BT Fee or not??

Red_Setter_2

Can anyone help me with this?

I have just found a 0% for 9 months BT card but in the summary box for the card under the "Charges" for Balance Transfer Fees the following is stated: "2% or minimum £2 (on promotional rates except introductory offer)".

My understanding of this is that no BT fee would be due if the BT was made during the introductory offer, whatever this may be? I have rang the card supplier, Halifax, several times now to try to have this explained and guess what? I got a different answer every time.

Have any of you experienced this term before and could you please let me know what it means?

Many Thanks,

Red Setter.

Moggles_2

My understanding of this is that no BT fee would be due if the BT was made during the introductory offer

That's how I read it too.

Which credit card is this? AFAIK, the only deal which offers 0% on balance transfers at present with no handling charges, is operated by Bank of Scotland. Same stable as the Halifax, of course.

a&akay

If this is a charities' card, eg scouts, then stick to your guns when activating the account as they may try it on. They did with me and, as you say, the fee does not apply during the introductory offer so quote the small print. Have your transfer card(s) and amount(s) handy when you ring and ask for the maximum you can transfer. Remember also that you may be able to spend the difference up to your credit limit on the card in purchases if it is 0%for transfers and purchases like mine. As you pay off the minimum each month you can again spend up to your limit for the promotional period once the payment shows in your account.

Red_Setter_2

The card is the unioncard available at http://www.unioncard.co.uk and as you say Moggles it is operated by BoS ( I got mixed up as I also rang Halifax about similar wording when I applied for the Norwich & Peterborough card).

Anyone had any experience of credit limits with these cards?

Thanks for the advice, will let you know how I come on when I get the offers/cards.

Moggles_2

Anyone had any experience of credit limits ...

When I applied for BoS's charity card in April, the deal was identical to the current union card.

BoS gave me a good credit limit. Also, you can request a fee-free balance transfer at any time during the 0% introductory period.

You'll be asked to leave a margin of around 8%, but unlike the Norwich & Peterborough card, you get 0% on retail purchases as well so, as pointed out already, you can spend the difference up to your credit limit!

I also rang Halifax about similar wording when I applied for the Norwich & Peterborough card

Halifax and BoS are part of the same stable, HBOS. This may affect the credit limit you're offered.

DazCM

Slightly off-topic I know, but if you do pay a Balance Transfer fee, when does the Credit Card Company charge you? Is it in addition to your first monthly payment, or can you effectively slow-stooze the charge over the 0% period?

Thanks from a newbie stoozer.

Moggles_2

I've managed to avoid balance transfer fees so far, so this question really had me thinking.

I presume your first payment is allocated to the handling charge and any remaining money put towards the balance.

However, most MSEs pay no more than the minimum 2%-3% for the entire 0% introductory period, so the charge is effectively slow-stoozed over the 0% promotional period!

Caution: the allocation of payments varies between providers, so the above reasoning can't be applied.across the board. As always, it pays to check your ts and cs.

YorkshireBoy

Moggles wrote:

I presume your first payment is allocated to the handling charge and any remaining money put towards the balance.

I think DazCM's question was more of a general one, rather than being charity card specific. In which case the answer lies in the respective card's 'order of payments'.

For example...

MBNA (and MBNA run cards) collect the BT fee with the first minimum payment.

Capital One charge a 2% fee, but because it's repaid 'first', it's in effect swallowed up by your first 3% minimum payment.

Egg and LTSB (I think?) leave the BT fee attracting interest, since they class it as a purchase transaction, which are paid off last*.


* In the case of Egg, this would only be an issue in the anniversary period since they offer 0% on both BT's and purchases during the introductory period.

Moggles_2

So Capital One is the only deal where the charge is effectively slow-stoozed over the entire 0% period!

How interesting?

Red_Setter_2

Got Norwich & Peterborough - £5.8k credit limit and 0% for 6m with no BT fee. Also got Union Card - also £5.8k limit and 0% for 9m with no BT fee.:beer:

humfer

Save the hassle with these charity cards and go for a Post Office or a M&S card. Only 6 months but piece of mind