Quick question regarding Capital One bal transfer

MartinLewisIsSound

I've just been accepted for the card discussed in this article:

www(dot)moneysupermarket.com/c/news/focus-on-new-0-percent-balance-transfer-card-for-average-credit-scores/0013585/

This is ideal for me with the way my credit rating is at the moment. I'll be transferring the full amount that I'm entitled to (not sure yet) to my HSBC current account and making a purchase with the whole balance.

This card is 0% on balance transfers until September 2012 and 34.94% thereafter.

My plan is then to pay a third of the full balance off at the end of June, a third of at the End of July and then the remaining third off at the end of August.

My question is - supposing I don't manage to pay the full balance by September (I'm going to assume it's the 1st September) - my next earliest payment would then be the end of September. I would then therefore be paying a 34.94% interest rate. Let's say the outstanding amount left to pay is £100 - would I be paying £134.94 and the card's settled - or would I be paying 34.94%% of the full balance (likely to be around £1000, so about £449 (i.e. remainging £100 + interest from the original balance))?

Thanks a lot in advance.

jon142

MartinLewisIsSound wrote: »

I've just been accepted for the card discussed in this article:

www(dot)moneysupermarket.com/c/news/focus-on-new-0-percent-balance-transfer-card-for-average-credit-scores/0013585/

This is ideal for me with the way my credit rating is at the moment. I'll be transferring the full amount that I'm entitled to (not sure yet) to my HSBC current account and making a purchase with the whole balance.

This card is 0% on balance transfers until September 2012 and 34.94% thereafter.

My plan is then to pay a third of the full balance off at the end of June, a third of at the End of July and then the remaining third off at the end of August.

My question is - supposing I don't manage to pay the full balance by September (I'm going to assume it's the 1st September) - my next earliest payment would then be the end of September. I would then therefore be paying a 34.94% interest rate. Let's say the outstanding amount left to pay is £100 - would I be paying £134.94 and the card's settled - or would I be paying 34.94%% of the full balance (likely to be around £1000, so £449.40)?

Thanks a lot in advance.

With one of these card the limit is likely to be £100 - £300 generally nothing more. anything above prime APR (19.9% MAX) gives a very low limit to start. ( Vanquis ( £250 ), Aqua ( £300 ), Capitalone ( 100-300 )

MartinLewisIsSound

Are you sure it would be that low? The maximum is £1500.

jon142

i'm not 100% just 99% they always always always give a low limit to start you off.

You won't get above £300 i can almost gurantee it.

Tixy

My plan is then to pay a third of the full balance off at the end of June, a third of at the End of July and then the remaining third off at the end of August

You do understand that you'll need to pay at least the minimum payment every month?

I'll be transferring the full amount that I'm entitled to (not sure yet) to my HSBC current account and making a purchase with the whole balance.

You cannot do a transfer to your current account - you can only do a transfer to another credit card with an existing balance.

supposing I don't manage to pay the full balance by September (I'm going to assume it's the 1st September) - my next earliest payment would then be the end of September. I would then therefore be paying a 34.94% interest rate. Let's say the outstanding amount left to pay is £100 - would I be paying £134.94 and the card's settled - or would I be paying 34.94%% of the full balance (likely to be around £1000, so £449.40)?

You only pay interest on whatever balance is left at the end of the 0% promo period. Its based on the APR and accrued daily based on the daily baalnce.

MartinLewisIsSound

It's pretty useless to me at this point then. Thanks for all your answers.

YorkshireBoy

MartinLewisIsSound wrote: »

I'll be transferring the full amount that I'm entitled to (not sure yet) to my HSBC current account and making a purchase with the whole balance.

Does that card offer super balance transfers, ie from a current account as opposed to from a credit card?

would I be paying £134.94 and the card's settled - or would I be paying 34.94%% of the full balance (likely to be around £1000, so about £449 (i.e. remainging £100 + interest from the original balance))?

34.94% is an annual rate (APR stands for Annual Percentage Rate). The monthly rate will be around 2.5%, so a £100 balance carried for a month will cost you £2.50, plus a few pence residual interest the following month.

jon142

MartinLewisIsSound wrote: »

Are you sure it would be that low? The maximum is £1500.

Typically after you have been with them ( 6months - 12months ) the limit would go from £300 to £1200. hence the maximum " The maximum is £1500."

MartinLewisIsSound

Tixy wrote: »

You do understand that you'll need to pay at least the minimum payment every month?

Yes but surely a third of the full balance would be more than the minimum payment every month (assuming that the payment plan they propose exceeds the 0% promo period - so after September)? I won't have a problem paying that.

Tixy wrote: »

You cannot do a transfer to your current account - you can only do a transfer to another credit card with an existing balance.

Didn't realise this. Makes this card pretty useless to me as I'm not going to be making purchases at a 35% interest rate.

Thanks.

Tixy

MartinLewisIsSound wrote: »

Yes but surely a third of the full balance would be more than the minimum payment every month (assuming that the payment plan they propose exceeds the 0% promo period - so after September)? I won't have a problem paying that.

But if you get the card now you can't wait until June to pay off the first third. You have to make a payment in May, and in every single month.

MartinLewisIsSound

Ah right yer I see what you're saying. It's preferable to start payments at the end of June but end of April is fine, I got the impression when applying that there was a 'no payment' period for the first 2 months that's all.

How are the monthly payments calculated? Supposing the full balance of the card was £200 and I spent the full balance - how are the monthly payments then calculated and over what time period? I understand with a typical finance agreement, for example, you lend your money for the single purchase and then pay a steady amount over a set amount of months - but with credit cards the balance changes at the customer's discretion. There is no promo period on purchases btw, it's the full interest rate from the start.