Would I save money on this BT ?

CBU2004

Hi, I got accepted for an ASDA credit card, it has 0% on BT for 12 months, with a 2.9% fee.

My vanquis card has £950 balance, min payment is £42, interest is about £40ish. (39.9%APR, ouch, ASDA 19.9% whoo !)

So if I transfer the balance, it would cost me around £30.
Which I will then pay off in full at the end of September.

So is this working out or am I missing something ?

Cheers

zerog

Yes, 39.9% to 0% will obviously save you money.

The only time you really need to think about it is when you are transferring from 0% card to another 0% card.

grumbler

The transfer costs you about 3% one-off.
Not transferring costs you 2.84% each month.

If it is the next Sep when you want to pay the balance off, I don't see what the question is about.

If it is this Sep, I don't see any point in transferring the balance and paying it off that early.

CBU2004

grumbler wrote: »

The transfer costs you about 3% one-off.
Not transferring costs you 2.84% each month.

If it is the next Sep when you want to pay the balance off, I don't see what the question is about.

If it is this Sep, I don't see any point in transferring the balance and paying it off that early.

The transfer would cost £30 whereas the interest would be £40

grumbler

cbu2004 wrote: »

...the interest would be £40

£950*(1.399^(1/12)-1)=£27

CBU2004

grumbler wrote: »

£950*(1.399^(1/12)-1)=£27

What with a 39.9% apr ?
According to my statement estimated interest is £40

grumbler

CBU2004 wrote: »

What with a 39.9% apr ?

That's what 1.399 meant above.

1.399^(1/12)-1=2.84% - your monthly interest rate.