Why is interest charged from purchase day when I have a promotional balance
cdturri
Posts: 24 Forumite
in Credit cards
I have a Barclaycard and I have taken a deal to transfer some cash to my bank account at 0%. This is all good and fine but when I read the T&Cs I found a clause that said that once I had a balance on a promotional rate any additional purchases that I make will have interest charged from the purchase date even if I paid those additional purchases in full when the statement was due. This is confirmed by this help page:
help.barclaycard.co.uk/brochure/spending_transactions/promotional-standard-rate
I did a test with a small purchase and I was indeed charged a small interest on the purchase even though I paid it in full when the statement was due.
Can someone please explain to me why this stupid rule exists? It clearly dis-encourages me to use the card since once I have a balance with a promotional rate I can't avoid to pay interest in new purchases if I use the card for anything else. Is this a "small print" scam or is it that Barclaycard can't have their systems distinguish from the promotional rate balance and the standard rate balance?
Thanks!
help.barclaycard.co.uk/brochure/spending_transactions/promotional-standard-rate
I did a test with a small purchase and I was indeed charged a small interest on the purchase even though I paid it in full when the statement was due.
Can someone please explain to me why this stupid rule exists? It clearly dis-encourages me to use the card since once I have a balance with a promotional rate I can't avoid to pay interest in new purchases if I use the card for anything else. Is this a "small print" scam or is it that Barclaycard can't have their systems distinguish from the promotional rate balance and the standard rate balance?
Thanks!
0
Comments
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It's not a scam. It's common on all credit cards with the exception of Nationwide, I believe.
Keep a separate card for purchases.0 -
OK but I don't get it why this rule exists. Sure the bank is more than happy for me to spend on the credit card up to my credit limit as they get a % of my purchases?0
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They would rather have the interest. Many customers continue to mix the two transaction types on the same card.0
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You only qualify for an interest free period if you clear your balance in full. With a promotion sitting there you don't do that.
General advice for most people is don't mix transfers and purchases. They're giving you a substantial benefit with a 0% period. You cannot be surprised that they would like something in return?
The trick is to know the rules and not let them!0
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