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Difference between 0% transfer and 0% purchase
Frazzz2019
Posts: 5 Forumite
in Credit cards
Good afternoon.
I may sound really silly here but I am applying for a credit card. What is the difference between 0% balance transfers for 12 months and 0% on purchases for 3 months? Does this mean that if I transferred for example £2k from my other credit card, I wouldn’t pay any interest on this for 12 months but if I bought something new then I would pay interest after 3 months? What happens if I transfer and then buy something? Will I loose that original 12 months interest free because I’ve purchased something new?
I may sound really silly here but I am applying for a credit card. What is the difference between 0% balance transfers for 12 months and 0% on purchases for 3 months? Does this mean that if I transferred for example £2k from my other credit card, I wouldn’t pay any interest on this for 12 months but if I bought something new then I would pay interest after 3 months? What happens if I transfer and then buy something? Will I loose that original 12 months interest free because I’ve purchased something new?
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Comments
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A 0% Balance Transfer card is used to transfer credit card debt from one card to another. You will sometimes pay a fee for the transfer and the 0% promotion is for xx months.
A 0% Purchase promotion card means you can buy stuff at 0% APR for the duration of the promotion (again xx months).I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
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A transfer is for transferring a balance from another card. Purchases is for buying things.
If you only had a BT offer, then you would be charged interest on your purchases. A very small number of cards will waive the interest on these purchases if you clear them in full each month, but most will charge interest unless you cleared your entire balance.
Your BT would remain at 0%.0 -
I currently have a 0% interest free card which is running out next month. So if I transfer the balance on that, I won’t pay interest on that money for 12 months? As the card I want to transfer for says 0% on balance transfers for 12 months and 0% on purchases for 3 months0
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As long as you make at least minimum payments, you'll pay no interest for 12 months on the BT balance.0
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Yes, the debt will incur interest at 0% APR for the first 12 monthsFrazzz2019 wrote: »I currently have a 0% interest free card which is running out next month. So if I transfer the balance on that, I won’t pay interest on that money for 12 months?
And your purchases will be at 0% APR for the first 3 months only.Frazzz2019 wrote: »As the card I want to transfer for says 0% on balance transfers for 12 months and 0% on purchases for 3 months
Tip: It is best not to mix up and use two promotions simultaneously. In your example, just use as a BT card.
I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job0
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