0% and per annum ??

Fabulouso

Hello, 
I need to make a purchase of 3k and want to pay it back ASAP. 

I have an offer of 0% fee with a 3.5% fee, but I also have an offer of 0% fee with 3.9% per annum fee- it’s thrown me a little as I’ve personally not come across that. 

How does it work? It gives me 36 months to repay and I (hope) that’s feasible. But when is the interest charged? If by some stroke of luck I can pay it off in the first year, say 11 months, would I not be charged the 3.9%? 

Would it be a good idea to do it for 11 months then balance transfer a similar offer if it’s not paid? 

Thanks in advance and sorry if it’s a super simple question :-)

cymruchris

Fabulouso said:

Hello, 
I need to make a purchase of 3k and want to pay it back ASAP. 

I have an offer of 0% fee with a 3.5% fee, but I also have an offer of 0% fee with 3.9% per annum fee- it’s thrown me a little as I’ve personally not come across that. 

How does it work? It gives me 36 months to repay and I (hope) that’s feasible. But when is the interest charged? If by some stroke of luck I can pay it off in the first year, say 11 months, would I not be charged the 3.9%? 

Would it be a good idea to do it for 11 months then balance transfer a similar offer if it’s not paid? 

Thanks in advance and sorry if it’s a super simple question :-)

I think you are confusing your APR's with your fees?

It should be X percent APR with an X percent FEE.

So I am guessing you have the choice of:

1 - 0 percent APR (no interest) and a 3.5% fee - so on £1000 that'd cost you £35.00 and then you paid it back before the promo ends.

2 - 3.9% APR INTEREST - with 0% fee - so you'd pay interest at a rate of 3.9% until your balance was paid off - but there'd be no fee to transfer from wherever you hold the balance now. Your interest would depend on how quickly you paid it off.

Fabulouso

cymruchris said:

Fabulouso said:

Hello, 
I need to make a purchase of 3k and want to pay it back ASAP. 

I have an offer of 0% fee with a 3.5% fee, but I also have an offer of 0% fee with 3.9% per annum fee- it’s thrown me a little as I’ve personally not come across that. 

How does it work? It gives me 36 months to repay and I (hope) that’s feasible. But when is the interest charged? If by some stroke of luck I can pay it off in the first year, say 11 months, would I not be charged the 3.9%? 

Would it be a good idea to do it for 11 months then balance transfer a similar offer if it’s not paid? 

Thanks in advance and sorry if it’s a super simple question :-)

I think you are confusing your APR's with your fees?

It should be X percent APR with an X percent FEE.

So I am guessing you have the choice of:

1 - 0 percent APR (no interest) and a 3.5% fee - so on £1000 that'd cost you £35.00 and then you paid it back before the promo ends.

2 - 3.9% APR INTEREST - with 0% fee - so you'd pay interest at a rate of 3.9% until your balance was paid off - but there'd be no fee to transfer from wherever you hold the balance now. Your interest would depend on how quickly you paid it off.

Thank you so much. You’re correct, I didn’t put it very well so I’m glad you knew what I meant! If I did the 0% transfer fee and paid it off within a year, would I be charged the yearly rate of 3.9 % still? 

I’m confused how it works (doesn’t take much)

[Deleted User]

You'll be charged the 3.9% APR on a daily basis, broken down into a daily rate. So the sooner you pay it off, the less you pay.

cymruchris

It depends on how long the promotional rate lasts - and how quickly you reduce the balance. If you left your £1000 on your credit card only paying minimum payments for the duration of the offer - you'd pay more interest than if you paid down your £1000 balance at a rate of £250 a month (plus interest), and cleared it in 4 months. You have to look at how long the offer lasts - work out what you'd pay monthly to get it down to zero - bearing in mind that every month interest would be added, albeit not a huge amount.

Sandtree

Fabulouso said:

Thank you so much. You’re correct, I didn’t put it very well so I’m glad you knew what I meant! If I did the 0% transfer fee and paid it off within a year, would I be charged the yearly rate of 3.9 % still? 

I’m confused how it works (doesn’t take much)

Assuming the 3.9% is an APR, that you paid the debt off in equal monthly installments and in 12 months then the interest paid would be marginally lower on the 3.9% fee free offer than the 0% with 3.% fee.

If you didnt pay it equally and backended the repayment then that would change the answer and all best are off if you go beyond either cards promotional period.