Balance transfer cc - how to work out monthly payment

Suzycoll

Hi all . Hope all are good 😊 

I am looking at transferring a cc balance to a n othe.

I have done Martin's check & have been pre approved for 4 cc.

Before I choose which one my Q is - at what stage will I know what the minimum monthly payment would be ?
And how it is worked out?

Haven't done this for a while , from memory you don't know until after applying? 
That's no good for me . I need to know before applying. 

Any help appreciated 👍 

grumpy_codger

Suzycoll said:

Before I choose which one my Q is - at what stage will I know what the minimum monthly payment would be ?

Before applying

And how it is worked out?

By checking the T&C of the card. Most likely you'll find this information in the Summary Box.
Also, comparison sites can have this information. E.g. https://moneyfactscompare.co.uk/credit-cards/balance-transfer-credit-cards/ - see 'Vew Further Details' for each card listed there.

Nasqueron

The minimum payment value is given to you on the first statement along with the due date 

Look at the sites to find the minimum payment, it's usually 1% of the total balance though some can be a bit higher, this is freely available before you apply. Nobody can tell you anything more seeing as you don't mention which cards you are looking at but you can find it on their website. You can presumably do a bit of simple maths based on what you transfer + the fee to get the amount.

Do note that "pre-approved" is marketing nonsense, until you do a full credit check you cannot be approved.

born_again

Best way to do it.
Take amount you are transferring & any fee's involved. Divide that by the term of the 0% deal.

That is the amount you need to pay to clear the debt, within the 0% period.

As you need to aim to clear it. As you might not get any future offers 🤷‍♀️👍

grumpy_codger

born_again said:

Best way to do it.
Take amount you are transferring & any fee's involved. Divide that by the term of the 0% deal.

That is the amount you need to pay to clear the debt, within the 0% period.

As you need to aim to clear it. As you might not get any future offers 🤷‍♀️👍

Well, what's your definition of the 'best way' in this respect?
By my stadards the best way is to make minimum payments (or a fraction more), keep the money in a good savings account(s), including regular saver(s) and have it available to pay the balance of when 0% ends and one can't "get any future offers".

born_again

grumpy_codger said:

born_again said:

Best way to do it.
Take amount you are transferring & any fee's involved. Divide that by the term of the 0% deal.

That is the amount you need to pay to clear the debt, within the 0% period.

As you need to aim to clear it. As you might not get any future offers 🤷‍♀️👍

Well, what's your definition of the 'best way' in this respect?
By my stadards the best way is to make minimum payments (or a fraction more), keep the money in a good savings account(s), including regular saver(s) and have it available to pay the balance of when 0% ends and one can't "get any future offers".

All I( said was how best to work it out, not how you then fund the payments.

Clearly as you say that would gain interest, if it is worth it depends on the level of balance transfer. For a few pence interest?

grumpy_codger

The OP wanted to work out the minimum payments.
The longest offers are 33 months;  3-year fixed savings rates are about 4.4%. So the interest can be as big as about £120 per £1K, not "a few pence". A little less if calculated more accurately.

kimwp

For minimum payments, check the terms and conditions of the card. It seems to be the minimum of a set amount, a percentage (1-2%) of the outstanding debt  or something else that I can't remember.

kimwp

born_again said:

Best way to do it.
Take amount you are transferring & any fee's involved. Divide that by the term of the 0% deal.

That is the amount you need to pay to clear the debt, within the 0% period.

As you need to aim to clear it. As you might not get any future offers 🤷‍♀️👍

This is the best way if you are trying to pay off the debt, but not the best way to hold a balance and earn interest on it (I earned roughly £1.5k doing this last year)

(And not the way to calculate minimum payments, which is what the OPs question was)