0% Interest query

Nicoll

I don't know if anyone can advise me on this but I recently got a mint card which gives me 0% on balance transfers until January 2009 and 0% on purchases until June 2008.

My question is this, I have put £1000 on this card as a balance transfer and am planning to use it to buy Christmas presents. If I spend say £500 on it and then pay £500 off by June 2008 when the 0% offer runs out on purchases, where will the £500 be taken from. If it's just taken off the balance transfer I will pay interest on it from June, but if it was taken off the purchases I would still have £1000 on 0% until Jan 09. I don't want to stitch myself up.

Would it better for me to spend on my other card and then transfer that balance the I would have until January 09 on the whole balance? I am planning to pay off for the purchases by June anyway?

Hope this makes sense. Nic

Mozette

Other than Nationwide (I'm not aware of others at least), they will apply the payments in the way most beneficial to the card provider, not to you.

Phantom_Flan_Flinger

From their website -

We will apply payments we receive to your account in the following order:

1. Interest on special offers
2. Any other interest, fee or charges
3. Special offers shown on any statement
4. Purchases and balance transfers
5. Advances and and money transfers

All payments after the end of the introductory 0% on purchases will go on any outstanding balance transfer, so you will pay and continue to pay interest on your purchases until you clear the balance transfer.

There are threads in here stating that Mint (or the parent company RBS) take the balance transfer fee as a purchase, so you start getting charged interest on the BT fee immediately.

Maybe worth clarifying with Mint.

As with all these cards, with the exception of the Nationwide card mentioned above, you should only use the card for the BT and not for purchases. That is unless of course you plan to clear the debts before the appropriate offer dates end.

GeorgeUK

Nice work Phantom.

I was just going to say it is always better to do EITHER balance transfer OR purchases.
You've put a bit more meat on the bone than that.

Nicoll

Thanks everyone, I will just keep my balance transfer on this card then.