Pay off balance on old card or Balance transfer onto new 0% card?

bhay

Hi, I have a balance of £500 on a 34.9% Capital One credit card. I applied for a Barclaycard 12 months 0% interest free balance transfer card and was successful in getting it. The Barclaycard has an introductory 6 months 0% on purchases. Im not sure if I should just pay off the £500 on my capital one card in 4 weeks and use the Barclaycard for 0% spending or transfer the £500 balance to the barclaycard and pay it off without using it for spending whilst repaying. Please help.

Many thanks

[Deleted User]

Better to pay it off rather than incur a fee on a BT. [STRIKE]Though it doesn't look as if you have a BT offer in any case, from what you've
posted.[/STRIKE]


Edit: missed that there was a BT offer as well as purchases.

MrJester

bhay wrote: »

Hi, I have a balance of £500 on a 34.9% Capital One credit card. I applied for a Barclaycard 12 months 0% interest free balance transfer card and was successful in getting it. The Barclaycard has an introductory 6 months 0% on purchases. Im not sure if I should just pay off the £500 on my capital one card in 4 weeks and use the Barclaycard for 0% spending or transfer the £500 balance to the barclaycard and pay it off without using it for spending whilst repaying. Please help.

Many thanks

So just to clarify the Barclaycard has a 12 moonth 0% on BT'ers aswell as 6 month 0% on purchases?

The obvious thing to do to is yes transfer the balance off the Capital One, as you are being charged interest on it (based on the info you provided), then pay it off within 12 months.

Depends how much max credit you have on the Barclaycard, you could use it for purchases too within the 6 months.. but obviously have to pay off any purchases within the 6 months.
But remember, do you need to use it for purchases? Is there other benefits to spending on the card?

Priority here is to not be in debt. get rid of the £500, and doing it interest free is the way to do that.

bhay

What it says in the letter:- You'll still benefit from our new introductory rate on purchases - 0% interest for 6 months when you open your account. And you'll also get 0% interest on balance transfers for 12 months, as long as you transfer the balances within 60 days of you opening your account. Theres a 2% handling fee for balance transfers.

Alexd52

bhay wrote: »

What it says in the letter:- You'll still benefit from our new introductory rate on purchases - 0% interest for 6 months when you open your account. And you'll also get 0% interest on balance transfers for 12 months, as long as you transfer the balances within 60 days of you opening your account. Theres a 2% handling fee for balance transfers.

If you are planning to pay the £500 off over 12 months, then the 2% BT fee is a considerable saving on the interest payments.

If you are going to spend as well as BT, as previously pointed out, you need to ensure that the purchases are paid off before the 6 months runs out to avoid unnecessary interest.

It is usually simpler to avoid mixing purchases and BT's on the same card