How do credit card companies manage different interest rates?

michaelfarren3

Hi there,

This may be a silly question but I am looking for some advice on a new credit card I have opened.

My new card offers:
- 0% APR for 29 months on balance transfers
- 0% APR for 12 months on money transfers

I am looking to take advantage of both of these features, for example:
If I were to use a balance transfer for £1000 and a money transfer of £700, as long as I paid off at least £700 in the first 12 months, would I manage to avoid any interest fees?

Thanks in advance for any help!!

[Deleted User]

It depends on how your card allocates payments to concurrent promotions.

You'll find it explained in your terms and conditions.

DJDJDJDJ

As mentioned before different credit card providers manage this differently. T&C will describe it.A couple of things to remember:

- Cash withdrawal may be Interest free but may not be fee free. Typically, cards carry around 2.99% fee but yours could be different.
- Read the T&Cs to see how your payments are applied. Do they first apply to purchases or to cash advance? In your example, you spent 1000 and took out 700 cash advance. If in the first 12 months you paid 700 and you think your cash advance is paid off and only purchase are remaining which still have 6 more months of interest free period, you may be wrong. They may reduce your 1000 purchase balance to 300 and charge you interest on your cash advance of 700. All in the T&Cs. :-)