditions before you complete this. I already have a balance on 0% which I will pay off by its scheduled finish date, but if you apply under this new offer and transfer another balance over you may incur interest charges on your existing balance under their 'payment allocation policy' which is very unclear when explained. I have now applied to a different company to be on the safe side.
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Comments
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Welcome to MSE!
Yes, this applies to virtually all credit card companies, not just Capital One*
Unless stated otherwise, you can bet that repayments will be allocated to your outstanding balance in a way that benefits the cc provider, not you.
If the new offer ends earlier, for instance, there's every prospect that your existing transactions, which currently cost nothing, will be paid off first, leaving the funds you've shifted more recently attracting interest :rolleyes:
*If memory serves, the only exceptions are the Nationwide and Saga credit cards.People who don't know their rights, don't actually have those rights.0 -
JILLPLATTS wrote: »As an existing customer of Capital One if you have had a recent mail drop re 0% balance transfers check carefully the conditions before you complete this. I already have a balance on 0% which I will pay off by its scheduled finish date, but if you apply under this new offer and transfer another balance over you may incur interest charges on your existing balance under their 'payment allocation policy' which is very unclear when explained. I have now applied to a different company to be on the safe side.
Hi there,
Thanks for pointing this out. I too got the mailing letter and i was going to let my Mrs transfer her balance ( as she's occuring £10 a mth in interest) onto my Capital One card but i'm a bit wary now.
I have an outstanding balance from the 0% purchases offer which is due to end on the 1st Nov, it's not much and i would have it payed off just before the 1st, can anyone explain the allocation policy though with Capital One?
I don't want to be paying any interest to them!0 -
When does the 0% period for balance transfers expire?I have an outstanding balance from the 0% purchases offer which is due to end on the 1st Nov. It's not much and i would have it paid off just before the 1st. Can anyone explain the allocation policy though with Capital One?I don't want to be any paying interest to them!People who don't know their rights, don't actually have those rights.0 -
The deadline for taking up the offer is 14 September, but when does the 0% period come to an end? This expiry date is crucially important when weighing up the offer0% expires/deadline to process balance transfers is 14th Sept!
People who don't know their rights, don't actually have those rights.0 -
In a nutshell, if the 0% periods on purchases and BTs expire together then, credit limit permitting, you could take advantage of both offers.The deadline for taking up the offer is 14 September, but when does the 0% period come to an end? This expiry date is crucially important when weighing up the offer
If, as seems likely, CapOne's latest offer ends after 1 November, your purchase transactions would remain trapped on the card attracting interest from 1 November onwards, until the balance transferred from your wife's cc was paid off. In effect, you would have only until 1 November to clear the entire balance on your C1 card, if you wanted to avoid interest charges.People who don't know their rights, don't actually have those rights.0 -
The deadline for taking up the offer is 14 September, but when does the 0% period come to an end? This expiry date is crucially important when weighing up the offer
Hi again, apoligies for the late reply!
Purchase's 0% expires 1st Nov, Balance transfers 0% expires 12 months from 14th SeptIn a nutshell, if the 0% periods on purchases and BTs expire together then, credit limit permitting, you could take advantage of both offers.
If, as seems likely, CapOne's latest offer ends after 1 November, your purchase transactions would remain trapped on the card attracting interest from 1 November onwards, until the balance transferred from your wife's cc was paid off. In effect, you would have only until 1 November to clear the entire balance on your C1 card, if you wanted to avoid interest charges.
Really! even though it states get 12 months 0% on balances transfered
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Well, the above statement is accurate, isn't it?Really, even though it states get 12 months 0% on balances transferred
It's the purchase transactions that would remain trapped on your card attracting interest from 1 November onwards.People who don't know their rights, don't actually have those rights.0
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