Here's a question for you ....

FFP

Have tried looking for it as a thread, but no luck (although I'm sure it's on here somewhere !!)

So lets say I start up a HSBC credit card, 0% on BT until April 2008. The fee is 2% (minimum £5).

If I transfer £1000, that should leave an outstanding balance of £1020.

Do I get charged interest on the BT fee ? i.e interest on the £20 portion ?
HSBC women seemed to think so, but then again she didn't really know and didn't sound too sure when I asked her.

Thoughts ? Experiences ? I've never had this before on a BT and is seems to negate the incentive somewhat if true !!!

FFP

The plot thickens .....

Apparently (according to 2 employees !!!!) YOU WILL BE CHARGED INTEREST ON THE BALANCE TRANSFER FEE DURING THE 0% !!!!

It's like making a transfer, and then making a seperate purchase on the card !!!

Card now cut up ......

YorkshireBoy

FFP wrote:

Card now cut up ......

£3.18 a year would seem like a reasonable price to pay to get your debt on a long 0% deal, especially since you've already had the credit search.

Could I suggest you read the T&C's before you apply next time, because HSBC are not alone in having this condition.

Paul_Herring

Well they did say the BT was at 0% - they didn't mention anything about the fee being 0%.

And I suspect that the BT fee (being interest bearing) won't get paid off until the 0% balance has been paid off.

Egg were the first to start charging interest on the BT fee.

FFP

It wasn't in the T&C's.

The Credit Card department weren't even sure of it themselves !!!

Paul_Herring

YorkshireBoy wrote:

£3.18 a year would seem like a reasonable price to pay to get your debt on a long 0% deal, especially since you've already had the credit search.

I make the cost (assuming it's not paid until after the 0%) roughly £23.74. Still reasonable though.

FFP

The T&C's state that it will revert to the usual APR at the end of the period.
HSBC say you'll be charged interest on it from the start.

Only trying to save someone who doesn't look at these things as in depth as I do from potentially being charged when they thought it would be 0%

FFP

YorkshireBoy wrote:

£3.18 a year

Don't agree with that. Make it more like Paul's number.

The issue is that if someone is weighing up the transfer fee Vs keeping money in a high interest account for the period, the margins are a lot less when this interest is taken into account.

YorkshireBoy

FFP wrote:

Don't agree with that. Make it more like Paul's number.

£20 x 15.9% is £3.18 is it not? (EDIT: Unless the interest is rounded up? And even then, at £1 minimum interest, it still wouldn't be over £20).

Paul's figure would indicate an APR well in excess of 100%.

tom188

YB has quoted the amount of interest. (only for 12 months mind, not til apr 2007, although the difference is pence).
PH has quoted the amount of interest plus the fee.

FFP

Well if everyone is aware of it, then all's well.

I doubt people are.