Interest question purchases and balance transefer

theoofoof

Hi - can someone clarify something for me.

I have a 0% balance transfer of £1000 on and then purchases of £500 which are paid off (in full every month). Just noticed that Halifax are charging me interest on my purchases, because they're saying that, despite me paying the purchases off every month, I am not paying the card off in full.

They said that as long as there is an outstanding balance on the card, even if that balance is 0%, the purchases will still be charged interest.

Is this right?

[Deleted User]

That's correct.

theoofoof

Thanks. I will be sorting that out then.

Seems a bit cheeky to me because if there was no balance transfer and I paid off my purchases every month or if I had a balance transfer on it's own I would pay no interest at all. Or I could have two separate cards with the same bank and not get charged. But because they're both on the same card they can charge. Harsh.

Oh well. Lesson learned.

[Deleted User]

The general rule is to never spend on a BT card. Use a different card for purchases.

theoofoof

A rule I shall be abiding by from now on.

Dobbibill

yeh, they are right.

The golden rule is 'pay off your BALANCE in full to have the up to 56 days interest free on purchases'.

While there is a BT on the card this is not paying the balance in full.

As you say - lesson learned.