Cash Transfer on a Card that already has a 0% balance on?

pinchez

Hi,
I've just had a good offer on my MBNA Card and would like to take advantage of it but I already have a Balance on it at 0% until March 2021.
So if I do a Money Transfer at 0% for 18 months (4% Fee) will this affect my current balance?
i.e. if do a money transfer of £2000 on my card which already has a 0% balance of £2000 on until March 2021 making total debt inc. transfer fee of £4080 and then proceed to bring this debt back down to £2000 by March 2021 and then clear the card before this new offer ends, will I pay any interest?
Thanks

Retired_Mortgage_Adviser

With two 0% offer balances with different end dates, this is how MBNA used to do it when I had a card few years ago. It was done differently from other providers. 

MBNA would apply any payment first to the balance that will eventually accrue the highest interest rate. All other cc companies I've used would allocate the payment to the shortest offer first.

Mind you, this might have changed since MBNA became part of the Llloyds Banking Group.

Alexd52

pinchez said:

Hi,
I've just had a good offer on my MBNA Card and would like to take advantage of it but I already have a Balance on it at 0% until March 2021.
So if I do a Money Transfer at 0% for 18 months (4% Fee) will this affect my current balance?
i.e. if do a money transfer of £2000 on my card which already has a 0% balance of £2000 on until March 2021 making total debt inc. transfer fee of £4080 and then proceed to bring this debt back down to £2000 by March 2021 and then clear the card before this new offer ends, will I pay any interest?
Thanks

In the example that you describe, i.e. both ending March 2021 and you clearing the full £4080 by then, no you will not pay interest

Sharon87

They normally pay off the balance that accrues the most interest first, so they're both on 0% for a period, but the cash one will usually be a higher interest rate, so your payments will go towards this one first. If they end on the same date there's no issue. If you can't pay it all off in the 0% deal then you can do another transfer to another card.

I have a Barclaycard with 5 different 0% balance transfers on! I've just paid off 1, so I have 4 to go, but won't be able to pay them all before they expire, so will be transferring them to one of my other cards in the weeks they're about to end.

wiseonesomeofthetime

What did MBNA say?

molerat

The new Lloyds MBNA treat BTs and MTs the same and will allocate towards the oldest first irrespective of the end date or interest rate at the end of offer.