Barclaycard 11% cashback application problem

emeraldbugle

Well, I've just had a text to say I've been approved, my card will be with me in 7 days. ( I applied on the 17th).

Wonder how soon the card will come.....

Tirian

Haha ... further confirmation of lack of co-ordination in this process. Just received a text message congratulating me for being accepted, and stating that my card "should arrive within 7 working days".

Guess I can't complain too much that they're faster than they know!

bigpat

Well, I've just got off the phone with them and got a very pleasant chap who confirmed that I *am* eligible for the 11% cashback on spend up to 31st Dec. And with 20 months interest free period on balance transfers to boot.

Now I need some advice please!

We're taking a trip to New York at Easter and have already paid for the flights. We haven't booked the hotel yet but we're likely to do so in the next week or two. I'm a little confused by the 11% cashback on all "spend" and the 20 months interest free on balance transfers.

• If I pay for the hotel (approx £1800) on my new Barclaycard, then I will get back 11% of that in the Jan statement. Fair enough. But does that mean that I will then NOT get 20 months interest free?
• If on the other hand I pay for the hotel using my Amex cashback card and then balance transfer across to Barclaycard, I'll get 20 months interest free, but presumably I won't then get 11% cashback.

Is that right? I'm guessing the balance transfer from another card does not count as "spend". So, which is the best way to approach it?

Also, we've been saving hard for ages for this trip and reckon we'll have about £1000 spending money too. Is there some way to maximise this using either the cashback or interest free deal?

Thanks.

lisyloo

then I will get back 11% of that in the Jan statement

No, not on all of it. There's a limit of £100 cashback that equates to £909, but you'll get the max.

But does that mean that I will then NOT get 20 months interest free?

no, the offer is cashback AND 0% on balance transfers.

but presumably I won't then get 11% cashback.

err no. I have no idea where you have got the idea that it's one OR the other. It's both.

I'm guessing the balance transfer from another card does not count as "spend".

Right. You cannot withdraw cash or balance tranfer to get ecashback, you have to "spend" it on goods and services.

So, which is the best way to approach it?

Which did you want? If you can borrow for less than 11% over 20 months (or have savings) then the cashback is better.

Also, we've been saving hard for ages for this trip and reckon we'll have about £1000 spending money too. Is there some way to maximise this using either the cashback or interest free deal?

Cahback stop at £100 so that is the max.
If you're spending in New York then you really want to get a 0% commission card for spending overseas, so you need a different card for that.

Greentea

Hi Bigpat

From what i remember there is only 3 months 0% on purchases. The 20 months interest free is only balance transfers.

You need to work out what's best for you. You will get £100 cash back in Jan if you spend £1000 on the card. but you need to have this paid off in 3 months otherwise you will start paying interest.

On the other hand you could pay with you AMEX receive (£18 if you're getting 1%) and use the balance transfer for the 20 months, there is a 2.6% charge for this. Dont forget to be eligible for the £100 cash back you still need to do a minimum £100 balance transfer.

This is what I plan to do, put a big spend on the card next week and get £100 cash back, pay off the balance, then in January do a large balance transfer for the rest of the period. There is a cut off point mid Jan for balance transfers i was told.

hope this helps

lisyloo

Anyone know if there would be interest on the BT fee until it's paid off in full? or is this so small it's not worth worrying about?

bigpat

lisyloo wrote: »

No, not on all of it. There's a limit of £100 cashback that equates to £909, but you'll get the max.

Sorry, yes I knew that but was getting carried away for a minute!

lisyloo wrote: »

no, the offer is cashback AND 0% on balance transfers.



err no. I have no idea where you have got the idea that it's one OR the other. It's both.

I may not have explained myself very well. So if I spend £1800 and get the maximum £100 cashback, then I also still get 20 month interest free on the remaining £1700?

lisyloo wrote: »

Right. You cannot withdraw cash or balance tranfer to get ecashback, you have to "spend" it on goods and services.

OK, that's clear. No cashback on the balance transfer (but still cashback on anything else I spend on it before 31st Dec.

lisyloo wrote: »

If you're spending in New York then you really want to get a 0% commission card for spending overseas, so you need a different card for that.

Yes, I agree I need to look into the best card for New York. Something like FairFx maybe?

bigpat

I was going to post this as an Excel attachment but maybe someone can still check my calculations.

Option 1.
Pay £1800 on Amex
1% cashback = £18 (but not credited to account yet)
Balance transfer £1800 to Barclaycard
Add 2.6% fee. Total balance now = £1846.80
Interest free over 20 months = £92.34 per month
Net cost over 20 months = £1828.80 (counting £18 cashback)

Option 2
Pay £1800 on Barclaycard
Cashback = £100 in Jan
Balance = £1700
Interest free over remaining 19 months = £89.47 per month
Net cost over 20 months = £1700 (counting £100 cashback)

Therefore option 2 is going to save me £128.80 over 20 months.

Any glaring errors there?

lisyloo

So if I spend £1800 and get the maximum £100 cashback, then I also still get 20 month interest free on the remaining £1700?

No, there is only 3 months at 0% for purchses.
The money you spend on the hotel is a purchase/spend and not a balance transfer.

but still cashback on anything else I spend on it before 31st Dec.

Up to £909 spend and £100 cashback yes.

Yes, I agree I need to look into the best card for New York. Something like FairFx maybe?

Halifax Clarity or Post Office would be good choices. I don't know about FairFx, haven't heard of it before.

lisyloo

Any glaring errors there?

You don't get 20 months at 0% on purchases in option 2.
It's 3 months on purchases, 20 months on balance transfers.

Note if you have savings there is very little money to be made by "stoozing" (borrowing money at 0%).
That beacuse savings rates are low, you also may need to pay income tax on interest and fees are 2.6%.
You may make a little money by doing balance transfers but very little.
The real attraction here is the cashback, unless you need to borrow (which it sounds like you don't).