Transfer Fee - interest?

Manors22

Hi, this should just be a quick post. I have for the first time carried out a balance transfer to an existing credit card. I was given 0% for 6 months with a 3% fee, which is fine for me,

My question is about the fee - do they typically charge interest on this, or is it part of my 0% offer? If they do, is the cash advance rate or purchases rate?

chattychappy

Often they do and in my experience it's the purchase rate. But as your first payment will typically wipe it out, the interest involved is peanuts.

YorkshireBoy

Manors22 wrote: »

My question is about the fee - do they typically charge interest on this, or is it part of my 0% offer?

If you say who the provider is you'll get a specific answer, rather than a "typical" one.

Manors22

Thank for your replies.

Lloyds TSB, Duo Avios.

YorkshireBoy

Manors22 wrote: »

Lloyds TSB, Duo Avios.

They used to be quite open on their website about charging interest on the fee (at your purchases rate), but that text disappeared a few months ago so I'd assume they no longer charge it.

Indeed, a google search for "lloyds "interest on the fee"" throws up only a few hits from late last year...nothing for this year, and nothing, as I said above, is returned for their own website.

Manors22

That being the case, if I made a payment of an amount enough to cover the fee, will that ensure I do not pay any further interest/charges? The transfer amount and the fee are the only things on the card. I'm not really clear on how credit card interest works as I have never paid any before!

gglaze

We seem to have several different threads going on about this same topic... have a look at my more detailed post about my Tesco card:

https://forums.moneysavingexpert.com/discussion/comment/60096985#Comment_60096985

I think the short answer is, it really depends on the particular card. I'm sure I have some cards where the fee is just added to the same balance with the promo rate - such as my Barclaycard. But apparently with Tesco it is possibly not. Sorry, no idea about Lloyds TSB.