Balance transfer question - is this right

maximus999

Hi all,
Right there is two cards, one has £1000 on it and want to do a 0% balance transfer to the other. All simple.

When we transfered it to the other card we put something on the same card, a small purchase. The bill has landed and we are being charged interest, we never pay interest as we pay the full balance off every month.
We phoned the card company up (asda) who said any payments come off the balance transfer first, by the way they are doing this seems a con! we paid 3% handling charge for the service of no interest for 12 months.

I dont get it!!

anyone been in a similar boat

izools

OK so you transferred 1K at 0% for 12 months, you also made a purchase, which as you know, has a standard APR of whatever it is.

So you pay interest from the date you made the purchase to the date the balance of the purchase was paid, as you aren't paying off the whole bill (purchase + transfer) in one go before the due date.

No con, all laid out in the credit agreement, and same for any credit card except those with a separate introductory offer on purchases

maximus999

Hi thanks for the reply, i think i put it across wrong,
We transfered £1000 on 12 month interest free, presuming we would not be charged any interest for 12 months, we bought something for £100 using the same card, when the bill came in we paid the £100 but this was took off the balance transfer which when the next bill came out to us there was interest added as the £100 item we bought had nothing deducted from the payment we made the previous month.

The way I am starting to see how these work is to not make any purchase on a balance transfer card.

izools wrote: »

OK so you transferred 1K at 0% for 12 months, you also made a purchase, which as you know, has a standard APR of whatever it is.

So you pay interest from the date you made the purchase to the date the balance of the purchase was paid, as you aren't paying off the whole bill (purchase + transfer) in one go before the due date.

No con, all laid out in the credit agreement, and same for any credit card except those with a separate introductory offer on purchases

BoGoF

First rule of balance transfers......never spend on the card