BT Question-How it works

Legacy_user

Good afternoon,

Recently I made a balance transfer to a First direct credit card 0% for 27 months. My questions are the following:

1) I have some limit spare after the balance transfer so if I make let's say for example 20£ purchase and the minimum payment is 15£...how much do I have to pay in order to not be charged interest? My thought is if I pay 20£ this covers the minimum payment requirement and the whole amount goes for the purchase due to the fact that the most expensive debt is being paid off first...so I won't be charged any interest. Am I right?

2) If I make the purchase and the payment before the next statement is produced what happens then? For example: My statement is being produced every 10th of each month. I make the purchase on the 12th of the month for 20£ and at the 14th of the month I pay manually 20£. What happens then? Will this purchase go to the next statement or not because I paid before the production of the statement?

Thank you in advance

Dobbibill

If you have a BT on a card and then use it for purchases, you will minimise the interest by paying it as soon as it hits the statement.

If you pay it off too soon it will go off your BT, if you pay it off too late ie a few days after it has been on your statement then you will incur interest, albeit minimal.

Do you not have a different CC to put purchases on, instead of mixing it with a BT?

System

Thank you for your answer! Yes I have a barclaycard with 0% on purchases for 12 months. I just wanted to know if using the card only for paying the balance transfer (thus paying only the minimum) is being seen as a negative sign by potential feature lenders. What do you think?

Dobbibill wrote: »

If you have a BT on a card and then use it for purchases, you will minimise the interest by paying it as soon as it hits the statement.

If you pay it off too soon it will go off your BT, if you pay it off too late ie a few days after it has been on your statement then you will incur interest, albeit minimal.

Do you not have a different CC to put purchases on, instead of mixing it with a BT?

Dobbibill

I wouldn't say it would look negatively, it just makes sense to use a different card, even more so if it's 12 months 0% on purchases.

Combining them only takes one slip up to then be paying interest unnecessarily.