Stupid question - transfer rate

enricogatty

Hello,

I feel a bit stupid for asking this, but here we go...

I have a credit card debt of £1300.

It's being charged at a rate of 1.3133%

I've applied for a 0% credit card but I've noticed it has a transfer rate of 3%.

Am I correct in thinking that I'm best to just leave the debt on the credit card and not transfer? Or is the transfer rate charged in a different way (I'm guessing it's not, but I just thought I'd check - apologies if this is the stupidest question ever).

miketaff1408

enricogatty wrote: »

Hello,

I feel a bit stupid for asking this, but here we go...

I have a credit card debt of £1300.

It's being charged at a rate of 1.3133%

You need to check the statement carefully - Are you sure that 1.3133% is your APR? It is an odd number for an APR and does sound like a MONTHLY percentage rate. ie. 1.3133% is charged on outstanding balances monthly, giving an apr of around 15-16%.

In which case the 3% transfer rate is the better option if you are not going to pay the balance off within the next few months.

But do check out your statement though first.

enricogatty

It's named as 'standard monthly rate'.

Annoyingly the credit card website is unavailable at the moment but I think I paid about £1.50 in charges last month...

miketaff1408

enricogatty wrote: »

It's named as 'standard monthly rate'.

Annoyingly the credit card website is unavailable at the moment but I think I paid about £1.50 in charges last month...

So you will be charged the 1.3133% EVERY month on your outstanding balance.

So if you dont intend to pay the CC off within the next three months, it will be cheaper for you in the long run to utilise the BT deal.

chattychappy

Yep and for the avoidance of doubt, the 3% isn't really a "rate". It s a one-off fee charged when you make the transfer.

enricogatty

Thanks very much!