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0% transfer and spending

PPPv2
Posts: 28 Forumite
in Credit cards
Transfer person 1 transfers £2200 odd quid and spends on it but will be paying that off the spends in full every time and paying approx £100 a month off the 0% transfer over money and person 2 using the card and paying off when due just a way of collecting club card points.
My question is when we pay the new spends off in full we wont be charged interest on that but what happens to the 0% balance transfer? does that get charged interest or still stay 0%? I hope we havent messed this up
My question is when we pay the new spends off in full we wont be charged interest on that but what happens to the 0% balance transfer? does that get charged interest or still stay 0%? I hope we havent messed this up
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Comments
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You need to check with your credit card company to be sure - but I can tell you how it works with mine:
Figures used are just for examples. Say you transfer £1000 at 0%. You then go out and spend £50. You pay off the £50 in full when the bill comes in... but in order to benefit from the interest free period on spending you need to clear the ENTIRE balance in full each month.
Clearly with a balance transfer you are not going to clear the entire balance so that means you do not get an interest free period on your spending. Your transfer balance will still be 0% and you won't be charged interest on that BUT you will be charged interest on the £50 spending based on the number of days that £50 was on your account.
Anything you pay over and above the £50 will go to reduce the transferred balance.0
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