Whether to balance transfer or not

pauldreed

I have just followed the site recomendations about getting a Halifax Purchase card - 15 months interest free for purchases, 3% fee for balance transfers.

I intend to pay back the minimum amount each month, to get the best out of the interest free period, so I will be using the card regularly for purchases.
I have negotiated the BT fee down to 2%, and am considering making a £5K BT from another card.

I have read somewhere that it is not a good idea to use the same card for BT's and to make ongoing purchases, something to do with how they apply the payments that you make, but cannot find it.

Can anyone remember this, or am I confusing it with something else?

Megatimbo

Hello pauldreed, in my experience its best just to balance transfer to a card only and then use another if you need to make a purchase abroad for example.

I think its to do with the allocation of payments you make to a card you see if you balance transfer and also spend on it the interest baring purchases get paid last so interest is paid from the start.thus wiping out most of benefits of 0%.

Its one of martins money mantras it will be under credit cards on the site but havent got the link at the moment.

Regards M

Megatimbo

Hello again the link is here

http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

Regards M

pauldreed

Thanks for that, I knew that I had seen it somewhere!