Questions regarding payments and balance transfers.

davepusey

From what I understand, repayments made to a credit card are deducted from the portion of the balance with the highest interest rate first. Is this also true for outgoing balance transfers?

Also, if for example I had a credit card that was -1000.00 (it owed me due to overpayment) can i transfer a balance of 1000 to it from another card, bringing it back to 0.00? Would there be a charge/fee for the transfer even though i'm not in debt on that card?

thenudeone

If you have overpaid I would ask them to transfer the funds to your bank free of charge, which some will do.
If you do a a balance transfer to "use it up" you will probably be charged the balance transfer fee (usually 3% or so)
If you ask for a "cash transfer" you may be charged up to 4%, so you need to be clear about the charges before they do the transaction.

Alternatively just spend on it!

davepusey

thenudeone wrote: »

If you have overpaid I would ask them to transfer the funds to your bank free of charge, which some will do.

That sounds like the best option then. How would you suggest I get this done?

zppp

davepusey wrote: »

That sounds like the best option then. How would you suggest I get this done?

Callt them and ask. Or they may be able to send you a cheque for the balance.

davepusey

zppp wrote: »

Callt them and ask. Or they may be able to send you a cheque for the balance.

What should i say? Should i say it was a mistake (transfered from wrogn card)

I don't to make a hash of it, and get stuck with it like that.