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Questions about Balance Transfers

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  • You'll still have the same debt, but lenders will see whether you have it on a promotional rate or not.
  • TheWizard91, a balance transfer card can't be used to send money to a "debit card" or current account.

    For that purpose you need to look at a Money Transfer card.
  • thank you :)
  • Hello, 
    How does it work if you make a 0% balance transfer for £1000 that ends in say sept 2020. You then have new offers monthly on same card and make a new 0% balance transfer for £400 that ends in say Jan 2021. 
    Do you have to pay the £1000 off by Sept to get it 0% rate and then have until Jan to pay the remaining £400 at 0% or do they accumulate all the money together? 
    I've done this and want to make sure I don't get caught out of the 0% interest period. Hope that all makes sense!
    Thanks  


  • No.  The balances remain in separate buckets.  Payments are then allocated according to the terms of the card.
  • tomkut
    tomkut Posts: 36 Forumite
    Eighth Anniversary 10 Posts Name Dropper Combo Breaker
    I can't understand the rule 3 of the :The six golden rules at:
    ... " you only avoid interest if you pay off the FULL balance, including transfers and purchases."
    Why should the full balance be paid off to avoid interest? This should be clarified with an example.


  • tomkut
    tomkut Posts: 36 Forumite
    Eighth Anniversary 10 Posts Name Dropper Combo Breaker
    No.  The balances remain in separate buckets.  Payments are then allocated according to the terms of the card.
    santander does not agree with you:
    "If you also use your card for purchases during the balance transfer introductory 0% interest offer period, you’ll be charged interest on those purchases. It’s important to clear the balance in full (including the balance transfer) before your next statementto avoid these interest charges"
    I have been charged interest despite clearing purchase amount and was told to clear the full balance to guarantee no further interest (balance of £4k, purchase of <£100)



  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Santander absolutely agree with me.

    If you don't clear the balance in full, you're charged interest.
  • Mr87
    Mr87 Posts: 122 Forumite
    Third Anniversary 100 Posts Name Dropper
    edited 28 March 2020 at 12:29AM
    @tomkut this used to confuse the hell out of me. It's due to the allocation of payments as @Deleted_User says. If you have a 0% balance on your card, and then do spending on it, you will get charged interest on your spending unless you pay off the ENTIRE balance in full (that is, the 0% and the interest bearing purchases). If you make a part payment before your statement (but after your purchase) the payment reduces the 0% balance, not the interest bearing balance. If the purchase hits your statement, it's too late - interest is charged.

  • tomkut
    tomkut Posts: 36 Forumite
    Eighth Anniversary 10 Posts Name Dropper Combo Breaker
    edited 28 March 2020 at 12:55AM
    Santander absolutely agree with me.

    If you don't clear the balance in full, you're charged interest.

    @Deleted_User In your first reply you said the balances are separate, in which case it is right to assume that one can pay off the purchase balance on its own. In your second reply you contradict it. It makes no sense, neither does the info in 3rd golden rule, nor the santander documentation
    Also, it seems that santander's aim is to screw customers:
    "You can still benefit from up to 56 days interest free
    To avoid standard interest you need to pay your full balance, excluding any promotional balances each month or interest will be charged on anything new you buy from the day the transaction appears on your account."


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