Post office credit card, 5 months again and again??

saz2696

Hello,

I have a post office credit card which i am coming to the end of a 12 month interest free period with. When i spoke to them a couple of weeks ago they said i will receive a further 5 months interest free if i borrow more money with them but i cant do this until my october statement.

Is that what this means which i have taken from there website:

"0% on new balance transfers1 for 5 months again and again3"

and does this meen that i will continue to keep getting the additional 5 months interest free if i keep borrowing more every 5 months.

Thanks

BenL

I would read it as "5 Months interest free on new balance transfers" (All the other balance transfers and spending you have done before will be charged at your standard rate - probably 18.9%)

I don't have a this product myself but it is normally what would happen with other providers.

Ben

Any

From what it says it means that you will start getting interest on the old balance and you will have 0% on the new balance transfer.

Many providers offer something like this (especially MBNA family).

Hax

In which case, I'd be wary as it's quite likely that any payments you make will be towards the "new" 0% transfer and your old balance would accrue interest charges at the full rate, without being reduced by your payments.

nomoneytoday

IMHO The way round is to BT it away and then back, assuming the cost to do so is lower than 5 months interest

Any

Hax wrote: »

In which case, I'd be wary as it's quite likely that any payments you make will be towards the "new" 0% transfer and your old balance would accrue interest charges at the full rate, without being reduced by your payments.

Yes.
But that has to change by law from January. Lenders have to apply the payment to the highest costing balance first.
MBNA already does it.

Hax

Indeed - but that's January - meanwhile...

chattychappy

Yep, things will be better next year in this respect.

If the card has a zero balance, then the 5 month deal might be worth going for. But with the BT fee it's not so great....