MSE News: Nationwide revamps credit card fees, but will other providers do the same?

grumbler

Well, you should have quoted the source as well if it was different from MSE article discussed here.

Regardless, if you were serious, not all allegedly 'unfair' charges can be claimed. Not to mention that it would be really unfair to claim them from NW who is the first to admit this and change for the better.

ollie31770

grumbler wrote: »

Well, you should have quoted the source as well if it was different from MSE article discussed here.

Regardless, if you were serious, not all allegedly 'unfair' charges can be claimed. Not to mention that it would be really unfair to claim them from NW who is the first to admit this and change for the better.

My goodness, you haven't taken well to a pretty innocuous question! I'll make sure not to ask any here in the future.

Also, just because someone rights a wrong first doesn't mean they didn't commit that wrong (so I don't see why you say it would be 'unfair' of me).

Thrugelmir

MSE's quote reads as you would expect it too. While the Telegraghs is a piece of poor journalism. No lender would say that.

Putting that aside makes you wonder what else is going to change. Is this the first steps of change. Ahead of the FCA's review of the credit card market. Chewed through mortgage lending and payday lenders. So one expects a sizable overhaul of the credit card market.

ollie31770

I can't post links but the Nationwide press release does say 'Nationwide feels this is unfair to borrowers'. Anyway, I'm very glad they're making these changes!

Herbalus

Pincher wrote: »

I thought they have to pay off the highest interest portion of the outstanding amount anyway.
...
It wasn't a big deal for one year BT deals, but with 3 year deals, the monthly minimum seriously erodes the balance you paid 3% transfer fee for. With the Barclaycard deal, I spend roughly the minimum, then pay it next month, so I can keep the 0% balance as high as possible. They are a bit sneaky, though, as they start charging interest the day after the statement date, so I need to be really on the ball to pay the minimum ASAP.

The whole point of the article is that purchases on non-Nationwide BT cards have no 0% interest period, because you haven't paid off the previous statement balance in full. If you're buying on a Barclaycard, on which you're paying the minimum, then your purchases are incurring interest from the day of purchase, not the statement date!

You only get a 0% interest period on purchases if you've paid off the previous months statement in full, and you haven't done that if you've got a balance transfer on it.

So, while they do pay off the highest interest items first, you pay interest on those items from the day of purchase until you've paid for them.

Nationwide are now rectifying that so you can have both BTs and purchases with a 0% period on the same card.

Pincher

Herbalus wrote: »

The whole point of the article is that purchases on non-Nationwide BT cards have no 0% interest period, because you haven't paid off the previous statement balance in full. If you're buying on a Barclaycard, on which you're paying the minimum, then your purchases are incurring interest from the day of purchase, not the statement date!

You only get a 0% interest period on purchases if you've paid off the previous months statement in full, and you haven't done that if you've got a balance transfer on it.

So, while they do pay off the highest interest items first, you pay interest on those items from the day of purchase until you've paid for them.

Nationwide are now rectifying that so you can have both BTs and purchases with a 0% period on the same card.

For stoozing, you actually want to have a balance to transfer to the next card, so reducing the balance by paying the minimum was always annoying. That's terribly obliging of Nationwide.

jamesd

Pincher wrote: »

For stoozing, you actually want to have a balance to transfer to the next card, so reducing the balance by paying the minimum was always annoying. That's terribly obliging of Nationwide.

Yes, it is. It lets you more easily spend a bit on the card to keep the BT balance unchanged, so it makes the BT a better deal than it appears because your average balance is higher.

You can do this with other BT cards to keep the BT balance up but since you're paying interest from the date of the transaction you need to time it to close to the payment date and verify that the order of payments will credit new purchases that don't appear on a transaction yet.

gkb_2

Can someone confirm I have understood this right.

I have a Select credit card which I do all my credit card spending on but pay it all off each month and NW have just offered me a 12 month 0% BT.
If I took this offer I would have a 0% balance and a purchases balance each month, if I continue to pay off the amount I spend in purchases in full on time each month will this mean as I understand it,

a. I will pay no interest at all on the purchases
b. The amount I have on the 0% balance will not reduce provided my purchases exceed the minimum payment each month

Have I got this right ? in which case thats very handy to use the 12 month BT deal.
Only issue I see is that the full balance on my statement each month will be the purchases plus the BT amount so I will have to manually pay the purchases amount rather than let the direct debit just do it automatically.

Ta

Consumerist

gkb wrote: »

Can someone confirm I have understood this right.

I have a Select credit card which I do all my credit card spending on but pay it all off each month and NW have just offered me a 12 month 0% BT.
If I took this offer I would have a 0% balance and a purchases balance each month, if I continue to pay off the amount I spend in purchases in full on time each month will this mean as I understand it,
a. I will pay no interest at all on the purchases
b. The amount I have on the 0% balance will not reduce provided my purchases exceed the minimum payment each month
Have I got this right ? in which case thats very handy to use the 12 month BT deal.
Only issue I see is that the full balance on my statement each month will be the purchases plus the BT amount so I will have to manually pay the purchases amount rather than let the direct debit just do it automatically.

That's the way I understand it.

Edit
And, of course, in your scenario, you will not pay any interest on the 0% BT either.