Confused a bit about balance transfers

TigerKit919

I'm new to the balance transfer thing, my current long term 0% with Barclaycard is due to end in Sept, but I'll need more time to pay off what I'm about to spend on it and can't afford to pay a full balance to not get charged interest.  I know I'm being a bit thick, but when the balance transfer offer is say 34mths does that mean any new purchases on the card are 0% too or is the term JUST for the transferred debt ?  i.e I can't use the card for purchases ?

DullGreyGuy

TigerKit919 said:

I'm new to the balance transfer thing, my current long term 0% with Barclaycard is due to end in Sept, but I'll need more time to pay off what I'm about to spend on it and can't afford to pay a full balance to not get charged interest.  I know I'm being a bit thick, but when the balance transfer offer is say 34mths does that mean any new purchases on the card are 0% too or is the term JUST for the transferred debt ?  i.e I can't use the card for purchases ?

Depends on the card and its offer, some with be BT only, some will be BT and purchases, some will be BT and purchases but with different durations. 

Generally unless its a card with identical BT and Purchase timescales then you dont want to be spending on a BT card. 

TigerKit919

Thank you, I'm glad I asked and didn't just barrel into applying, so I need to look for BT & Purchase offers then ?
it was the TSB one with the longest time and best fee, I couldn't / haven't seen anything on it yet about Purchases

Emmia

TigerKit919 said:

Thank you, I'm glad I asked and didn't just barrel into applying, so I need to look for BT & Purchase offers then ?
it was the TSB one with the longest time and best fee, I couldn't / haven't seen anything on it yet about Purchases

It's probably better to have a separate card for purchases, one which you clear in full each month so any interest rate isn't an issue. 

It's a bit concerning that you're asking about doing a BT as you can't clear your existing 0% in time as well as wanting to purchase on the new card. This indicates your finances aren't in great shape / you've not got a good handle on your budget/finances.

CliveOfIndia

TigerKit919 said:

I'll need more time to pay off what I'm about to spend on it and can't afford to pay a full balance to not get charged interest.

Aside from the nuances of BT and purchase promotions, unless you are absolutely sure you've got 0% on purchases then you really should be planning to spend on a card when you know you can't afford to pay it off in full when the statement arrives.

TigerKit919 said:

Thank you, I'm glad I asked and didn't just barrel into applying, so I need to look for BT & Purchase offers then ?

Yes - or else get 2 cards, one for the BT and another for purchases.  But read the T&Cs carefully.  Particularly with purchases, some cards will give you 0% on purchases made at any point during the promotional period, some may limit it to purchases made within the first 90 days or similar.

Either way, remember you need to have money put aside to repay the full balance when the promotional rate expires.  You may be able to transfer any remaining balance to another card, but it's extremely unwise to simply assume you'll be able to do so.

Brie

There are some very good reasons to get a 0% on purchases card - my best was so that I could use it to buy a car that was urgently needed (no time to save) and could by paid off over a couple of years.  Cheaper than a car loan.

It's better (in my opinion) to get a 0% BT card as then you can BT an outstanding balance for just the transfer fee (4%+ currently for most) and then use the card that has had the balance cleared for your purchases and clear that in full each month.  

Normal rules apply - always have at least a minimum DD set up so you never miss a payment so you don't lose the 0% deal.  Better yet is to have a higher than minimum DD set up so you clear extra each month making it less likely to end up in a desperate situation with the 0% deal ends.  

If you are having problems clearing a card or paying in full each month then you need to look at your budget.  Best way to do that is to fill out a statement of accounts (SOA, see below) and check what can be trimmed to make everything fit.  Posting it back on the debtfree wannabee board will get you lots of friendly advice. 

DullGreyGuy

TigerKit919 said:

Thank you, I'm glad I asked and didn't just barrel into applying, so I need to look for BT & Purchase offers then ?
it was the TSB one with the longest time and best fee, I couldn't / haven't seen anything on it yet about Purchases

If you do get a BT and Purchases card make sure you check the rules, used to be more common historically but there is still at least one card where the Purchases are only purchases made within X days of the account opening and later ones attract normal interest. It's common that BTs are also only BTs in the first X days.