Bal Transfer to card used for purchases

ericpode

I recently took up a 0% balance transfer offer to my barclaycard which I have always used for purchases (and pay off in full each month).

I know that nowadays payments are always applied to the items with the highest rate of interest first, so I thought I would be OK just continuing to pay off just my purchases, and leaving the 0% item on the card until the offer runs out.

However, it's just occurred to me that cards do not charge interest on purchases provided you pay off the card IN FULL each month.

Does this mean that my planned strategy of just paying off the purchases amount each month will mean that will now I get charged interest for my purchases (because I'm not totally clearing off the card) ?

If yes, then I guess I'll have to stop using this card completely and use an alternate card for purchases in future.

scottishblondie

Yes, you would pay interest on the purchases.

ericpode

Thanks.

I think I'd better pay off all of the purchases on that card right away, so that they will stop accruing interest day by day.

No doubt the statement after next will have interest-on-interest, but that should get paid off in the following payment. After that hopefully the card will never attract any interest - if I correctly understand how it works.

On extra question - the BT fee gets added to the card but does it attract the same 0% interest rate as the transferred amount? If not then I guess it's agood idea to pay off the fee amount immediately.