Barclaycard - adding a balance transfer to a card you use monthly

JesseJames_2

I have an offer on my Barclaycard (ex Egg) for a money transfer or a standard BT.

I wish to do the money transfer, but usually run about £500 on this card per month.

If I money transfer and want to continue using this card without interest being due, what can I do?

Is the following correct?

Pay off my monthly usage in full, plus pay the minimum on the statement.
Will that be enough to incur no interest?

20aday

From what I've read on the forum here on MSE if you have a Balance Transfer on a promotional rate and then make a purchase you'd be liable for the interest due on the whole amount.

Therefore you'd have to pay the bill in full each month to avoid it. Please don't quote me on that, though.

[Deleted User]

As above - if you don't clear the whole balance in full, then you'll be charged interest on your purchases.

MallyGirl

and the 'in full' includes the BT/MT amount.
Basically if you have a promo deal on reduced interest (or zero) then you are not going to pay it off in full. Your 'up to 56 days interest free' on purchases is dependant on paying off in full. If you do not pay in full then you will be hit with interest on every purchase from the day of purchase till your statement date, with trailing interest between that and payment date arriving on your next statement. Never mix normal purchases and 0% offers.

KRB2725

Sorry, I'm not doubting everyone here but I don't understand and I could possibly be in the same position as op soon.

According to my Barclaycard t&c's, when you make a payment, it allocates it to the highest interest first, followed by any promotional rate which is done in end date order.

Are you saying that if i had a £1000 bt, then made a purchase for £50, that I would have to pay the full £1050 in order not to attract interest?

If I paid £50 + the minimum payment for the bt, that I would lose the 0%? Would the interest be just for that month or the entire term?

Paul_1977

I did an £800 BT. I pay no interest on the first £800. Anything I spend over £800 I pay interest.

I only pay interest on amount past the £800.

For example, if the balance is £1000, I only pay interest on £200.

That's how I thought it worked anyway.

[Deleted User]

emmatthews wrote: »

Are you saying that if i had a £1000 bt, then made a purchase for £50, that I would have to pay the full £1050 in order not to attract interest?

If I paid £50 + the minimum payment for the bt, that I would lose the 0%? Would the interest be just for that month or the entire term?

Yes, you will pay interest on the purchases, because you have not paid the whole balance in full.

You don't lose the 0% on the BT either way.

Paul_1977 wrote: »

I did an £800 BT. I pay no interest on the first £800. Anything I spend over £800 I pay interest.

That's correct.

KRB2725

Perfect, I understand now, thanks very much.

JesseJames_2

I am still confused
I thought that the recent changes in the law catered for this scenario.

Payments to credit card debt are supposed to be allocated to the highest rated debt first regardless of when that debt was added.
I thought my scenario above covers that in that all interest bearing date was paid off per month.

Consider the following simple example.
Month one - £0 balance
Month two - £1000 balance or money transfer - statement - paid minimum
Month three - £500 purchases - statement - paid minimum plus £500 and any BT fee.

If that still incurs interest unless you pay the full balance, then what is the use in that recent law?
I thought that law was there for situations like this.
Can someone give an example when it works as intended?

[Deleted User]

Payments do always pay off the highest interest part of the balance.

But the 'up to 56 days interest free' bit only applies if you are clearing your entire balance in full each month. You can't just pay off the interest bearing part.

The regulations are there to stop interest bearing balances being stuck underneath a 0% balance and not cleared.

JesseJames_2

Thanks
Now I see I think.
So in month 5 if I do not make any purchases in month 4 or 5 then then there is no interest or trailing interest to pay. It is only the 0% BT still on the card.

The way I was considering using it, i.e. purchases every month - then that would incur interest every month.