0% balance transfer con .... WARNING

ISCB

I'm currently in dispute with my Credit Card supplier as they have started charging interest on my credit card even though I clear the spending on the card each month.

I did a balance transfer on a 0% deal in March 2012, and a second one in August 2012. I then continued to use the C/C for purchases etc - making sure that each month I cleared all (at least) of the spending on the card.

I cleared the first 0% transfer in February (was due 1st March) and now just have (part of the) second transfer transfer on the card. I was still using the card for purchases etc and clearing (at least) the spending each month.

The bank have now started charging me interest on the card - they say that because I'm not clearing the entire balance on the card any purchases attract interest until they are paid. Normally a C/C payment is interest free until the payment due date.

I feel that this is a con by the bank as effectively an interest free transfer is not really interest free (as I'm now being charged interest on purchases immediately) - its certainly not clear in the conditions of the C/C (and I was told that what I was doing would ensure that I paid no interest).

I don't see any mention of this on the the Money Saving Expert site either (although I may have missed it). I think this should be flagged to people as its certainly not clear in the way these 0% deals are promoted ....

Cheers

Ian

grumbler

The transfer is interest free. The purchases are not now. Why is this a con? And why is this allegedly unclear in the T&C? You don't say what card it is, but usually it's made very clear even in the Summary Box: no interest on purchases if the statement balance is paid in full and in time.

Threads like this keep emerging started by people who simply fail to read the summary box for their card, let alone the T&C.

E.g. Asda Credit Card: Strong warning

ic

agreed its confusing, but how they work. you only get interest free on purchases between statements if the statement balance is paid off. so if you've a large 0% transfer sat there, that will be included in the statement balance and will also need to paid off in order to qualify for the interest free.

best thing you can do now is get another card for your purchases and use that, and leave your current card with on the 0% on it.

golden rule is use a card either for purchases or transfers - but not both.

sfax

Funny how people expect to get purchases on credit with an interest free period. This up to 56 days interest free period is a reward for paying off your balance in full every month. If you don't pay off your balance in full every month, you'll pay interest in most cases.

It's always clearly stated in the Ts and Cs. People just make assumptions like "in full" means "purchases only".

As per ic: don't mix purchases and balance transfers

learningaboutinsurance

sfax wrote: »

Funny how people expect to get purchases on credit with an interest free period. This up to 56 days interest free period is a reward for paying off your balance in full every month. If you don't pay off your balance in full every month, you'll pay interest in most cases.

It's always clearly stated in the Ts and Cs. People just make assumptions like "in full" means "purchases only".

As per ic: don't mix purchases and balance transfers

So what about the 16 month interest free purchase on Tesco CC, surely its interest free for 16 months so you will not need to clear the balance every month

Cornucopia

The only situation (now) when it's safe to mix BTs and purchases is when a card has a 0% period for both that is the same.

sfax

learningaboutinsurance wrote: »

So what about the 16 month interest free purchase on Tesco CC, surely its interest free for 16 months so you will not need to clear the balance every month

Not sure how this is relevant to a thread about mixing balance transfers and purchases. The point I made is about the standard up to 56 days interest free period that people don't understand.

Obviously if you have a card with an interest free promotion for balance transfers or purchases you won't be charged interest in the interest free period

Gizmo247

Two cards have always recommended for this style of usage. One for balance transfers and one for spending.

blitzboy

ISCB wrote: »

I think this should be flagged to people as its certainly not clear in the way these 0% deals are promoted ....

Yes it is, to those that read the Ts & Cs. In fact, it's usually in the summary box too so you don't even need to look as far as the Ts & Cs.

thenudeone

All cards work the same way, and someone complains here about exactly the same "problem" about once a day.

Read the terms before you sign.

If you can't be bothered to read the terms, don't complain when it doesn't turn out how you expected it.

Before you ask - No, I don't always read the small print, but the difference is that if I missunderstand how a financial product works, I accept it was my own fault instead of finding someone else to push the blame on to.

WHEN ARE PEOPLE GOING TO GROW UP AND ACCEPT THEIR RESPONIBILITIES?

It's NOT the card company's fault that you LIED when you signed (or ticked) a box stating that you understood and agreed to the terms and conditions. If you agree to them, you must have read them.

mat5664

thenudeone wrote: »

WHEN ARE PEOPLE GOING TO GROW UP AND ACCEPT THEIR RESPONIBILITIES?

If you are going to insult people, you could at least learn to spell.

I have had balance cards for years, yet was not aware of this rule until I read the thread. It was a perfectly reasonable question.