using a balance transfer card for purchases

ajj81

Hi,

my virgin card has a new promo rate (0% for 6 months) on it for balance transfers so here's my scenario.

The rule of thumb is not to use a balance transfer card for purchases, but virgin state that the higher interest rate attracting balance is paid off first. I have a reasonable limit on and want to make use of it.

If I did transfer balances on to it, it would enable me to close down another card for 6 months and then apply for a new card to transfer the remaining balance to when the 6 months is up!

Has anyone used this 0% rate and continued to use their card for day to day spending? I pay off my debts at the end of each month (so not attracting interest) and also have so seperate money to make payments towards the balance transfer amount.

Does this sound feasable or should I just move the balance to one and use the other for day to day stuff?

thanks

[Deleted User]

Once a card moves to the new payment hierarchy, you can combine BT and purchases. As long as you pay off at least what you spend, you'll pay no interest.

chexum

Deleted_User wrote: »

Once a card moves to the new payment hierarchy, you can combine BT and purchases. As long as you pay off at least what you spend, you'll pay no interest.

Are you sure? The current terms usually single out that you don't pay interest only in the case, when you always pay the statement balance in full. In effect, there can't be an interest free period for purchases if you carry a balance, no matter how did you accumulate it...

[Deleted User]

That would only apply with a full balance of interest bearing transactions. At least I would have thought but have to admit, now you've raised it, am not entirely sure.

I would still think that if you are paying the interest bearing balance in full each month, you would be ok. ie treat it as two separate balances. But we'll all need to check...