£3k on 0% bt card, can i spend on it too?

longwalks1

I have a 0% BT card with £3k debt on it that I pay off £200pcm direct debit, if one month I needed to make purchases to a value of say £400, when next statement was due, could I pay off the £400, along with the usual £200 dd, any pay no interest?


Hope that made sense

YorkshireBoy

Your purchases are only interest free (for up to, say, 56 days) if you've paid the last two statements in full...and you haven't done that.

unphased

Post removed by poster due to incorrect advice given. Apologies.

YorkshireBoy

unphased wrote: »

If you spend on a card you have specifically used to do a BT on at 0% interest you must pay off the entire balance in full on the pay-by date on the purchase period statement in order to pay no interest.

You won't be able to avoid interest at all, since you didn't pay the previous bill in full...as I've already said above!

If do make a purchase and don't pay the whole balance off in full, including the BT amount, you cancel the 0% deal and revert to the normal rate. So you will start paying interest on the BT.

Nonsense! The BT balance will remain at 0%, and you'll only incur interest on the purchases balance.

corbyboy

unphased wrote: »

If you spend on a card you have specifically used to do a BT on at 0% interest you must pay off the entire balance in full on the pay-by date on the purchase period statement in order to pay no interest. If do make a purchase and don't pay the whole balance off in full, including the BT amount, you cancel the 0% deal and revert to the normal rate. So you will start paying interest on the BT. This is where the credit card companies make their money, they rely on people making a mistake and doing what you plan to do. The rule for BTs is never spend on the BT card.

This is not correct. You can have interest free balance transfers mixed with interest-accruing purchases on the same card.

CLAPTON

unphased wrote: »

If you spend on a card you have specifically used to do a BT on at 0% interest you must pay off the entire balance in full on the pay-by date on the purchase period statement in order to pay no interest. If do make a purchase and don't pay the whole balance off in full, including the BT amount, you cancel the 0% deal and revert to the normal rate. So you will start paying interest on the BT. This is where the credit card companies make their money, they rely on people making a mistake and doing what you plan to do. The rule for BTs is never spend on the BT card.

this is not so

whilst it is less than optimal to spend (purchases) on a 0% BT deal, if you do so then you pay interest on the purchase amount but your 0% deal is not cancelled.


best to get two cards: keep the 0% BT deal for that deal only and use a separate card for purchases and pay in full and so pay no interest.

unphased

Oh. Sorry for the bum advice. I misunderstood. Oops.

So, if you have a deal that overlaps another deal how is this treated when you make payments? I mean, how do the cc company apportion payments?

sithemadmonkey

Depends on the T&Cs of the card. Usually they'll apply the payments to the lowest interest-bearing portion (i.e. the 0% BT) first, so you'll be paying interest on the full amount of the purchase until you've paid off the 0% bit. Have a read of the T&Cs though, as some (possibly Nationwide?) do it the other way round.

YorkshireBoy

sithemadmonkey wrote: »

Usually they'll apply the payments to the lowest interest-bearing portion (i.e. the 0% BT) first, so you'll be paying interest on the full amount of the purchase until you've paid off the 0% bit. Have a read of the T&Cs though, as some (possibly Nationwide?) do it the other way round.

You're nearly 3 years out of date!


Positive payment hierarchy 'rules' were introduced in January 2011, meaning payments have to be allocated to the highest interest rate element for all credit cards.

sithemadmonkey

Heh, shows how long it's been since I looked at terms for a credit card.

I'll just go and stand in the 'dinosaur' corner...