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

bouncydog1

Send an email to Barclaycard and ask. I think that payments will go against your purchases until the BT date expires. They are usually very helpful in my experience.

molerat

Payments will go against the purchases but you still pay interest from the date of purchase to the date of payment of that purchase because the whole card balance was not paid off.

JesseJames_2

OK, so this is what you would have done before that law was passed (paid it off before doing a BT), therefore I see no difference between then and now that this law actually addresses.

molerat

The law means you pay down the higher interest first thus reducing the amount of interest paid. Previously payments would have likely gone to earliest transactions so reducing the 0% whilst increasing the interest paying balance.

glentoran99

surely if payments are allocated to the highest interest part then say he did a £1000 balance transfer and made a £500 spend


They balance transfer is 0%


The £500 is say 18%


so he pays £500 which is allocated to the highest interest part, so that's paid off leaving only the 0%


so how is interest accrued?

molerat

If you do not pay off the card balance in full there is no interest free period so all purchases attract interest from the date of purchase until paid off. You can not get round this by purchasing and paying off straight away as payments will go against statemented transactions first.

JesseJames_2

OK, I think I got you.

So, in my hypothetical example above

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. (plus any interest)

Month three - interest will accrue from date of purchase until statement date.
Month four - interest will occur from month three statement date until paid off.
Month five - assuming only purchases were made in month three then no further interest will accrue, as the purchases and trailing interest will be paid off first leaving the BT only.


But in answer to my original question, I cannot use this for purchases every month concurrently with a BT on it, as it will amass interest continually.

20aday

JesseJames wrote: »

OK, I think I got you.

So, in my hypothetical example above

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. (plus any interest)

Month three - interest will accrue from date of purchase until statement date.
Month four - interest will occur from month three statement date until paid off.
Month five - assuming only purchases were made in month three then no further interest will accrue, as the purchases and trailing interest will be paid off first leaving the BT only.


But in answer to my original question, I cannot use this for purchases every month concurrently with a BT on it, as it will amass interest continually.

BIB: in answer to your original question then no, you'd be wise not to mix purchases and balance transfers on the same card as you'll amass interest until the balance is cleared.

If you feel you're in a position to open another card elsewhere for your £500 monthly spend then it might be worth having a look at cards that offer rewards i.e Santander 123?