Balance Transfers & credit allowance?

Nine_Lives

I have an allowance with Tesco of £2,250 which i've just about spent now (have maybe £5 left).

I've opened one with AA which gave me £2,800.

If i'm correct, then there's a 0% BT fee for the AA card (i'm new to this so hope i'm understanding right) - so transfering my balance FROM tesco TO aa should cost me nothing, correct?

My question is (as i'm new to the game), would my £2,250 spent on my Tesco card count towards my AA balance, leaving me only £550 to spend, or not? How does it work?

cifpower

If you transfer a balance from tesco to aa then this balance will reduce your amount available to spend on the aa card accordingly. Of course, you should not spend on a card to which you have transferred a balance. The AA card does, however, charge a 3% fee for balance transfers which for a balance of £2250 will be £67.50. This will be added to your new card account balance.

fozmcfc

According to the AA website, you pay a 3% fee, so basically you transfer £2,250 your balance will be £2,250 + 3%.

EDIT....Beat me to it lol.

EDIT again......Just one point, it is ok as such to spend on an MBNA backed card as the payments now go towards the purchases first.

Nine_Lives

3%? Am i missing something here?

The email i got from AA:

cifpower

https://www.euapplyonlinenow.com/UKCCapp/Ctl/link?eid=7D803AC9

This is the summary box of the card you applied for which you should have read before progressing with the application.

YorkshireBoy

K_P83 wrote: »

3%? Am i missing something here?

The credit agreement?

The summary box?

The main features page?...http://www.theaa.com/credit-card/index.jsp

The balance transfer calculator here?...http://www.theaa.com/finance/calculators/credit-card-balance-transfer-calculator.html

Nine_Lives

Ahh. That's a sucker isn't it. Bamboozled by the (small, but not quite THAT small) print.

I saw it say 0%. Didn't see the 3% right next to it LoL.

So how is it 0% yet 3% at the same time? I'm well aware to those in the know that's going to be a stupid question, but i don't know. I've only recently started out with credit cards & am just about getting to grips with some of the terms.

YorkshireBoy

K_P83 wrote: »

So how is it 0% yet 3% at the same time?

The former is an interest rate, and the latter is a fee to 'buy' that interest rate on a transferred balance for x months.

CLAPTON

K_P83 wrote: »

Ahh. That's a sucker isn't it. Bamboozled by the (small, but not quite THAT small) print.

I saw it say 0%. Didn't see the 3% right next to it LoL.

So how is it 0% yet 3% at the same time? I'm well aware to those in the know that's going to be a stupid question, but i don't know. I've only recently started out with credit cards & am just about getting to grips with some of the terms.

there is a one off 3% fee
the interest rate is 0%


however, the way you write you seem to be planning to spend even more money on the card
you would be advised not to increase your debts even if the interest rate is 0%... it will all have to be paid back

Nine_Lives

CLAPTON wrote: »

there is a one off 3% fee
the interest rate is 0%


however, the way you write you seem to be planning to spend even more money on the card
you would be advised not to increase your debts even if the interest rate is 0%... it will all have to be paid back

You must misunderstand the way i write then (no offence & thanks for the help (& to YorkshireBoy too)).

I'm only asking questions to understand the game, that's all.

My Tesco card has £2,250 on it. That's all i'll spend & before the 12 months is up, i'll pay it off.

My AA has £2,800 on it & lasts for 10 months & before that time is up, i'll pay it off.

bouncydog1

Confused - thought you wanted to do a balance transfer from Tesco to the AA but you are now saying that you will spend and pay off a total of £5k in the next 12 months?