stooze + purchase

Dagobert

A few months back Skycard offerd me a 0% BT until 1st December.

Until then I had used it for purchases as it used to offer 2%, later 1% cashback in the form of free bets (used for matched betting) redeemable in £5 chunks.

When I started the stooze I had 474 cashback points. From 31st July the points will not be able to be converted to Sky bets anymore. I would need to spend £26 by 1st July to get £5 worth of free bets.

As I understand it, the £26 purchase would not be cleared by my monthly payments and therefore accrue interest at 15.76% for 5 months. This would cost approx. £1.70.


As I have never paid credit card interest before, I would like someone to check my calculations and confirm whether the cheaper debt is paid off first. Many thanks in advance.

YorkshireBoy

It'll be slightly more than £1.70 in total because, although the monthly rate is 1.3097% (@ 16.9% APR), the interest will compound due to the order of payments* (promotional balances are repaid first before interest).

I assume you've checked there isn't a £1 minimum interest charge?


EDIT: If you want to stop the interest in December (ie without having to pay two consecutive statements in full), then remember to overpay slightly to create a positive balance...which you should then be able to have sent to you by cheque if you decide to close the account.

* Payments you make will be applied to your account in the following order:

1. Promotional Balances (including interest) - Your 0% BT
2. Interest and other charges - Interest on your purchase
3. The Standard Balance - the purchase itself
4. The Cash Balance

Dagobert

YorkshireBoy wrote:

I assume you've checked there isn't a £1 minimum interest charge?

Good point!
I just have to write the 474 points off.

YorkshireBoy wrote:

If you want to stop the interest in December (ie without having to pay two consecutive statements in full), then remember to overpay slightly to create a positive balance

I am not quite sure I understand.

I presume this is only relevant if I want to make purchases in December after the balance has been paid off?

YorkshireBoy

Dagobert wrote: »

I am not quite sure I understand.

I presume this is only relevant if I want to make purchases in December after the balance has been paid off?

Because you'll be carrying an interest bearing balance in December (from your £26 purchase made now), there will always be some trailing, or residual, interest when you settle your 0% BT.

The statemented balance you see on screen will include interest to date, but will not include interest which will accrue from the date you send your payment to the date your payment clears onto your account.

We're only talking 'pennies' on your balance, but overpaying will mean you can close the card earlier, rather than wait another month...and incur another £1 minimum interest charge (if indeed your card chanrges one).

Dagobert

I was only considering the £26 purchase but, having read your point about the £1 min. monthly interest, I decided to give it a miss and forgo the £5 cashback.

So, all I have on the card is the stooze balance, which must be paid off by 1st December. My statement period starts on the 5th of the month.

As the card no longer gives cashback free bets I will not use it for purchases anymore. I am not sure whether it is best to close it or keep it in case I get another BT offer at some point.

YorkshireBoy

Dagobert wrote: »

but, having read your point about the £1 min. monthly interest

Dagobert,

I haven't checked...I only asked if you had, because ISTR Barclaycard have this on their own branded cards.

Dagobert

YorkshireBoy wrote: »

I haven't checked...I only asked if you had

I did - that's why I scrapped the idea of a small purchase for cashback purposes.