Confused about 0% interest on BTs and APR etc.

Audity

Basically, I've had a Barclaycard now for years and been paying off £100 here and there but generally paying off the minimum payment. My limit is £600 and I recently got a text saying it's over due because the payment hasn't come out my bank for some reason (will I have to pay a fee?).

Anyway, I noticed the Barclaycard Platinum and it says 0% interest on balance transfers for 16 months. Say if I transferred my £600 balance from my existing credit card to the Platinum, does that mean I will not be charged any interest on top of the repayments for 16 months?? I can't help but feel I'm being way too optimistic!

Have I got it completely wrong? The typical APR is 16.9, but I have no idea whether that will be charged right from the start. What exactly is the benefit of having 16 months 0% on balance transfers?

Thanks in advance!

geordie_ben

You may have to pay a charge for the 'missed' payment, but if its your banks fault get the charge refunded and ask them to put a note on your file stating it was there fault

And actually, you are correct, you'll pay no interest for 16 months as long as you stay within the limit, make the minimum payments every month and you do the balance transfers within the allotted time

But.... you already have a Barclays card, so cant switch to another Barclays card. You'll need to pick another supplier. Your next best choice is the MBNA Platinum Plus (link) which is still 0% for 16 months with a one off free of 2.88% (£17.28 approx on your £600)

To pay it off in the 16 months you'd need to pay £38.58 a month (£600 + £17.28 / 16 months)

scottswald

very good info from ben there....

Audity

Thank you very much, Ben. Everything I wanted to know. The bad news is, I've already tried applying for the MBNA card and was rejected. Not sure why.

Is there anything I can do to increase my chances of being accepted for a balance transfer?

geordie_ben

Audity wrote: »

Thank you very much, Ben. Everything I wanted to know. The bad news is, I've already tried applying for the MBNA card and was rejected. Not sure why.

Is there anything I can do to increase my chances of being accepted for a balance transfer?

Bit of tricky one, possibly contact MBNA and ask why you were rejected. have you checked you've done everything possible to make credit file good? like make sure its up to date, electoral role etc?

My gut instinct says wait 6 months before applying for anything else. about 2 years ago i just applied for the top 5 cards one after another, and they all declined me, have a feeling that destroyed my already terrible credit rating

1st - check your credit file - update if needed and correct where needed too
2nd - pick another option... is your overdraft 0%? have your rang your credit card comp for current existing customer offers...
3rd - have you budgeted your monthly/weekly money? can you skint yourself for a month or three and pay all the debt off in one go?
4th... make some extra money and whack it all on the debt

shout if you need more help