Does a payment count as a balance transfer?

danmanmj

If I apply for a new credit card that has 0% interest on purchases and says the following:

0% interest for 27 months on balance transfers from the date you open your account (1.99% fee applies). Transfers must be made within 60 days to benefit from the 0% offer

I want to confirm as I can't seem to see this in plain English anywhere I assume that when you pay the statement this isn't classified as a balance transfer and wouldn't incur a fee from the credit card provider? I appreciate that this particular offer is 0% for balance transfers for 27 months. But I wanted to know if there would be any other fees?

For reference, I was looking at this Barclay card.
Platinum 27 month 0% interest purchase and balance transfer offer

Thanks!

[Deleted User]

No - but a balance transfer counts as a payment.

Willing2Learn

I copied and pasted the definition of a Balance Transfer card from MBNA.

A balance transfer is where part or all of the debit balance (or debt) you owe to another lender is transferred from one credit or store card to another, usually to save on interest repayments.

Does that help you to understand how a balance transfer should be used?


Edit: And welcome to the forum

chattychappy

No, normal purchases won't attract a fee. If you have a 0% purchase offer AND a balance transfer offer, you can do both. When you balance transfer from an old card to your new card, then the new card sends money to the old card. From the point of view of the old card, it arrives as a payment. The new card will apply a balance transfer fee for doing this.

Back to purchases. All cards give you an interest free period on purchases if you pay off the card in full each month. If you have done a balance transfer, then you will not be paying the card in full. This means that the purchases will attract interest (there are some cards that work differently).

So if you are taking up the BT offer, ONLY use the same card for purchases if you really do have a purchase offer.

Chino

chattychappy wrote: »

So if you are taking up the BT offer, ONLY use the same card for purchases if you really do have a purchase offer.

The card referred to by the OP offers 0% interest on purchases for 27 months from the date the account is opened.
https://www.barclaycard.co.uk/personal/credit-cards/platinum-purchase-bt?WT.mc_id=C034L011N91&WT.srch=1&&msclkid=ab613a15445210fc162961a092ba3a06&gclid=CMmo8bO27N0CFZCMhQod9ewEGw&gclsrc=ds

"To keep your 0% rates
You'll need to stay within your credit limit and make at least your minimum payment on time each month. If you don't, your 0% rates will go up to your standard rate instead."

danmanmj

Thanks everyone. I got there in the end.