0% Balance transfer payments

Ben8282

When taking a 0% balance transfer, the obvious thought would be to make just the minimum payment for the life of the transfer (and then pay off in full at the end) in order to take maximum advantage of the 0% offer.

I was just wondering how this looks from a credit report point of view. Are there any suggestions as to the amount (as a % of the transfer amount) which should be repaid each month to reduce the balance in order to both 'look good' to the original lender and to assist in future applications for 0% cards?

thenudeone

If you pay too much off too early it defeats the whole purpose, and the benefit reduces (because you've paid a balance transfer fee on the whole balance).

The CRAs often include information about promotional balances, so lenders can see whether you're paying normal rates or special rates.
They also report if you are only making the minimum payment each month. To avoid that flag, just pay £5 or so extra, after the normal payment has gone through.

Otherwise don't worry about it.

Curr946

Well if you plan to, and able to clear the balance before / as the BT offer ends. Take the balance divide balance by months.

Example 3k balance on 22 0% BT offer is £136.37 per month

Tixy

Curr946 wrote: »

Well if you plan to, and able to clear the balance before / as the BT offer ends. Take the balance divide balance by months.

Example 3k balance on 22 0% BT offer is £136.37 per month

Better sense financially to pay of just slightly more than the minimum each month and keep the remainder in a savings account earning interest.

Curr946

Tixy wrote: »

Better sense financially to pay of just slightly more than the minimum each month and keep the remainder in a savings account earning interest.

Well i guess you could make 50 bucks or so doing that