Post Office Credit Card - Interest charged on 0% balance transfer

Shay_V

Hi,

Not sure if this is standard practice across other credit card companies. But the scenario is as follows:

Took out credit card last year to take advantage of lengthy 0% balance transfer. Have been making above the minimum payment due each month so not to get charged.

Used credit card last month whilst abroad and then paid off the new purchases balance by the following month plus an additional amount to contribute towards the existing balance from the balance transfer.

Received next months statement with an interest charge on the new purchases. Spoke to Post Office customer services and they have said this is due to the new purchases I have made and regardless of the fact that I cleared the new purchases in full by the next statement date as I have a balance transfer outstanding I have to clear this in full (even though the 0% rate is active) otherwise any new purchases I make will always be subject to an interest charge of 1.313% per month even if the total new purchases are cleared in full by the next statement due date.

Hopefully that above is clear, but more importantly has anyone else experienced this?

Regards

[Deleted User]

That is correct and all other cards operate this way. You may want to use a separate card for purchases to avoid this.

Fruit_and_Nut_Case

Shay_V wrote: »

Hi,

Not sure if this is standard practice across other credit card companies. But the scenario is as follows:

Took out credit card last year to take advantage of lengthy 0% balance transfer. Have been making above the minimum payment due each month so not to get charged.

Used credit card last month whilst abroad and then paid off the new purchases balance by the following month plus an additional amount to contribute towards the existing balance from the balance transfer.

Received next months statement with an interest charge on the new purchases. Spoke to Post Office customer services and they have said this is due to the new purchases I have made and regardless of the fact that I cleared the new purchases in full by the next statement date as I have a balance transfer outstanding I have to clear this in full (even though the 0% rate is active) otherwise any new purchases I make will always be subject to an interest charge of 1.313% per month even if the total new purchases are cleared in full by the next statement due date.

Hopefully that above is clear, but more importantly has anyone else experienced this?

Regards

I can't quite work out the exact timing of purchases, payments and statement from your post but these are crucial for cases like this. If you made a payment intended to cover the cost of the purchases - but made this before the said purchases appeared on a statement - then this payment would be put towards the existing BT. i.e. not what you intended.

chattychappy

Yep, standard practice.