Transferring to 0% balance - the mechanics

Silverbirch

Hi, sorry to ask a simple question but I know this is the best place for it with all the money gurus around! If I apply to transfer a balance to a new card with a 0% balance - does it automatically close the old one or can I keep that one for subsequent purchase? Thanks very much!

Paul_the_Painter

Your "old" card will remain open, and don't ignore the bill when it comes through, as chances are that you will have a small balance to pay off. The "new" credit card company doesn't communicate with the "old" one, they just send the amount that you said to.
So if your balance is say £2000, and you are on a monthly interest rate of 2%, you will have a bill from the "old" credit card company of anywhere between £0 and £40 depending on when the money arrives in relation to your statement date (and maybe a few pence the following month)

YorkshireBoy

Paul_the_Painter wrote: »

Your "old" card will remain open, and don't ignore the bill when it comes through, as chances are that you will have a small balance to pay off.

Excellent advice!

You'd be surprised the number of people on here who get caught out with that when carrying an interest bearing balance and either move house or forget to check their e-mails if they're set up for paperless billing.

Silverbirch

Thanks very much Paul and YorkshireBoy.