Balance transfer after credit card is paid

g1ose

Hi All

Bit of a strange question but say for example I wanted to do a balance transfer from an existing card to a new one I would be applying for.
What are the average (if something exists) turnaround for new credit card applications?
And assuming its fairly long (4 weeks +)
What happens if my auto credit card payment pays the credit cards balance before the balance transfer?

So to explain in another way
Day 1 credit card application for £5k tnsfr
Day 10 Credit card payment due £5k
Day 10 Debit card transfers £5k to credit card
Day 20 new card tries to complete balance transfer of £5k from a card with a balance of £0
?

Apologies if this is a silly question.
ta

grumbler

Like any extra payment, a balance transfer can put a CC into credit.
Typically, this is against the T&C and the CC provider can insist on returning the money back to the source it came from, but there can be some peculiarities. If the money is returned the other CC provider may refuse to refund the BT fee.

g1ose

Thanks for the information.

So with this in mind, if I were to instead not pay off the balance on day 10 from my bank account (well only the minimum) would that then mean I would be charged a daily interest rate on the balance until day 20?
10 days on 19% (0.052% daily equiv= £2.60) £26? or do they calculate it differently?

grumbler

g1ose wrote: »

So with this in mind, if I were to instead not pay off the balance on day 10 from my bank account (well only the minimum) would that then mean I would be charged a daily interest rate on the balance until day 20?

Yes.

10 days on 19% (0.052% daily equiv= £2.60) £26? or do they calculate it differently?

Yes, but the number of days depends on what sort of balance it is. If it wasn't a promotional balance then the interest is calculated on the daily basis from the date of the debit transaction(s), not from the due date.

For a promotional balance the interest kicks in from the day 0% ends, and your calculation is correct for the extra 10-days' interest.

Sharon87

To be honest I've never had a balance transfer take longer than a week to go through, so shouldn't be much of an issue.

And if you do go into credit just inform your credit card company that your DD went through after you made a balance transfer. I accidentally done the same balance transfer twice to pay off a card (just over £200) and they just refunded it back to my current account!

MadMat

Or do a balance transfer for balance less next minimum payment. and let the DD go through . .

g1ose

Thanks for your help all.

I am about to apply for a new cc with balance transfer so was thinking even if the balance transfer was quick the application maybe slower and take longer than the time I have until its taken from my bank!