Inadvertent purchase on credit card which has a 0% money transfer deal on it

sausage_time

Can you say which card it is?  Others may be able to confirm.

molerat

The_Baroness said:

molerat said:

The_Baroness said:

molerat said:

How much is this spend ?  You will only pay interest on the spend amount, you will not lose the interest free on the remainder.

Only £30

So it will likely cost you under £1 in interest, not the most expensive mistake in the world

I'm not worried about any interest on the purchase as I can pay the amount off in full so as to not incur any interest. My concern is that the 0% interest balance is not affected by this transaction - as that amount is a lot larger

Why should it affect the existing balance ?  The usual concern with spending on a transfer card is attracting interest on that spend.  This can be made worse by realising the mistake then paying it off immediately which fails to stop the interest as the payment is only applied to items that have appeared on a statement so goes to the transfer balance with interest continuing on the purchase.

molerat

The_Baroness said:

molerat said:

The_Baroness said:

molerat said:

How much is this spend ?  You will only pay interest on the spend amount, you will not lose the interest free on the remainder.

Only £30

So it will likely cost you under £1 in interest, not the most expensive mistake in the world

I'm not worried about any interest on the purchase as I can pay the amount off in full so as to not incur any interest. My concern is that the 0% interest balance is not affected by this transaction - as that amount is a lot larger

Why should it affect the transferred balance ?  The usual concern is interest accruing on the spend.  This can be made worse by realising the error and paying it off immediately which generally fails to stop the interest as payments are only allocated to items that have appeared on a statement so is applied to the transfer balance with interest continuing on the spend amount.

The_Baroness

sausage_time said:

Can you say which card it is?  Others may be able to confirm.

Yes, it's a Barclaycard

sausage_time

From https://www.barclaycard.co.uk/personal/help/paying-bill/payment-allocation

If you don’t pay the total outstanding balance in full by the payment due date, we'll apply the amount you do pay to reduce higher interest rates balances, before lower interest rate balances. This usually means that you’ll pay off any cash transactions and purchases, before you pay off any of your balance transfer.

So if it were me I'd pay £30 plus minimum statement payment once the transaction appears on a statement.

The_Baroness

molerat said:

The_Baroness said:

molerat said:

The_Baroness said:

molerat said:

How much is this spend ?  You will only pay interest on the spend amount, you will not lose the interest free on the remainder.

Only £30

So it will likely cost you under £1 in interest, not the most expensive mistake in the world

I'm not worried about any interest on the purchase as I can pay the amount off in full so as to not incur any interest. My concern is that the 0% interest balance is not affected by this transaction - as that amount is a lot larger

Why should it affect the transferred balance ?  The usual concern is interest accruing on the spend.  This can be made worse by realising the error and paying it off immediately which generally fails to stop the interest as payments are only allocated to items that have appeared on a statement so is applied to the transfer balance with interest continuing on the spend amount.

Thanks for clarifying. I was having a brain fog moment regarding repayments, so wanted to make sure that I didn't do anything that might make the situation worse.

The_Baroness

sausage_time said:

From https://www.barclaycard.co.uk/personal/help/paying-bill/payment-allocation

If you don’t pay the total outstanding balance in full by the payment due date, we'll apply the amount you do pay to reduce higher interest rates balances, before lower interest rate balances. This usually means that you’ll pay off any cash transactions and purchases, before you pay off any of your balance transfer.

So if it were me I'd pay £30 plus minimum statement payment once the transaction appears on a statement.

Thanks. That is exactly what I am intending to do now I have had your useful input

RedImp_2

You wouldn’t imagine that they offer these kind of deals expecting that no one is going to use the cards for a year (or however long) so I’m sure it’s okay.

th081

The_Baroness said:

sausage_time said:

Can you say which card it is?  Others may be able to confirm.

Yes, it's a Barclaycard

I have a Barclaycard with a zero BT on it, when I spend on it I just pay the full spend each month and don't incurr interest 

th081

You don't even have to pay more than the minimum if that's more than the £30 spend, so for example you have 5k 0% and £30 spend, minimum payment is £53 as that is more than your £30 spend you can just pay the £53, 30 would cover the spend the rest off the 0 deal. 

Make sure it's statemented before you pay.