Watch out for minimum payment

JQB_2

This isn't a question, only to warn others. I just switched a credit card balance to Barclaycard on their 0% until February 2019 balance transfer deal and their minimum monthly payment is nearly £50 more than the previous card company's. I've been doing this for over 10 years and this is the first time the minimum payment has changed so much.

Obviously there's no interest on the Barclaycard balance currently so the higher minimum payment will simply pay the balance off faster - no bad thing as long as you can afford it. And the benefit for the company is that they get more of your money before you transfer the balance to the next 0% interest card....

Martin doesn't mention to check the minimum payment percentage on his page "Balance Transfer Credit Cards" but it's worth checking as it may be more than you expected/budgeted for. Needless to say it's in very small print on the credit card terms and conditions.

[Deleted User]

But it's in the T's and C's - so all good

chattychappy

Presumably it's in the summary box too?

But you are right, it's something to bear in mind when doing BTs if youre tight. It can also diminish the value of a BT. People look at the fee and the term, but clearly if the minimum repayment is higher then you are on average borrowing less - so extracting poorer value than that from, say, a card with the same fee/term but a lower minimum.

Whatever the minimum, I'd always pay £1 more to avoid a "minimum payment" marker on the credit reference file.