Amazon Credit Card - Spend + Balance Transfer

BMJT

Hi,

I recently applied for, and received, an Amazon credit card which offers 0% on spending until Sept 2011 and 0% on balance transfers (3% fee) until Dec 2011. I do use the card for spending on, but I have another balance on a Tesco CC I want to transfer in, the 0% period of which ends quite soon.

My concern is that Martin always says never ever spend on a card that you use for balance transfers, but the offers here seem to suggest this will be ok. Are there some loopholes I haven't considered that will see me paying more than expected? Or should I proceed?

Thanks,

Ben

12bdebt3

BMJT wrote: »

Hi,

I recently applied for, and received, an Amazon credit card which offers 0% on spending until Sept 2011 and 0% on balance transfers (3% fee) until Dec 2011. I do use the card for spending on, but I have another balance on a Tesco CC I want to transfer in, the 0% period of which ends quite soon.

My concern is that Martin always says never ever spend on a card that you use for balance transfers, but the offers here seem to suggest this will be ok. Are there some loopholes I haven't considered that will see me paying more than expected? Or should I proceed?

Thanks,

Ben

READ PART 1 OF THE SMALL PRINT!

http://www.amazon.co.uk/gp/cobrandcard/marketing.html?ad=SURL1

1. If you have two or more promotional offers at the same rate, we will use your payments to reduce any promotional balance with the lowest standard rate last, even if this offer ends first. This could mean that any such balance may not have been reduced by the time the standard rate applies to it. Promotional rates will no longer apply from the beginning of any statement period during which you have breached your terms and conditions.

BMJT

Thanks for the quick reply, although I must say i'm still not totally sure what that means in regard to my situation. Would you be able to expand on it?

Thanks.

12bdebt3

If you have two or more promotional offers at the same rate. (You will do if you purchase and do a BT.)

We will use your payments to reduce any promotional balance with the lowest standard rate last, even if this offer ends first. (Say you do a BT for £1,000 and spend £500 on Amazon, the £500 will be paid off first and the BT will be put on hold, you will then start paying that off when purchases are paid off.)

This could mean that any such balance may not have been reduced by the time the standard rate applies to it. (Basically, your BT might still be the full amount by the time the 0% offer ends.)

Promotional rates will no longer apply from the beginning of any statement period during which you have breached your terms and conditions. (Self explanatory.)

BMJT

That's brilliant, thank you.

dmoyes

I thought there where new rules about companies allocating any amount you pay off to the most expensive debt. Surely the most expensive part is the BT as you will start to be charged for that earlier?

I am in the same position as the other person, some money on a CC eg £1000 and £500 spent on the card. Now back to £1000 balance.

If I was to pay off anther £800 but continue to spend on the card and the BT period ends I will have to pay interest? Even if the value outstanding is only say £200?

If you where to pay all of the balance off and have a few days with a zero balance then use the card to purchase is that on the 0% purchases?

12bdebt3

dmoyes wrote: »

I thought there where new rules about companies allocating any amount you pay off to the most expensive debt. Surely the most expensive part is the BT as you will start to be charged for that earlier?

It's not the most expensive debt, it's the debt with the highest standard rate which doesn't mean the most you owe for.

dmoyes wrote: »

If I was to pay off anther £800 but continue to spend on the card and the BT period ends I will have to pay interest? Even if the value outstanding is only say £200?

If your promotional 0% offer ends or you break the terms and conditions and it is taken off you. You will owe whatever is outstanding from that point. So yes if you owed £200 on a BT and you broke the terms or the offer ended then you will pay interest on that £200 only.

dmoyes wrote: »

If you where to pay all of the balance off and have a few days with a zero balance then use the card to purchase is that on the 0% purchases?

Yes, but only until the offer ends.

dmoyes

arrontdep wrote: »

If your promotional 0% offer ends or you break the terms and conditions and it is taken off you. You will owe whatever is outstanding from that point. So yes if you owed £200 on a BT and you broke the terms or the offer ended then you will pay interest on that £200 only.

If BT was £1000, I pay off £1,300 (extra from using the card for purchases) and have £200 left on the card.

The 0% on purchases is 6 months longer than BT.

So I would be paying off any, more recent, purchases with any payment I make onto the card?

Thank you for clearing the new rules, I understand they charge different amounts if you where to take out cash on a credit card they can rip you off.

12bdebt3

dmoyes wrote: »

If BT was £1000, I pay off £1,300 (extra from using the card for purchases) and have £200 left on the card.

The 0% on purchases is 6 months longer than BT.

So I would be paying off any, more recent, purchases with any payment I make onto the card?

Thank you for clearing the new rules, I understand they charge different amounts if you where to take out cash on a credit card they can rip you off.

Yes, you would be paying off the remaining money of your purchases with interest.