Cash Transfer 0% period ends; how is interest incurred on outstanding balance ?

demonted

With no additional spending, just the balance transfer.

At the end of a Credit Cards 0% Cash Tranfer offer, transferred directly into a bank Account, does any remaining balance incur interest at the standard rate on the original amount transfered or is the interest incurred on the current/remaining outstanding balance ?

YorkshireBoy

Interest accrues daily on that days closing balance.

Interest is not deferred, as it is with some store card and BNPL products for example.

demonted

So, if I understand correctly;

Cash Tranfer of £5000 @ 0% interest for 24 months

24 months 0% period ends but £2000 still remains outstanding, so the interest is calculated on the remaining outstanding balance of £2000 ?


Reason I ask; on one occassion I bought an item for £600 on my Credit Card and I incorrectly adjusted my repayment, thus I was £60 short of clearing my balance within the billing period, therefore, I was charged interest on the whole purchase amount of £600 during the following month, although only £60 was outstanding.

Barclaycard stated that interest is incurred on the initial balance until cleared.

[Deleted User]

In the example you give, you are still paying interest on a daily basis on the amount you have outstanding each day. That is the same as what will happen when your promo period is up.

bigadaj

demonted wrote: »

So, if I understand correctly;

Cash Tranfer of £5000 @ 0% interest for 24 months

24 months 0% period ends but £2000 still remains outstanding, so the interest is calculated on the remaining outstanding balance of £2000 ?


Reason I ask; on one occassion I bought an item for £600 on my Credit Card and I incorrectly adjusted my repayment, thus I was £60 short of clearing my balance within the billing period, therefore, I was charged interest on the whole purchase amount of £600 during the following month, although only £60 was outstanding.

Barclaycard stated that interest is incurred on the initial balance until cleared.

Purchase is different to balance transfer.

If you purchase something on a credit card interest is charged and then waived if paid in full that month, if not then interest is charged on the whole balance even if you pay off virtually all of it.

The following month you then incur soem trailing interest on the interest charged and will then nit be charged again if balance is paid in full going forward.

In your example with a balance transfer then you get charged interest on the outstanding balance as it is when the promo period ends.

demonted

Ok, thanks

Thanks for everyone's input to help me understand.