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Balance Transfer Fee - Added To Balance???
plurs
Posts: 4 Newbie
in Credit cards
Hi, I couldn't find an answer to this so just running it by. I'm doing a balance transfer from one of my cards to another to take advantage of 0% for 18 months.
If the limit on my card is £1000, and I transfer £1000, will the fees be added on top and take me over my limit and incur charges? Or should I be transfering the amount minus the fees so the total is under my balance? i.e transfer £970 + fees keeping me under my limit?
Just don't want to incur fee's for going over my balance... not quite sure how it all works... thanks
If the limit on my card is £1000, and I transfer £1000, will the fees be added on top and take me over my limit and incur charges? Or should I be transfering the amount minus the fees so the total is under my balance? i.e transfer £970 + fees keeping me under my limit?
Just don't want to incur fee's for going over my balance... not quite sure how it all works... thanks
0
Comments
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They're added to the balance so yes you need to allow for that. Many cards also stipulate a limit to the amount you can balance transfer, typically around 80-90% of the card limit (the fees don't count towards this lower limit afaik).
E.g. If you have a limit of £1000 and your BT limit is 90%, you can transfer £900 and the fees (say 3% so £27) will be added on top, resulting in a balance of £927.0 -
Ok thanks for the reply... I'll go trawling through the t&c's later to see if there is a transfer limit. Thanks for your help much appreciated.0
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OP It is total madness to balance transfer 100% of your limit (even if you could find that does it)
Always always leave yourself a cushion in case of an emergency.0 -
Just for argumnets sake I don't see how it's madness? If have £1200 on a high intrest card.. transfer £1000 (limit on 0% card) to the 0% card and pay off the remaining £200... then pay nothing monthly... and have the saftey cushion of the high intrest card if need be?
Complete opposite of madness if you ask me?0 -
But you have no cushion on the transfer card for any mistakes etc which could put you at risk of going over limit and the promo rate being withdrawn.0
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Just for argumnets sake I don't see how it's madness? If have £1200 on a high intrest card.. transfer £1000 (limit on 0% card) to the 0% card and pay off the remaining £200... then pay nothing monthly... and have the saftey cushion of the high intrest card if need be?
Complete opposite of madness if you ask me?
Your first post said you wanted to transfer £1000 on a card with a £1000 limit.
The post above makes a lot more sense.0
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