Offers for BT or MT

NorwichMan

My existing Barclaycard is offering me a 0% BT for 20 months (3.3% fee) or 0% MT 19 months (3% fee). I am tempted to take the MT and add it to my stooze. From looking at the ts and cs I believe I could do this now, then let the next DD go through for the previous statement total, cancel the DD, make a manual payment to cover the remaining non-MT balance. Then just make minimum payments (and don't use the card for more spending) until the end of the 0% period.

Any reason not to do this? (I'm fine with the impact on credit file)

NorwichMan

Slightly revised plan: take the MT, manually make a payment covering the existing (pre MT) balance, adjust my DD to cover the minimum payment. 

Growingold

NorwichMan said:

Slightly revised plan: take the MT, manually make a payment covering the existing (pre MT) balance, adjust my DD to cover the minimum payment. 

When is your DD due?

Why I ask this is if you have enough time before the payment is due ( at least 10 days) you could alter your DD to the minimum amount now then you could clear your balance  thus giving you more money available for your MT. 

NorwichMan

Thanks Growingold, I did briefly consider making an early payment and then seeing if the value of the MT increased in the offer. Too late now as I went ahead, and once I pay off the purchases (non-MT) balance there will be about £1800 unused within the credit limit, but don't think I'll be able to use this. In any case my stooze pot is heading over £20k as I've now added a 0% purchase card along with the existing BT and MT cards. It's kinda fun.

Growingold

NorwichMan said:

Thanks Growingold, I did briefly consider making an early payment and then seeing if the value of the MT increased in the offer. Too late now as I went ahead, and once I pay off the purchases (non-MT) balance there will be about £1800 unused within the credit limit, but don't think I'll be able to use this. In any case my stooze pot is heading over £20k as I've now added a 0% purchase card along with the existing BT and MT cards. It's kinda fun.

I think from experience you can use the offer twice in a month if credit is available and it is still shown.  Paying your purchases (non MT) balance early before the payment due date  SHOULD go towards paying the purchase balance (as your statement had already been generated) as it is the one with highest interest , if it is before your payment due date which I presume it is.  However is it worth the risk?  DYOR

Don't forget to amend your DD to minimum amount or a regular payment figure which will cover the minimum amount.  When you change it it will tell you when this will take effect from , so if it takes effect this payment date then you would need to make an extra payment to cover your purchases amount figure to pay off in full.  

I'm not sure which BC you have but with mine I can still combine purchases and BT/MT.  The BT/MT remain interest free as long as I pay my purchases off in full before the payment due date as payments go toward highest interest rate balances first.  I have a regular payment set up and then I manually pay the rest of my purchase balance to preserve my 0% BT/MT's.

Growingold

NorwichMan said:

Thanks Growingold, I did briefly consider making an early payment and then seeing if the value of the MT increased in the offer. Too late now as I went ahead, and once I pay off the purchases (non-MT) balance there will be about £1800 unused within the credit limit, but don't think I'll be able to use this. In any case my stooze pot is heading over £20k as I've now added a 0% purchase card along with the existing BT and MT cards. It's kinda fun.

Kinda fun but make sure you stay on top of all your deals so as not to negate the gains.  Make a spreadsheet if you haven't done so already with details of offers taken out  and when they are due to be repaid.  Especially useful if you have taken several different offers out with the same card provider.  

NorwichMan

Thanks for your words of experience.

Like you I should be able to keep spending on my BC as the terms say they will allocate payments to the balance with the highest interest rate first.

Now I'm thinking I should aim to make purchases each month totalling at least the previous statement minimum payment, and then manually pay this amount. This should stop the MT balance from being chipped away by minimum payments, whilst also avoiding any interest charges for the duration of the 0% offer. I'll probably put a minimum payment DD in place as a safety net.

daivid

NorwichMan said:

Thanks Growingold, I did briefly consider making an early payment and then seeing if the value of the MT increased in the offer. Too late now as I went ahead, and once I pay off the purchases (non-MT) balance there will be about £1800 unused within the credit limit, but don't think I'll be able to use this. In any case my stooze pot is heading over £20k as I've now added a 0% purchase card along with the existing BT and MT cards. It's kinda fun.

If your stooze pot is over £20k you should be earning more than £1000 pa interest so may want to take steps to minimise tax e.g. ISAs for some of the savings, and trying to optimise the tax year interest is received (if already considered please don’t take offence).

NorwichMan

Thanks Daivid, no offense taken, I think I'm okay as I have some of it in an ISA. But I should review this, thanks for the prompt.