Idiots Guide to Balance Transfers

colette155de

Hello
Please could someone help me (in basic English, as this is all a bit foreign to me).
I am researching the best cards for balance transfers. I see that there are many cards, which stated 0% on balance transfers, however then in small writing it says something like 2.9% fee. What does this mean, does this mean there will be a 2.9% charge on the amount you transfer?
So, for example, what would the fee be for me to transfer £1500 onto a different card?
Finally, are there any cards around which have no fee?
Any help greatly appreciated,
Colette

YorkshireBoy

colette155de wrote: »

does this mean there will be a 2.9% charge on the amount you transfer?

Yes.

So, for example, what would the fee be for me to transfer £1500 onto a different card?

As a monetary amount?...or are you asking how to calculate it based on the 2 pieces of information you already have?

Get on your windows calculator and type:

1500
x
2.9
%

The figure returned is your fee.

Finally, are there any cards around which have no fee?

Not with 0% interest for x months, no.

colette155de

Thanks for your reply, so is i transfer £1500 and its a 2.9%fee then am i charged £43.50?

YorkshireBoy

Yes, meaning your new balance is £1,543.50

But you're presumably being charged interest on your current debt - of at least 1.5% per month, so you're saving money after 2 months or so.

colette155de

sorry, uve lost me now, its an m&s card with 0% purchases?

Jammi

2.9% is the admin charge that the card issuer levies for carrying out the transfer. In your example the fee to transfer £1500 would be £43.50 (1500x2.9%). The 0% interest will remain in place for the advertised duration as long as you make the minimum repayment on time every month. The credit card statement will tell you the minimum you should pay and the payment due date.

Most cards will charge a balance transfer fee. The few cards that don't charge a fee will not offer 0% interest. Halifax Clarity card will not charge a fee for balance transfers but will charge interest from the date that the transfer is made.

A good place to look at cards currently available and the fees they charge is the following website: http://www.moneysupermarket.com/credit-cards/.

YorkshireBoy

colette155de wrote: »

sorry, uve lost me now, its an m&s card with 0% purchases?

Presumably the 0% is about to expire?

You'll then drop onto interest at around 1.5% per month. The same applies...if it's 0% interest you'll recover your 2.9% BT fee in around 2 months.