0% Bal Trans & 0% Purchases - A bit of help please!!!!

MoneyMac

Hi all

Trying to get my head around this. I have a new credit card 0% on Balance Transfer for 26 months and 0% on purchases for 12 months.

I have balance transferred across and i have divided this amount by 26 (for the 26 mth period) i will pay just the minimum payment required to the card and the rest put into my offset savings until the 26 month period is up then pay it in full therefore not incurring any interest. I'm fine with that part of it.

Now if i want to make purchases on the 12 month 0% on purchases part of the card, what happens? Do i do the same and divide the total purchases by 12 (for the 12 mth period) and pay the minimum payment due (which will obviously combine with the balance transfer portion) and put the rest into the offset, but make sure i pay the full total of the purchases just before the 12 month period is up as to not incurr any interest ? I will obviously still be left with a balance from the balance transfer portion for the rest of the time. Is this a good idea as i hear people say don't balance transfer and purchase on the same card, but surely that's only if it has a 0% for BT but normal apr for purchases, is this correct.

Many thanks

leeroy2009

whats the purchase rate and whats the balance transfer rate?

MoneyMac

Purchase rate is 0% for 12 months and Balance Transfer rate is 0% for 26 months

leeroy2009

sory, what are the rates when the 0% offers end

MoneyMac

19.9% on purchases after 12 months and then 19.9% on balance transfers after 26 months

leeroy2009

you will be totally fine in that case, make the min payments, and make sure the purchases are paid off after the 12 months, as both rates are the same, only issue might of been if one rate apr was higher then the other as any payments you would of made would of went to the higher apr first, but as both are 19% you are totally fine, I take it this is with nationwide?

MoneyMac

Thanks very much Leeroy2009 that has made it clear for me, and yes it is Nationwide!!

StuC75

Mixing deals is often a confusing time, and presents issues and concerns over how payments are applied..

The safest option is not to mix balances, failing that the statements should carry information as to how the balance is split - keeping track of these and a call to the card provider prior to the deal expiring should tell you what you then need to pay to safely clear it off..

Any reason why you couldnt just take it all as balance transfers? Since its all against the one Credit Limit?

MoneyMac

I have already balance transfered across and i want to make 2 quite large purchases (one a holiday deposit) so i thought i could use the 0% on purchases offer and make sure it is paid in full before the 12 months as Leeroy2009 suggests and so not affecting my balance transfer promotion for the 26 months, i have more than the balances in savings but i am very scrupulous about offsetting as much as i can into my morgage offset savings. I try everything i can to be as careful as poss but sometimes we all slip up without thinking (well i do anyway!!!)

leeroy2009

I got the same card as you, the cash back is also handy too!! im hammering the card for every purchase I make, while all my cash that I would normally spend is earning 5% interest in the flexdirect account (and I have 2 other flexdirects earning 5% on other cash), you just have to love it lol.

MoneyMac

I love your thinking Leeroy2009