Vanquis Interest

Belesaami

Hey All,

I'm a newbie, so thank you for taking time to read my post. I have a question, which may fall into the 'buyer beware category' but I hope the combined expertise here may answer the question. 

I took out a 0% balance transfer offer in the summer. I worked out my plan to pay off the balance in the allotted time frame and have been paying every month. Each month I have used the card for small amounts of purchase, which I thought I was paying off each month when the statement was generated. In my head I should not have been paying interest.

However, interest started appear and increase on my statements. I contacted Vanquis and was told that the money I was paying was proportionally off the 0% balance transfer and purchases. 

Therefore, only 10% of the money I was paying off was being allocated to the monthly purchases. I now have accumulated purchases balance which is attracting interest. I will not be using the card for further purchases.

On my Barclaycard, I have a similar deal, I have continued to purchase other good and have maintained the same method of repaying the 0% and clearing balance for purchases. I have not attracted and interest.

When I did this before with another card I was assured that the credits to the account were allocated to debits likely to attract interest first.

Is this just a difference in practice between companies? Right now I really feel like I have been scammed.

CliveOfIndia

It's not a scam, it's how most cards work.  If you make a purchase on a 0% BT card, then you have to clear the statement balance in full - not just the spending portion - to benefit from no interest charges.  This is why the general advice is never to spend on a BT card.

Barclaycard is one of the very few that will separate out the BT from purchases, meaning you can get away with just paying the purchase element each month.  But this is very much the exception rather than the rule.

Isthisforreal99

No scam here and the general advice is do not mix balance transfers and purchases on the same card for the very reason you have encountered.

Barclaycard are one of the few (possibly 2 or 3) outliers where you can do it.

Read the Vanquis T&C's

osmarks

Payments must go to the highest-interest balance first, but by carrying a balance on the card you lose the "grace period": at least in the eyes of the credit agreement, the default is for you to be paying interest from the day you make a purchase, and this is waived only if you pay the entire statement balance in full by the statement due date. Barclays have unusually nice terms regarding this.

grumpy_codger

MSE:

• 0% balance transfers: the five golden rules