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Interest charges on a balance transfer card
Lioness_Twinkletoes
Posts: 1,573 Forumite
in Credit cards
Hi
Settle a dispute for me?
Friend had a Barclaycard that has a 0% balance transfer deal till 2021 and a purchase 0% deal till July of this year. As the purchase deal was expiring they secued another credit card with a 0% balance transfer and transferred the whole purchase balance. This left a balance of £600 still at 0%.
They have spent a tenner on the card and I think that they will now be charged interest on the whole balance. They think they'll be charged interest on the £10 they spent. Who is right?
Settle a dispute for me?
Friend had a Barclaycard that has a 0% balance transfer deal till 2021 and a purchase 0% deal till July of this year. As the purchase deal was expiring they secued another credit card with a 0% balance transfer and transferred the whole purchase balance. This left a balance of £600 still at 0%.
They have spent a tenner on the card and I think that they will now be charged interest on the whole balance. They think they'll be charged interest on the £10 they spent. Who is right?
0
Comments
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Normally it's interest on the purchase from the date of the purchase. The rest of it is already being charged interest at 0%.I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
You don't have to be the best -
Just be better than you were yesterday.0 -
Barclaycard payment hierarchy pays off the first ending promotion so anything left will continue at the promotional 0% rate. As the card is not being paid off in full all purchases, and only the purchases, will be charged interest from the date of transaction0
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and as your pay interest from the transaction date, pay it off as soon as you can. Today even. Don't wait for the statement0
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Your friend is right. The purchase balance and the balance transfer balance are separate. You should be able to find this on the statement under the rates section0
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Purchase pots and balance transfer pots are usually separate and interest is worked or separately.
So long as the £10 spend is covered along with the minimum for the balance transfer balance then you!!!8217;ll be fine0 -
and as your pay interest from the transaction date, pay it off as soon as you can. Today even. Don't wait for the statement
No.. pay just AFTER the statement is generated but don't wait for the payment due date.
£10 send before the statement date will be applied to the existing statemented (promo) balances first.0 -
Thanks to everyone that took the time to reply.0
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