Confused Over Balance Transfers

aliceg1989

Hi


I have credit card debt on two cards. One of my cards (MBNA) currently has a promotion on whereby I can shift my other credit on my Halifax card to my MBNA one and earn 0% interest on that balance transfer until December 2015. My question is, how does this work please?


Will I have to pay interest on my existing credit only?


Is it an idea to clear the whole balance on my MBNA card before doing this balance transfer?


Thank you

grumbler

aliceg1989 wrote: »

I have credit card debt on two cards. One of my cards (MBNA) currently has a promotion on whereby I can shift my other credit on my Halifax card to my MBNA one and earn 0% interest on that balance transfer until December 2015. My question is, how does this work please?

You call MBNA and ask them to transfer your balance from your Halifax card.
Most likely you can do this online too without calling.
MBNA transfer money to Halifax to pay off your Halifax CC balance.
Beware of possible trailing interest at Halifax.

As a side note, you pay interest to CC provider, not earn it.

Will I have to pay interest on my existing credit only?

Existing balance?
You will have two balances:

• old one at the original APR
• new one at 0% until Dec 2015

Is it an idea to clear the whole balance on my MBNA card before doing this balance transfer?

It's always a good idea to clear interest bearing balance if you can do this, but for the transfer this doesn't make any difference.

MSE article: Balance Transfer Credit Cards