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    • tank666
    • By tank666 17th May 19, 10:40 PM
    • 19Posts
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    tank666
    Quick query please from a noob
    • #1
    • 17th May 19, 10:40 PM
    Quick query please from a noob 17th May 19 at 10:40 PM
    Hi,

    sorry for silly question but I just wanted to ask about a credit card balance transfer. My current company said if I transfer they charge a 5% fee and also the standard interest rate of 18.3%.

    Does that mean if I transfer 3,000 to a new card my total charges would be 150 for 5% and a further 549 for the 18.3%?? Sorry if obvious question but wanted to ensure I am doing it properly.

    Thank you in advance...
Page 1
    • jonesMUFCforever
    • By jonesMUFCforever 17th May 19, 10:51 PM
    • 25,852 Posts
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    jonesMUFCforever
    • #2
    • 17th May 19, 10:51 PM
    • #2
    • 17th May 19, 10:51 PM
    Are you transferring to a free interest credit card?
    If not then yes you pay the 5% transfer fee but as long as you make at least the minimum payment during the promotional period you should not be charged interest.

    If you are transferring to a card without a promotional period then yes you will pay interest ( a bit pointless really unless you do not qualify for a new card).
    What goes around - comes around
    give lots and you will always receive lots
    • tank666
    • By tank666 17th May 19, 10:54 PM
    • 19 Posts
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    tank666
    • #3
    • 17th May 19, 10:54 PM
    • #3
    • 17th May 19, 10:54 PM
    Thank you for reply although still confused, yes I am transferring the balance to a new zero percent card.

    I thought my current card company still charge me 5% irrespective of that though? And the 18.3% as well.
    • eco_warrior
    • By eco_warrior 17th May 19, 11:05 PM
    • 378 Posts
    • 174 Thanks
    eco_warrior
    • #4
    • 17th May 19, 11:05 PM
    • #4
    • 17th May 19, 11:05 PM
    The 5% will be 150 and that will be charged up front. But the 18.3% will be the annual percentage rate. So the amount you will pay on the 3000 will be charged monthly and will vary depending on your average daily balance. So basically no, it won’t be 549. It could be more or could be less, depending on how long you take to pay off the 3000.

    This is why people go for 0% deals.
    • tank666
    • By tank666 17th May 19, 11:09 PM
    • 19 Posts
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    tank666
    • #5
    • 17th May 19, 11:09 PM
    • #5
    • 17th May 19, 11:09 PM
    Thank you but I don't think I explained myself properly. 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.

    So I am trying to work out how much I pay my card company I am with now to leave them. I know the new company I am moving to will be zero percent so I won't pay an interest during the promo period.

    Hope that makes sense sorry if I am being thick.
    • eco_warrior
    • By eco_warrior 17th May 19, 11:10 PM
    • 378 Posts
    • 174 Thanks
    eco_warrior
    • #6
    • 17th May 19, 11:10 PM
    • #6
    • 17th May 19, 11:10 PM
    Sorry I’ve missed your last post

    You won’t be charged a fee by your current credit card provider for transferring to another one. You’ll be charged interest up until the day you pay it off though, assuming it’s on the APR you mentioned
    • tank666
    • By tank666 17th May 19, 11:12 PM
    • 19 Posts
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    tank666
    • #7
    • 17th May 19, 11:12 PM
    • #7
    • 17th May 19, 11:12 PM
    Oh really? I thought (very fairly) they would charge me a fee to claw back some of the money they are losing from me switching cards?
    • eco_warrior
    • By eco_warrior 17th May 19, 11:14 PM
    • 378 Posts
    • 174 Thanks
    eco_warrior
    • #8
    • 17th May 19, 11:14 PM
    • #8
    • 17th May 19, 11:14 PM
    A balance transfer is just a different way of paying off a credit card. Your current card provider will just receive a payment, like any other. There shouldn’t be a fee for paying it off, like a loan for instance.
    • tank666
    • By tank666 17th May 19, 11:16 PM
    • 19 Posts
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    tank666
    • #9
    • 17th May 19, 11:16 PM
    • #9
    • 17th May 19, 11:16 PM
    Ok cool so I don't pay them 5%.

    But I carry on paying 18.3% to them until the balance transfer has been completed. Is that correct?
    • eco_warrior
    • By eco_warrior 17th May 19, 11:18 PM
    • 378 Posts
    • 174 Thanks
    eco_warrior
    Yeah if that’s the rate you are on then you will be charged interest up until the day you settle the full balance.

    This means you’ll have interest to pay the following month, which once settled, means you’ll have nothing further to pay.
    • tank666
    • By tank666 17th May 19, 11:20 PM
    • 19 Posts
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    tank666
    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???
    • eco_warrior
    • By eco_warrior 17th May 19, 11:27 PM
    • 378 Posts
    • 174 Thanks
    eco_warrior
    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.
    • tank666
    • By tank666 17th May 19, 11:30 PM
    • 19 Posts
    • 0 Thanks
    tank666
    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!
    • SnowTiger
    • By SnowTiger 17th May 19, 11:39 PM
    • 3,729 Posts
    • 2,728 Thanks
    SnowTiger
    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.
    Originally posted by tank666
    Which credit card company told you that?

    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???
    Originally posted by tank666
    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.
    • Ben8282
    • By Ben8282 18th May 19, 2:02 AM
    • 3,123 Posts
    • 1,701 Thanks
    Ben8282
    You appear to be very confused.
    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.
    Originally posted by tank666
    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?
    Last edited by Ben8282; 18-05-2019 at 2:09 AM.
    • tank666
    • By tank666 18th May 19, 7:50 AM
    • 19 Posts
    • 0 Thanks
    tank666
    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.
    Originally posted by SnowTiger
    Got it thank you for the reply.
    • tank666
    • By tank666 18th May 19, 7:52 AM
    • 19 Posts
    • 0 Thanks
    tank666
    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?
    Originally posted by Ben8282
    Crystal clear thank you. Think I confused everyone with the way I worded everything but very much appreciate the advice.
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