Balance transfers

Mlindars

Hi, I'm 20 years old and have a balance of £1900 on a credit card. I'm just been accepted for another credit card (barclaycard) with interest free on balance transfers for 9months. My credit limit on this new card is £1000. Question is like, if I transfer as much as I can onto my barclaycard and focus on paying off my MasterCard what happens when it comes to paying my barclaycard, like do I have to make minimum payment even during the interest free period? And what happens if the balance isn't paid off in nine months? If someone could get back to me I would be grateful

YorkshireBoy

Mlindars wrote: »

Question is like, if I transfer as much as I can onto my barclaycard and focus on paying off my MasterCard what happens when it comes to paying my barclaycard, like do I have to make minimum payment even during the interest free period?

Yes, of course you do. The need to make a monthly minimum payment is standard on all cards.

And what happens if the balance isn't paid off in nine months?

It will start to accrue interest at the standard rate, so make sure you either pay it it off beforehand or start looking for another BT card 6 weeks before the introductory period ends.

Cell

You will have to pay the minimum on both cards (at least).

This is the minimum payment condition for one variety of Barclaycard:

Minimum repayment

The highest of: 1. 2.25% of the amount you owe us on your monthly statement;
2. £5 (or the entire amount if less than £5);
3. any interest, account fees and default charges that have been added to your account since your last statement plus 1% of the remaining balance.

As you will be paying no interest then the minimum repayment will be 2.25% of the balance. The most you can transfer is 90% of the credit limit, so £900, plus the fee (usually around 3%).

So you would pay around £21 the first month, and a little less until the 9 months is up when the above provision would apply (could be 1 or 3 depending on your regular APR). You would then have to pay interest on the balance at your regular rate.

Mlindars

Thank you very much! Got it now.