Paying double interest during credit card transfers

terriermama

I did a BT from Capital One to MBNA. The balance is being reflected immediately with MBNA so I am paying interest already but it's still also on my Capital One card - they saying they haven't received payment yet. So I am paying double interest for maybe up to a week. This is so unfair. Another means by which we're screwed by financial institutions.

jimclark1967

You'll still make a saving in the long run assuming the rate on MBNA is lower. This is a more general issue that transfers between financial institutions take 3 or 4 days when they really don't need to.

If you were transferring between savings accounts you'd miss a few days interest, just like with a BT you pay twice for a few days

JC

stormCat99

Don't worry, you shouldn't be getting charged interest twice. Whenever I've made a BT I've had the balance appearing on both cards at once for a period of time.

When querying this, I've always been told that the receving card won't actually charge any interest until the old card has been paid off, iyswim. So although it looks unfair, you shouldn't be doubly penalised.

terriermama

Thx both for your input but I rang the cc companies and they confirmed that I will be charged interest both ways. I also did a transfer to American Express and that one can take up to 10 days to be wiped off the 'old' card.

In addition, my 'old' cards have cash transactions on them at hefty interest and gets charged no matter if the balance is paid in full, so that's why I even more peeved, as both debt amount and APRs are extremely high.

Oh well, as you say, at least I'll be paying much less interest for the next 6 months. Before this money-saving blitz, I can't believe how I was robbed blind, and how unaware I was.