Credit card purchase help?

[Deleted User]

Hello, my current credit card has a 22% interest rate on purchases. I have applied for a new one with 0% for purchases/balance transfers- however this won't arrive until next week.

I would like to make a purchase today if I can.... If I use my current credit card but then transfer the balance over to my new card next week, will I still be charged the interest rate? Or is it only if it gets to the statement date when I will be charged interest on my balance.?

Thank you.

bigadaj

It depends on whether you are carrying a balance on the card currently.

If you carry a balance currently then you will be charged interest, if you don't then you won't until the statement date.

redpete

Let's say you want to buy something for £1000, and that you will transfer the balance when you get your new card in a week's time, if you are carrying a balance then this will cost you one week's worth of 22% annual interest, something around £4.25.

So is it worth £4.25 to get it now instead of in a week's time?

bengal-stripe

redpete wrote: »

So is it worth £4.25 to get it now instead of in a week's time?

Don't forget, there is also a 'Balance Transfer Fee' (usually 3%) to pay, adding another 30 quid.

Revised question:

"So is it worth £34.25 to get it now instead of in a week's time?"

[Deleted User]

Thank you very much for your replies. Very helpful!