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Can somebody check my understanding please?
Silaqui
Posts: 2,778 Forumite
in Credit cards
Hi
Sorry to ask what is probably an obvious question. I am having a clueless moment.
I have about £900 on a Lloyds CC at 19.9%, paying off at £120 a month. Card limit is 8000.
Had a car issue (on New Years day, sigh...) for which I had to put £3500 on my Santander CC at 18.9%. This is the only balance on that card.
I have a Balance Transfer offer for 0% for 18 months, 3% fee on my Lloyds card - I feel like I should be able to transfer the 3.5k onto the Lloyds to take advantage of the 0% offer - but something is telling me, will this 'trap' my 900 at the 19.9% while I pay off the 0%?
Or will my payments go towards the higher interest first even though its an older balance?
Thanks in advance!
Sorry to ask what is probably an obvious question. I am having a clueless moment.
I have about £900 on a Lloyds CC at 19.9%, paying off at £120 a month. Card limit is 8000.
Had a car issue (on New Years day, sigh...) for which I had to put £3500 on my Santander CC at 18.9%. This is the only balance on that card.
I have a Balance Transfer offer for 0% for 18 months, 3% fee on my Lloyds card - I feel like I should be able to transfer the 3.5k onto the Lloyds to take advantage of the 0% offer - but something is telling me, will this 'trap' my 900 at the 19.9% while I pay off the 0%?
Or will my payments go towards the higher interest first even though its an older balance?
Thanks in advance!
Ths signature is out of date because I'm too lazy to update it... 
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Comments
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The £900 will still incur interest. The repayments will go towards the higher-interest (£900) first.0
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Thank you
So without factoring in the fee (which I will have a proper look at later) I would be better off doing the transfer as my payments would be towards the balance with interest first.
Cheers
MelThs signature is out of date because I'm too lazy to update it...
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