WARNING - Balance transfer fees - A hidden con

FTD

In case you didn't know you didn't know:

If you incur a fee for a balance transfer at a promotional rate, the fee is charged at the standard interest rate for the card, NOT the promotional rate.
I did 2 transfers charging £30 - £40 each and have copped for £1 interest this month.


FTD

kidtechnical

A couple of weeks ago I was looking into taking a Virgin card for SBTs and asked them if the charge would be charged interest & they said it'd be added to the balanced & charged at 0%

W1zz

Virgin don't charge for BT or STB within their promotional period.

W1zz

YorkshireBoy

FTD wrote:

In case you didn't know you didn't know:

If you incur a fee for a balance transfer at a promotional rate, the fee is charged at the standard interest rate for the card, NOT the promotional rate.

With whom?

FTD

LloydsTSB Platinum Visa.

FTD

YorkshireBoy

FTD wrote:

LloydsTSB Platinum Visa.

FTD

These must have been BT's made more than 6 weeks after opening the account then? Still, £7 additional interest is not going to break the bank when you're swapping 15.9% (and more) debt for a 0% deal, even if it is only for 6-7 months. Agree it's one more charge to be aware of, so thanks for highlighting it.

By the way, I didn't know Lloyds did a Visa card?

FTD

Aye they do about 3

I got the card originally for a 6.9% life of balance interest rate, then they wrote to me last month with some cheques for 5.9% life of balance.
I did the math, and moved the balance onto my egg card then back again (that 1% adds up over the months!!!)

Only noticed the interest this month on the statement and called cust services - They confirmed it's in the terms and conditions.

I know it's such a small amount, but it makes you think, Just wasn't expecting it.

FTD

InsuranceLiability

HBOS dont do this, the fee is part of the intrest free balance amount.
Best to check when transfering

kidtechnical

W1zz wrote:

Virgin don't charge for BT or STB within their promotional period.

W1zz

Virgin themselves told me that I'd be charged for any BT after the account was opened but the fee would be added to the card balance & would be 0% interest, however someone on these foums said any BT within a month were charge free with Virgin... I never investigated the matter further myself because I've decided to open an Abbey Student account (will be in full time ed from 15/8) & make use of the £1200 0% overdraft instead.

pdpped

Does anyone know a card currently doing BT without charging a fee.
Not MBNA/virgin
nor Citi bank
nor Egg
nor Barclaycard
nor RBS/mint
As I have been through these bank already...?

Stoozing is great until you can't find a new card you want. :T

InsuranceLiability

Nat West
Marks and Spencer
(most) Capital One (if you are quick)


probably a few more