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Quick query please from a noob

edited 30 November -1 at 1:00AM in Credit Cards
16 replies 851 views
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Replies

  • eco_warrioreco_warrior Forumite
    563 posts
    That’s what most folk do, or at least try to do.

    The bank will make money on the fee (if there is one) or will hope the customer will stay with them in the long run and so generate income from that.
  • tank666tank666 Forumite
    19 posts
    Thanks mate I have to go to sleep appreciate your answers although I thought you said they don't charge a fee for paying off the card :)

    I am probably misunderstanding you again. Thanks again!
  • SnowTigerSnowTiger Forumite
    4.4K posts
    Tenth Anniversary 1,000 Posts Name Dropper Photogenic
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    tank666 wrote: »
    My card company I am with NOW who I am leaving said they will charge the 5% fee and 18.33% to move my balance from them to the new card company.

    Which credit card company told you that?
    tank666 wrote: »
    Oh right thanks. I am still surprised as if someone was clever enough they could get a card with say 3k on at zero percent. Then transfer at the right time without ever having paid the original card lender any interest? So the card company doesn't make any profit???

    Credit card companies receive a small percentage of everything you spend on your card.

    Most credit card users clear their balance every month and don't pay any interest.
  • edited 18 May 2019 at 3:09AM
    Ben8282Ben8282
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    edited 18 May 2019 at 3:09AM
    You appear to be very confused.
    tank666 wrote: »
    My card company I am with NOW who I am leaving said they will charge the 5% fee and 18.33% to move my balance from them to the new card company.
    I think they somehow misunderstood your question. I think that they thought you wanted to transfer a balance TO their card, for which they charge a 5% fee and, as you have no 0% offer on this card, they told you they would charge interest at the standard 18.33% interest rate.
    If you have a balance on your current credit card and transfer it to a new 0% credit card you will pay NOTHING to the current card provider.
    If you are currently paying interest you will continue to be charged interest at the current rate until the balance transfer is received by them at which point the balance will be 0 and you will be charged no more interest after that date.
    Your new card will normally charge you a fee for making the balance transfer. You say the new card has a fee of 5%. Is that correct? It appears to be a bit high. Which card is it and how long is the 0% period for?
    Once the balance transfer is made the fee will be debited to the new card. You will not pay interest on tha balance transfer amount for the duration of the 0% offer.
    Is that now clear?
  • tank666tank666 Forumite
    19 posts
    SnowTiger wrote: »
    Which credit card company told you that?

    Virgin

    Credit card companies receive a small percentage of everything you spend on your card.

    Most credit card users clear their balance every month and don't pay any interest.

    Got it thank you for the reply.
  • tank666tank666 Forumite
    19 posts
    Ben8282 wrote: »
    You appear to be very confused.

    I think they somehow misunderstood your question. I think that they thought you wanted to transfer a balance TO their card, for which they charge a 5% fee and, as you have no 0% offer on this card, they told you they would charge interest at the standard 18.33% interest rate.
    If you have a balance on your current credit card and transfer it to a new 0% credit card you will pay NOTHING to the current card provider.
    If you are currently paying interest you will continue to be charged interest at the current rate until the balance transfer is received by them at which point the balance will be 0 and you will be charged no more interest after that date.
    Your new card will normally charge you a fee for making the balance transfer. You say the new card has a fee of 5%. Is that correct? It appears to be a bit high. Which card is it and how long is the 0% period for?
    Once the balance transfer is made the fee will be debited to the new card. You will not pay interest on tha balance transfer amount for the duration of the 0% offer.
    Is that now clear?

    Crystal clear thank you. Think I confused everyone with the way I worded everything but very much appreciate the advice.:)
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