Barclaycard balence transfer to current account

Obi167

Hello,

Here is my situation... I have paid off and closed a number of credit cards and just have the one Barclaycard remaining. It has a credit limit of £3600 and a balance of about £1800.

I have now started receiving offers from them (hopefully a sign of improving credit). One such offer is '0% on transfers to your current account until 1st August 2014'

What i planned to do is to get the other £1800 transfered to my account and pay that straight back into the credit card, leaving me with the £1800 on a promotional rate. Hopefully paying off that amount but if not all be left with a smaller amount to pay off after the offer ends.

Can anyone see any problem with that working?

Tixy

Should work fine - although you probably can't transfer right up to your limit, usually its 90% or 95% of the limit (can't recall what bc is).

How much is the fee?
how does that compare to the APR on the existing balance and how much you wuold be likely to pay in interest in the 6/7months? obviously the fee is on the value of the whole transfer and the APR is calculated on the reducing daily balance so the saving may not be as large as it appears at first glance..

Obi167

fee is 1.9%, apr is 29.9! so the fee wouldnt even be a months interest!

My concern was is - will there be a penalty for not paying off all of the promotional rate - i.e you pay interest on the whole amount for the whole time - like some storecards do? (sorry if this is a stupid question - im a noob at this!)

Obi167

In the small print it does state that the higher interest gets paid off first, but it also includes this line - 'until you repay your transfered balance in full, you will incur interest on all your purchases at your standard purchase rate of 29.9%. this applies even if you pay your monthly spend in full each month' - could someone explain that line to me?

chopps

Obi167 wrote: »

In the small print it does state that the higher interest gets paid off first, but it also includes this line - 'until you repay your transfered balance in full, you will incur interest on all your purchases at your standard purchase rate of 29.9%. this applies even if you pay your monthly spend in full each month' - could someone explain that line to me?

This means that if you use your card to buy anything you will be charged interest straightaway on those outstanding purchases (until the balance transfer has been paid off in full) as opposed to the few weeks of 'free' interest you can benefit from if you were settling the bill in full every month.

chopps

Obi167 wrote: »

fee is 1.9%, apr is 29.9! so the fee wouldnt even be a months interest!

My concern was is - will there be a penalty for not paying off all of the promotional rate - i.e you pay interest on the whole amount for the whole time - like some storecards do? (sorry if this is a stupid question - im a noob at this!)

No, you will need to make the minimum payments each month and if you cannot repay the entire borrowed amount in full by 1 August then you will be charged the standard (high) rate of interest every subsequent month. Ideally try and settle it in full before 1 August but there is no penalty for making extra payments over the minimum each month as you have already paid the 2.9% fee up-front.

Obi167

Thanks for the help

grumbler

Obi167 wrote: »

Barclaycard balence transfer to current account

To transfer the balance to a current account you just send money from the current account to the CC (or pay the balance off with a debit card).

What you mean is either a money transfer to a current account or a balance ('overdraft') transfer from a current account.