Barclaycard money transfer and subsequent minimum payments

Imvrasos

I recently did a money transfer off my Barclaycard, supposedly offering a 0% interest period until June 2024 for a 2.6% fee. I had the understanding that the money transferred and the fee, are not subject to the minimum repayment that has to be submitted following every monthly statement, currently 3.75% of total card balance. Therefore, the minimum monthly payment would be affected by any additional spend on the card, and the money transfer not being included in the 3.75% calculation.

However my first statement after the money transfer does include the transfer and fee into the 3.75% minimum payment significantly increasing the amount due. Does anyone please have experience with these Barclaycard money transfers and the way minimum payments are calculated? The product was marketed to me as per the paragraph above and I was looking to repay the full amount just before the end of the promotional period.

cymruchris

To my understanding any money transfer from any credit card still requires minimum payment to be made, although of course interest free. Are you suggesting that you thought you were getting say a money transfer of £2000 and then to pay nothing on it until your offer comes to a close - and then pay it off with a single payment on the last day? If so, from my knowledge - that's not how it works. (Happy to stand corrected if any cards offer such a service)

MorningcoffeeIV

The whole of your balance is used to calculate the minimum payment.

You say the card was "supposedly offering a 0% interest period until June 2024 for a 2.6% fee". Is this not the case?

TadleyBaggie

As above, I've never come across any form of CC transfer (Money or Balance) that worked the way you thought it would, i.e. nothing had to be paid until expiry. The total balance on the card in my experience always forms the minimum payment calculation.

redux

cymruchris said:

To my understanding any money transfer from any credit card still requires minimum payment to be made, although of course interest free. Are you suggesting that you thought you were getting say a money transfer of £2000 and then to pay nothing on it until your offer comes to a close - and then pay it off with a single payment on the last day? If so, from my knowledge - that's not how it works. (Happy to stand corrected if any cards offer such a service)

I don't know the current Barclaycard terms, but the OP mentions 3.75% minimum per month.

If there was £75 of spending, about £1 of interest on that, and £80 payment was made, then most of the £2000 would still be there. If this was done every month, it would be a way of borrowing the most of the full £2000 for the full term, then pay it all off.

However, from reading the description, either this isn't happening, or maybe the OP misunderstood something and expected to pay only 3.75% of the £75 spending. Perhaps this might be clarified.

In any case, doing something like I've just described is going to cost a lot less than doing significant monthly spending on the card and letting the balance roll up.

If someone is going to do something like I suggested, then interest can be minimised by doing spending just before the statement date, and making payment just after the statement date. Then the interest might be just a few pence.

Ebe_Scrooge

This is standard for any money transfer or balance transfer for any card - you still have to make the minimum payment every month.  A quick Google for BarclayCard Money Transfer shows this: https://www.barclaycard.co.uk/personal/customer/money-transfer

Take note of the bit in the "Things to bear in mind before you start" section:

"If you usually only pay your minimum monthly payment, make sure you'll be comfortable with the extra monthly payments for your money transfer on top."

Seems pretty clear to me.

msallen

Imvrasos said:

The product was marketed to me as per the paragraph above

Can you point us towards this marketing if online or copy it here if not.

Imvrasos

Many thanks to all posters for their useful insights. Source for my confusion is the CS representative who advised over the phone, I can modify the credit card DD to pay only any additional spending on the card without any penalties, as long as the transfer balance is cleared before the advised period.

I will be lodging a formal complaint on this as it appears the above advice was incorrect.

Ebe_Scrooge

Imvrasos said:

Many thanks to all posters for their useful insights. Source for my confusion is the CS representative who advised over the phone, I can modify the credit card DD to pay only any additional spending on the card without any penalties, as long as the transfer balance is cleared before the advised period.

I will be lodging a formal complaint on this as it appears the above advice was incorrect.

At the risk of sounding patronising (which is honestly not my intent), is there a possibility that you misunderstood what you were told?  Did you read the T&Cs yourself to make sure you understood them?

Yes, of course, we expect customer service reps to give us correct advice, but they are human beings and can make errors.  If you're sure that you were told that you didn't need to make payments towards the MT then a complaint may be in order.  But there is also some responsibility on yourself to read and understand the T&Cs (for any contract that you enter into).

Martico

I'm a bit concerned that you're taking a cash transfer on a card that you're still using for spending (so I assume still has an interest-charging balance?) This is ringing some debt alarm bells for me. If you're concerned that you're starting to struggle with debt management, then please consider heading over to the debt free wannabe sub-forum, where lovely and knowledgeable people can provide advice and support.
If I've got that wrong, or if that's not a message you want to hear, then apologies.