Barclaycard queries

Clarissa88_2

Hi there,

I just got my Barclaycard today (22 months 0% for 2.9% + £40 refund). Really couldn't believe they gave me a whooping £9600 credit limit! (but with a higher interest rate of 19.9%).

I have a few queries:

a. In everything that I received, it seems to say 3.2% fee (instead of 2.9%), and no mention of £40. Is that normal and nothing to worry about?

b. Do they charge Interest on the Balance Transfer fees? Am I right that by the 3rd month (0% on Purchases), I would have cleared the Balance Transfer fee anyway, and would not have incur any interest on the fees?

Thanks for any advice!

skintdad

the fee is 3.2% but when the £40 is taken into consideration it becomes equivalent of 2.9%. have u activated the card yet? if not then ask about the £40 when you activate it. and also about if they charge interest on fees

Clarissa88_2

skintdad wrote: »

the fee is 3.2% but when the £40 is taken into consideration it becomes equivalent of 2.9%. have u activated the card yet? if not then ask about the £40 when you activate it. and also about if they charge interest on fees

Thanks for your reply Skintdad.

I don't think it's quite right - my understanding is that a 3.2% fee will be charged initially, but it will then be adjusted to 2.9%. Then, if you transfer >£3000, you get £40 back, isn't it so? (making it as best as 2.1% if you transfer exactly £3000)?

skintdad

no I got it off the barclaycard website

Clarissa88_2

I think it says here http://www.barclaycard.co.uk/personal/credit-cards/extended-interest-40, that it is 2.9% for everybody, and £40 refund for more than £3000 of balance transfers?

Actually my real question is, is it normal for me to receive such a literature (3.2%) in spite of clicking the link for 2.9% (and £40 refund)? Had anybody applied for this card, and what is their experience?

Thanks!

skintdad

no your reading it wrong

"Platinum Extended BT

0% interest on!balance transfers for 22 months from account opening (3.2% handling fee applies)
Plus, refund offer which reduces handling fee to equivalent of 2.9% for everyone (terms and conditions apply)"

which means the BT fee is 3.2% but if you transfer more than £3k then they will refund £40. when this is taken into consideration it makes the APR equivalent to 2.9%. apes now have to take all charges into consideration charged or refunded. eg payday loan apr say 500% but £75 set up fee added to charges for credit so actual apr would now be 2000%. in barclaycards case they are refunding some of the charges therefore the actual apr is reduced
£40!balance transfer fee refund!when you transfer a balance of £3000 or more (terms and conditions apply)

Clarissa88_2

I'm afraid I think you misunderstood it.

0% interest on balance transfers for 22 months from account opening (3.2% handling fee applies)
Plus, refund offer which reduces handling fee to equivalent of 2.9% for everyone (terms and conditions apply)
£40 balance transfer fee refund when you transfer a balance of £3000 or more (terms and conditions apply)

It is, as I said, 3.2% initially charged, then a refund of c. 0.3% to make it 2.9%, then if you tranfer £3000 or more, you get an additional £40 back, which can make it as LOW as 1.56% BT fee (if you transfer £3000 exactly).

My understanding is corroborated with MSE's article http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards.

1. Does anybody has any experience with the card, does your Product Literature that comes with the card mention about the 2.9% and/or the £40?

2. Does Barclaycard charge interest on the fees? If yes, are they 0% for the first 3 months - which due to the payment hierarchy, I would have finished paying off by the 3rd month?

Thanks!

skintdad

apologies. looks like your right. I was reading it as it was one discount not 2. why don't u just phone and ask them directly. they are probably trying to make it hard to understand how to claim the refunds so they make more money