Transfer fee on balance transfers

HurdyGurdy

Experian has directed me to some pre-approved offers on balance transfers for my £4450 balance on my Lloyds credit card. 

The top two are both with Virgin. The first is 28 months with a 2.7% transfer fee. The second is 24 months with a 1.25% transfer fee. I am assuming that the second is the better option, as it has a lower transfer fee? I am currently paying between £200 and £250 a month to Lloyds, and would continue to pay these amount, so the balance should be paid off within the 24 months.

My question is - how is the transfer fee paid? Is this something I have to pay up front, or is it added to the balance outstanding on the Virgin card? If it's added to the balance, does that sum fall within the 0%, or will the normal interest rate of 21.9% apply to this amount from the beginning. 

[Deleted User]

It's added to the balance.  Check the terms of the card as to whether the fee will attract interest.

[Deleted User]

Normally on a BT card you transfer say £1000 and pay a fee of £12.50 (based on your example) which is added onto the balance. They do not attract interest on any BT card I have used but that is only 2 cards so it is possible someone else could charge interest, but seems unlikely. If they did, they would have to allocate the first payment to the fee as they have to do the highest interest sums first regardless so you would see very little interest. Being realistic, any provider that did that would lose business as people would use other cards.

femalemonarchfemalecanine

virgin just add your fee onto the balance, so if you transferred 1000 with a fee of 15, you balance would show as £1015 and would all be at 0% for the duration of the offer. 

maxximus75

If I do a balance transfer, I always pay the fee immediately when it posts to my account.... that way it's never an issue if it will attract any interest as I am just left with the transfer amount, which I just divide by the number of months at 0%

block10

Its also worth considering if you are eligible for a fee free BT offer. I believe Santander everyday card is 0% fee for 18months.

HurdyGurdy

Thank you all. I have applied for, and been accepted, the 24 month card.  I've never done a BT before, so I'm really pleased