Balance transfer

Universita1

Hi there, hope someone can help. I have two credit cards with a balance to clear. They both offer me a balance transfer, so I can swich debt to one another. At the moment I have done one balance transfer. I ve realized I need to spend £500 on one of the credit card, and I am following an advice that I have seen on this site which say: Never ever spend on a balance transfer card. Shall I do the transaction on the card where I've got the whole debt on or the one that my balance is £0? Or I complete the other balance transfer and spend the £500 after Does it make any difference? Thank you for your assistance:)

thenudeone

The reason the advice is: "never spend on a balance transfer card" is because you will pay interest on the purchases even if you pay the purchase balance in full every month.

Credit cards don't charge interest on purchases provided you always pay THE FULL STATEMENT BALANCE every month. If you have a BT at 0% you won't be paying the full statement balance; therefore you will be charged interest on purchases from the day of the transaction.

If you kept purchases on a separate card and paid it off in full, you wouldn't be charged interest on purchases.

If you're already continuing to spend on those cards with balances outstanding, you're already paying interest on purchases anyway, so it doesn't make much difference; but you can minimise the interest charged by paying off as much as you can of the purchases as soon as they appear on a statement. As soon as you pay the purchase amount off, the interest will stop.