Halifax Clarity - New Deal for Existing Customers

alchap10

Hi Guys,

I've searched this forum for the answer but to no avail.

I've received a letter today from Halifax re my clarity card.

They are offering BT into current accounts and credit cards for 0% fee but at a interest rate of 2.95% for 12 months then the rate reverts to 12.92%.

To me this just seems a rewording of 0% interest free with a 2.95% interest rate - am I right?

If so then that is better than the current Virgin CC deal I am being offered at 5% BT fee so I will kindly take Halifax up on their offer.

But am I right............................?

Ben8282

Not exactly because the interest rate is slightly less than a 3% fee and if the balance of the BT were repaid/part-repaid within the 12 months, the interest charged will be less than a 3% fee.

alchap10

Ben8282 wrote: »

Not exactly because the interest rate is slightly less than a 3% fee and if the balance of the BT were repaid/part-repaid within the 12 months, the interest charged will be less than a 3% fee.

Thanks Ben8282. So if I understand your post correctly the Clarity deal is better than a 3% fee as long as you pay some or all of it off before the 12 months is up?

thenudeone

alchap10 wrote: »

Thanks Ben8282. So if I understand your post correctly the Clarity deal is better than a 3% fee as long as you pay some or all of it off before the 12 months is up?

Even if the interest rate was exactly the same as the fee (say 3%) it would still be a better deal because the interest is only charged on the daily balance (which goes down a little each month as you make the minimum payment) whereas the fee would be charged on 100% of the initial transferred amount.

Wish I'd kept my clarity card now:(

horngkai

wish they will offer me this deal!!! although I just reduced my credit limit from 6k to 2k!!!

luci

I've been offered this too. Although I don't need the money, it looks like a cheap way to get a loan for a year.

mitchb

My offer is 7.92% for 18 months, shame as I'd have taken advantage of cheaper rate

chexum

FWIW - this month's offer is 4.9% pa for 12 months (again, with no fee otherwise).

And they made a "keying error" with the 2.95% offer in December They started charging interest on the usual APR... But they fixed it as soon as I notified them (well, taking a few days, but fixing the real problem as far as I can see).

Did anyone have any similar issues or I was particularly "lucky" with them?

BTW, I suspect they made this offer because I used it quite extensively for travels/euro/dollar purchases online, so perhaps a ~2.95% pa is better for them while I'm *not* using this feature of the card