MBNA - Balance Transfer and Purchases - Warning!

duncster

I try to keep myself money saving fit and minimise any interest payable. I have transferred a balance over to an MBNA credit card at 0% - well done me! However, I still have credit on this card, and there is cashback for purchases, so I recently used it for a purchase. 
Now, with Sainsbury's credit card, if I pay that purchase off within the month (56 day period) I incur no interest. NOT the case with MBNA. I am informed that as I didn't pay the whole balance off (obviously as it is at 0%) then I will immediately incur interest - negating any benefit of cashback.
I am sure it is in the small print somewhere - but I didn't see it. 
Just a warning - its me being too clever. 

CliveOfIndia

This is the case with many (perhaps even the majority?) of cards.  Some, as you say, treat BT and purchases separately when it comes to apportioning payments; but most cards will charge interest if you don't repay the full balance (purchases plus BT).

The advice on this forum is always to never mix purchases and BTs on the same card - unless you're absolutely certain that your card is one of the few that will "allow" it, as it were.

A salient lesson in why it's so important to read the small print with any contract, arguably even more so where it's finance-related.

born_again

Usually in these cases. Wait till you get the statement & then pay the purchase debit & at least the minimum balance on the statement. Better to add a bit extra. 
As the purchase is at a higher rate, that gets paid 1st, but you need to ensure a bit extra to cover the min on the balance transfer.
That should (on most) keep the interest at zero.

A big mistake many make is paying a purchase back before a statement is produced with it on. As any payment pre this goes towards the last statement. Not any purchases since the last statement.

Marchitiello

born_again said:

Usually in these cases. Wait till you get the statement & then pay the purchase debit & at least the minimum balance on the statement. Better to add a bit extra. 
As the purchase is at a higher rate, that gets paid 1st, but you need to ensure a bit extra to cover the min on the balance transfer.
That should (on most) keep the interest at zero.

A big mistake many make is paying a purchase back before a statement is produced with it on. As any payment pre this goes towards the last statement. Not any purchases since the last statement.

Good advice, but the interest will not be 0, it will be whatever APR is standard to the card, for the period until that value (the new purchases balance) was paid off. It may be few pennies or it may be some £, but there will be something to pay, which potentially is higher than the 0.5% max cashback available on Some MBNA cards. 

OP, if you are after cashback on purchases, simply open and use a Chase bank account, as it offers 1% cashback applicable to most spending categories (albeit capped),