What happens if you spend on your CC after money transfer to bank account?

ItsComingRome

Alex9384 said:

ItsComingRome said:

Not to sound rude but this answer is easily Googled.

https://www.barclaycard.co.uk/personal/help/paying-bill/direct-debit-additional-payments

Sorry, but it doesn't answer my question. If you think it does, why not to simply answer it, which would cost you less time and effort rather than googling the link, then copy-pasting it, with an additional comment. Much more work for you and still no answer.

I asked if the money transfer balance and spending balance is the same, because obviously it doesn't work like that with many BT cards and people have been charged interest when spending on BT cards after transferring balance. I'm not sure how it works with money transfer.

So, if I spend exactly £193 and then pay it off (the amount that was supposed to be taken by minimum DD), the overall balance will stay £6463 and I can repeat this every month and the balance will stay the same the whole time?

You asked if you paid off the purchase what would happen to the DD.  That answers the question.

If you're going to be so unappreciative you can find this stuff out yourself.  I'm out.

Alex9384

ItsComingRome said:

You asked if you paid off the purchase what would happen to the DD.  That answers the question.

If you're going to be so unappreciative you can find this stuff out yourself.  I'm out.

Actually, I asked more than one question. One was about the DD but I still don't know if balances are somehow separated or not. I'll need to go and spend something on that card to see if the purchase is simply added to the money transfer balance or how exactly it works.

jay1804

Alex9384 said:

The Barclaycard has £7000 credit limit.

I transferred the max possible amount of £6300 + 163 fee (2.6%), so the balance is £6463.

First minimum payment will be £193 (3%).

So if I spend £193 on purchases and pay it off, will they still take another £193 by direct debit? Or just some portion of it? Or zero? That's what I'd like to know now.

No your minimum payment is based on the total balance.

£6463 + £193 = £6656 
3% of £6656 = £199.68

In this example your minimum payment would be £199.68 so if you payed £193 they would still take £6.68, if you made that payment more than 3 working days before the DD collection, otherwise they would take the full DD.

Alex9384

jay1804 said:

No your minimum payment is based on the total balance.

£6463 + £193 = £6656 
3% of £6656 = £199.68

In this example your minimum payment would be £199.68 so if you payed £193 they would still take £6.68, if you made that payment more than 3 working days before the DD collection, otherwise they would take the full DD.

OK, thank you. Then I should probably keep spending on that card as it is also a rewards card.

My only concern would be the impact on my credit history because would show one maxed out card for 18 months.

jay1804

Alex9384 said:

jay1804 said:

No your minimum payment is based on the total balance.

£6463 + £193 = £6656 
3% of £6656 = £199.68

In this example your minimum payment would be £199.68 so if you payed £193 they would still take £6.68, if you made that payment more than 3 working days before the DD collection, otherwise they would take the full DD.

OK, thank you. Then I should probably keep spending on that card as it is also a rewards card.

My only concern would be the impact on my credit history because would show one maxed out card for 18 months.

 

As long as you haven't got any important applications you should be fine, also make sure you have a way to pay off the balance before the 0% ends.

phillw

Alex9384 said:
Interest on what?

Purchases, from the day you made them until the day you pay them off.

If it's 0% on purchases as well then there is no interest.

The standard up to 59 days interest free on credit cards only applies if you are paying the total statement balance, which if you have a money transfer sitting there for a year, then you are not paying the total statement balance every month.

Some cards might keep the two balances separate, so that as long as you pay the purchases every month then you don't get charged interest, but that is uncommon. I'm sure it used to be recommended to cut up a money transfer card to avoid being tempted to use it for purchases.

It's the kind of question that can only be answered definitively if you go through the T&C and ask the card issuer to confirm.

Thesaltmustflow

phillw said:

Alex9384 said:
Interest on what?

Purchases, from the day you made them until the day you pay them off.

If it's 0% on purchases as well then there is no interest.

The standard up to 59 days interest free on credit cards only applies if you are paying the total statement balance, which if you have a money transfer sitting there for a year, then you are not paying the total statement balance every month.

Some cards might keep the two balances separate, so that as long as you pay the purchases every month then you don't get charged interest, but that is uncommon. I'm sure it used to be recommended to cut up a money transfer card to avoid being tempted to use it for purchases.

It's the kind of question that can only be answered definitively if you go through the T&C and ask the card issuer to confirm.

I think Barclaycard are one of only a couple of card providers that keep MT/BT deals separate from same card spending. They could of course have changed that now and you're right only T&C's will definitively answer the question