How do interest rates on new offers effect your current balance?

phil7marshall

I have a credit card with £1k on at 0%, and another credit card with £500 on that im paying quite alot of interest on. I want to transfer the £500 on to the £1k card on an offer that means i'll pay 2.9% interest rate on the £500. My question is, will i also pay the 2.9% interest on all of my balance then, so 2.9% on £1.5k, or will the interest just be on the £500? And if so, when i make a payment of say £100 per month, would they take this £100 off the £500 first, or off the full balance and therefore i technically wouldnt be paying off the transferred £500 until the full balance is paid?
i hope ive explained that properly and somebody can help!! its quite hard to put into writing what i mean...

ceredigion

Read the T&Cs

redpete

It seems daft for a new transfer offer to affect the interest rate on an existing balance. I'm pretty sure that payments have to be taken off the most expensive part of the debt.

But best way to find out is to ask the lender. Simple question, "If I transfer a balance using the 2% offer would it affect the 0% interest on the current balance?"

[Deleted User]

A further BT doesn't affect any existing promos.

Payments will go to the highest rate balance.