I've never done a balance transfer before and need some advice

Jas_Ramsden

I have an MBNA card that I got with 0% for 48 months back in 2018 for a DIY project. I was paying off all okay by financial things happened and I could only pay off the minimum amount...so now interest is being charged which will take forever and a day to pay back.

I've seen the 'Sainsbury's Bank Balance Transfer Credit Card' which is 0% for 32 months. Am I right in thinking that I can transfer my remaining amount with MBNA (about £4.5k) over to this new card and basically pay it all off over 32 months without any fees?

I know this may seem obvious and have read lots of bits online, but wanted to ask in 'noddy' talk.


Jason

[Deleted User]

No. You'll need to pay the BT fee, which is either 2.24% or 3%, unless they've sent you a particularly generous offer.

Jas_Ramsden

Update: When I stated 'without any fees', I was referring to any 'additional' fees. I can see with this card that the balance transfer fee is 2.24% which I'm assuming that on the £4.5k, I have to only need to pay £100.80p and as long as it is all cleared by the end of the 32 month term?

Ebe_Scrooge

As ZX81 says, there is usually a Balance Transfer fee to pay.  But aside from that, your assumption is correct.

A couple of caveats.  First, you're not guaranteed to be accepted for the Sainbury's card.  Secondly, if you are accepted, you may be offered a limit of less than £4.5k - if this is the case, it's usually still worthwhile to transfer what you can to save paying interest on that portion of the debt.

Finally, make absolutely sure you have plans in place to repay the full balance by the time the promotional rate expires - there's no guarantee that you'll be able to transfer any remaining balance to another card.