Balance transfer

LAM2011

Hello my friends, I need your help / advice once again.

I have just phoned HSBC to see if I can transfer £1,000 of MBNA card (34.9%) to the HSBC card. The guy on the phone said no as there are no offers available at present.

I thought I could transfer the balance and not necessarily have a lower interest rate but just the same rate as I am on at present with HSBC (24 odd %)?

What would it cost me to draw the £1,000 out the credit card and pay off the MBNA? Or is that just being silly? Would I have different interest rates for drawing cash - This is what is says at the bottom of my statement if this is any help :

Interest on Standard Balance (Cash) at 2.081% per month
Interest on Standard Balance (Purchases) at 1.946% per month

[Deleted User]

I think he probably misunderstood. You're right in thinking you can do (usually fee free) BTs at your normal retail rate. I don't know HSBC specifically but I can't imagine they're any different from any other card.

Try them again and tell them clearly what you're thinking. A lot of people think 0% when they hear the words balance transfer.

lisyloo

Would I have different interest rates for drawing cash

Yes.
I'm not sure why you can't see it but there are different numbers and one of them relates to cash.

It's about 28% in cash.
You may also have ATM fees and might have to pay them 4 time e.g. if your max is £250.

LAM2011

lisyloo wrote: »

Yes.
I'm not sure why you can't see it but there are different numbers and one of them relates to cash.

It's about 28% in cash.
You may also have ATM fees and might have to pay them 4 time e.g. if your max is £250.

Yes I can see that but wasnt sure how to translate it into APR. You have done it - 28% thanks

lisyloo

1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X <= 12 times althogether
= 1.2803803


I put 1.02081 in my calculator memory to make it easier as then I can press "MR" (memory recall).

izools

lisyloo wrote: »

1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X
1.02081 X <= 12 times althogether
= 1.2803803


I put 1.02081 in my calculator memory to make it easier as then I can press "MR" (memory recall).

All you do is 1.02081 ^ 12

The most basic £2 scientific calculator can do it in one step

lisyloo

I think the full calculation does demonstrate the compound interest that's going on whereas "^" does not necessarily mean a lot to everyone.

izools

Oh ok fair enough