Two different rates on credit card. Which one will be transferred?

therustybullet

Hi,

I am thinking about carrying out a balance transfer to my Halifax credit card which already has a balance on it which is on a promotional rate of 5.3% for the duration of the balance. However, Halifax have sent me a new promotion for 0% for 9 months and then after that the normal variable rate of 9.95%. If I transfer the balance of another card to Halifax for the 9 months what will happen when I want to move it when the 0% runs out? Will Halifax keep the higher rate and transfer the low rate or will they transfer the high rate and keep the low rate?

How does it work in situations like this??

Thanks in advance.

glawster_2

At the end of the 9 months the rate will return to Hfx's standard APR. It works like this, lets say you have £1000 on 5.3% and £1000 at the promotional 0%.

If you do a balance transfer of £1000 BEFORE the end of the promotional 0% period, the £1000 on the 5.3% promo will be transferred off your card.


If you do a balance transfer of £1000 AFTER the end of the promotional 0% period, the £1000 on the 0% promo will have reverted to your standard rate (say 16.9% or whatever your standard bt rate is) so this will be transferred off your card.

Balance transfers are treated as payments so the highest interest is paid off first.

therustybullet

Brilliant, thanks for that.