Taking a second balance transfer on existing BT card

Fluffy_Bunny

Apologies in advance if this is a stupid question, but I can't see an obvious answer to this anywhere.

If I have a credit card with an existing BT with £500 remaining and 5 months left on my current offer, and the company writes to me with an offer of 0% for another 12 months if I do another BT. If I take up that offer and transfer another £1200, do they start charging me interest after the 5 months are up?? I am thinking of the warnings they give about how they allocate payments.

So if I am currently paying £100 per month and on track to clear the first BT in time, and then I take the second BT offer and up my monthly payments to £200 per month for next 5 months, and then revert to £100 for remaining 7 months, will I avoid paying any interest at all?

I hope that makes sense. I am in a big muddle trying to understand it all.

Thanks!!

YorkshireBoy

Fluffy_Bunny wrote: »

So if I am currently paying £100 per month and on track to clear the first BT in time, and then I take the second BT offer and up my monthly payments to £200 per month for next 5 months, and then revert to £100 for remaining 7 months, will I avoid paying any interest at all?

Yes.

NB: In replying I'm making a rather large assumption that you have an MBNA card. I've had to do this because, despite a lengthy post, you've not said who the card provider is!

If you don't have an MBNA card, please disregard my answer above.

Fluffy_Bunny

Yes I do have an MBNA card. And they recently wrote to me telling me they are increasing my credit limit which is why I was considering a second transfer.

It seems a little to good to be true which always makes me sceptical...

Thanks for your reply!

thenudeone

You need to be VERY careful about when you pay to ensure that payments are allocated in your favour.

mbna allocate payments to offers which started first, not those which end soonest.

For example:
1/1/13 0% for 12 months -£1000 taken
1/2/13 0% of 9 months - £1000 taken
Balance at 30/10/13 - c. £1950
If you pay £1000 of on 30/10/13, they will allocate it to the January offer, so on 1/11/13 your balance will be £950, all being charged at the standard rate
If you are in any doubt, The best solution is to wait until 1 day after each offer ends, before paying it off, then you will be sure it will go against the right balance.