Help with a 0% credit card?

Sweet_Girl_x

Hello, wondering if someone in the know can help. I have been trying to build my credit rating recently and managed to get to a better place. I have just applied and received a 0% interest balance transfer credit card. Could someone help.me with the following.

In the terms of my 35 month 0% it states
"Once your 0% term has ended, until you repay your transferred balance in full, you will incur interest on all your purchases at your purchase rate. This applies even if you repay your monthly spend in full each month."

What does that mean?

"Also, once your promotional period has ended, the remaining balance will incur interest at your purchase rate."

So does that mean for example, if I transfer a balance of 3000, and by the time the 0% is over I manage to pay off 2500, do I just start to pay interest on just the 500 left owing or the whole 3000, and do they backdate it for 35 months?!

One more question too, if I just transfer a balance (e.g 3000) at 0%, what is my minimum payment likely to be?

The highest of:
• £5.00 (or the full outstanding balance if it’s less than £5.00);
• 2.25% of your main balance plus any Instalment Plan payments due for that month;
or
• An amount equal to any interest, default fees or account maintenance fees that have
been added to your account since your last statement, plus 1.00% of the rest of your
main balance, plus any Instalment Plan payments due for that month. Default fees and
account maintenance fees will only be included if the % referred to above is 1%.

My main aim is to obviously pay chunks off it but it won't happen untiL January, so need to know for until then.

Thanks in advance
Natalie

[Deleted User]

Interest on the remaining balance.

And the minimum payment will be whatever the statement says

Lastly ignore you made up credit rating

[Deleted User]

The best advice is not to use the card for purchases, the min. payment would be 2.25% or £75 on a balance of £3000, the best plan is to pay off the full amount in 35 months if you don't you will only be charged interest on the remaining balance going forward.

Sweet_Girl_x

!!! wrote: »

Interest on the remaining balance.

Thanks for the info.

Sweet_Girl_x

venison wrote: »

The best advice is not to use the card for purchases, the min. payment would be 2.25% or £75 on a balance of £3000, the best plan is to pay off the full amount in 35 months if you don't you will only be charged interest on the remaining balance going forward.

Thank you for the advice. Why do you say not to use the card for purchases? Is this because it gets sticky with a balance transfer?

That makes sense, just until the end of the year I will be paying the minimum (even that £75 still chips off at my actual debt though, and not interest of any kind, am I right?) Then next year I would like to get it gone with big chunks

Craig1981

correct.

interest on the transfer will only start from the end of your promotional period... try not to mix purchases and balance transfers. it can be manageable, but too much hassle to keep on top of.

setup a Direct Debit for the minimum payments for the balance transfer. then next year when you want to make bigger chunks, either change DD to a set amount (making sure minimum is covered), or keep min payment in tact, and make manual "chunky" payments

MallyGirl

You only get the 'up to 56 days' interest free on purchases if you pay the balance off in full every month. If you are still holding the remains of a balance transfer on the card then you won't be paying in full so all purchases will incur interest from day of transaction. That is why you never mix balance transfers and purchases on the same card.

Mr_Underwriter

!!! wrote: »

Interest on the remaining balance.

And the minimum payment will be whatever the statement says

Lastly ignore you made up credit rating

Lastly ignore you made up credit rating

Always remember whilst your score/ rating etc itself is meaningless, it's designed to be indicative along with other variables of how your file is generally viewed by lenders.