The Best Balance Transfers article discussion area

kitten69

Hi I have just applied for a barclaycard platinum 0%deal for 14 months and i notice the offer says if you spend on the card before 30th November you get a £50 voucher for m&s. Now I am only using the card for a balance transfer and I know Martin :money: always says never spend on the card, just wondered what it would cost me if i spent a £1, as no minimum spend to qualify,what interest woul i be charged, think its 14.9%apr and is it worth it for the £50 voucher .
Hope some one can help Thanks:j

skay2007

Hi guys,

Can you pay the handling charge for transferring a balance to a new card up front or does it have to go on the card? If so do you have to pay interest on the sum?

:undecided :undecided

renard_2

Moggles wrote: »

It's a decent deal but Citibank is not known for its generous credit limits, so you may not be handed sufficient credit to transfer both balances.

Have you considered the Marks & Spencer &More card?

Moggles: From their website, it appears that Marks and Spencer have now altered the 'balance transfer' terms of their &MORE card. It used to be something like 5% for as long as it took to clear your debt, which was really worth having. Now, it appears to be nearly 8%, and for only two years - nothing like such a good deal.

I think I have read their website correctly. If so, the &MORE card is no longer so attractive.

Also, I assume Martin will have to consider updating his advice in which he recommends this card.

Moggles_2

Originally Posted by kitten69
I have just applied for a barclaycard platinum 0% deal for 14 months and I notice the offer says if you spend on the card before 30th November, you get a £50 voucher
for M&S.

Now I am only using the card for a balance transfer and I know Martin always says never spend on the card. Just wondered what it would cost me if I spent a £1? As there's no minimum spend to qualify, what interest would I be charged (think it's 14.9% apr) and is it worth it for the £50 voucher?

When applicable, the minimum interest charged by Barclaycard is £1 per month. At your standard rate, you would pay £1 per month for 11 of the 14 months.

Generally speaking, it's wise to keep your balance transfer(s) and purchases on separate credit cards. This is because under the terms of most 0% promotions, monthly repayments are allocated to the transferred balance(s) first, while retail transactions sit on successive monthly statements attracting interest at the standard rate, which is variable. Currently, Barclaycard charges 14.9% APR on purchases and by December 2008 this rate may have soared even higher :eek:

This is exactly the poo-trap Barclaycard calculates some customers will fall into and it's one of the main ways, IMO, the bank stands to make money! Those taking up this balance transfer deal, are offered 0% on purchases for just 3 months and then bombarded with advertising aimed at persuading them to spend on the card as well :rolleyes:

Moggles_2

Originally Posted by skay2007
Can you pay the handling charge for transferring a balance to a new card up front or does it have to go on the card? If so do you have to pay interest on the sum?

While the majority of lenders now charge balance transfer fees - a trend started by MBNA - just three, AFAIK, charge interest on BT fees.

Barclaycard, LTSB and Royal Bank Of Scotland treat these handling charges as purchase transactions which are paid off last, so the BT fee is left sitting on successive monthly statements attracting interest.

In the case of RBS, I believe you can pay the handling fee with your first monthly payment and avoid this practice.

miamidice

ahhhh
that si

lion1

I took Martins advice a few months ago and applied for a Bank of Ireland o% deal as I bought a car and did not want to pay any interest via a bank loan or credit card. This deal is now coming to an end so I have taken advantage of the Barclaycard offer (14 months interest free with a 2.5% transfer fee) - however Barclaycard will not transfer from an Irish Bank (UK Only) - have you any ideas about how I might get around this ?:mad:

Moggles_2

Hi lion1

Welcome to MSE & the credit card board!

Barclaycard will not transfer from an Irish Bank (UK Only) Have you any ideas about how I might get around this?

Sounds as though you were given duff information. I've transferred balances from the Post Office card which is run by the Bank of Ireland without difficulty.

This sort of thing happens to us all sometimes. IMO, it's best to ring again, preferably during normal business hours, when you're more likely to be put through to someone who knows

alrewas

I have recently done a balance transfer to RBS and received my first statment today.
The transfer fee has been entered as a purchase and will therefore i belive incur interest in 3 months. is this right or is there a way I can clear this amount before the interest kicks in.
thanks

Moggles_2

Originally Posted by alrewas
I have recently done a balance transfer to RBS and received my first statment today.

The transfer fee has been entered as a purchase and will therefore i believe incur interest in 3 months. Is this right or is there a way I can clear this amount before the interest kicks in?

Please see #649 above