Credit Card Novice

RobbieDon

Hi Guys

I am a bit of a credit card novice and need some help.

I have a Barclaycard platinum card that has a 0% on purchases which finishes at the end of August 2012.

I have spend £2000 on it, and it has an Annual Purchase Rate of 18.90% and a Cash Interest Rate of 27.90%.

Does this mean I will start paying interest on this £2000 from September onwards or only if I miss repayments at the end of each month?

Thanks in advance.

Robbie

WelshRarebit

Unless the balance is paid off in full by the end of August they will start charging you. Suggest you try a balance transfer to another card if you don't think you can pay it all off in time.

YorkshireBoy

You need to clear the full balance by the end of August. Ask them for the specific 0% end date.

If you don't, and assuming it's all purchases spend, then you'll start to incur interest of around £29 per month from that date.

RobbieDon

Thanks for that.

So I'm best doing a balance transfer to a card that offers a lower APR and a free/cheap balance transfer?

YorkshireBoy

RobbieDon wrote: »

So I'm best doing a balance transfer to a card that offers a lower APR and a free/cheap balance transfer?

Yes, 0% for well over a year is possible nowadays subject to a circa 2-3% fee.

However, what if you can't get one? You always need a repayment plan when spending on credit cards...especially 0% cards due to their temptation. Maybe your circumstances have changed since you took out the Barclaycard? But if they haven't you should learn from this.

Hooloovoo

RobbieDon wrote: »

So I'm best doing a balance transfer to a card that offers a lower APR and a free/cheap balance transfer?

Not necessarily. The best course of action would be to pay off the card, unless you have the money in a savings account paying more in interest than the charge on the card (only really possible on a 0% offer).

Presumably you are in a position to pay off the card using the money you have been saving up every month during the interest-free period? You have been saving up ready to repay it, haven't you?

RobbieDon

I had but ended up with money coming out that was unexpected.

I wont be able to pay it off by August but September / October seems more realistic even if I have to pay an extra £29 per month.

YorkshireBoy

RobbieDon wrote: »

I wont be able to pay it off by August but September / October seems more realistic even if I have to pay an extra £29 per month.

Well at 3% it's going to cost you (ie increase your debt by) £60 to shift the debt elsewhere.

For that you get another 12m+ 0% interest.

Then again, if you have the £2K available, or even some of it, within a couple of months of the 0% ending you might be able to save yourself £30-40.

See what I mean about planning?

Fruit_and_Nut_Case

Welcome to MSE. :hello:

RobbieDon wrote: »

... it has an Annual Purchase Rate of 18.90% ...

FYI For future reference, that should be Annual Percentage Rate.