Barclaycard Flexi-Rate

BindiBahji

Got a Barclaycard offer through the post for 0% on BTs for 12 months with a 1.25% handling fee which at first glance sounds good, but with a couple of caveats:
1. the 0% rate only applies to BTs up to £5000
2. can only BT up to 90% of credit limit

Still not a bad deal, but...

The T&Cs state that payments are allocated in this order:
1. balances (including interest) with a promotional rate
2. other interest and other charges
3. standard balances
4. cash balances

Does this mean that the handling fee can't be paid off straight away and will sit there racking up interest for the entire duration of the stooze?

YorkshireBoy

BindiBahji wrote:

Does this mean that the handling fee can't be paid off straight away and will sit there racking up interest for the entire duration of the stooze?

Certainly does seem that way.

You shouldn't be put off though. https://www.whatsthecost.com/stoozing.aspx says you'll make £91 in a 5% AER stooz pot over the (effective) 11 month period on a £4.5K stooz.

Even 17.9% APR on the £56.25 fee only adds a tenner, meaning you'll still make over £80 on the deal.

BindiBahji

BindiBahji wrote:

Does this mean that the handling fee can't be paid off straight away and will sit there racking up interest for the entire duration of the stooze?

It appears my fears were unfounded.

Mrs Bahji has now been approved for the card with a 6k CL, allowing a BT of the full 5k with a fee of 62.50. When phoning to activate and do the BT, the CS person indicated the fee would be added to the 0% promotional balance meaning that it won't need to be paid off until the end of the 12 month promotional period. :T