Credit Card Interest !

[Mike]

Hi all

I recent opened a new credit card and transferred a balance to it (interets free)...........I then spent approx £100 on it.

I pay an amount (each month) to reduce it to zero after the interest free period..... However I noticed that they have started to charge me interest only a small amount but interest ! When I phoned they explained that any payment I make go towards paying the balance transfer frist so I am being charged on my £100 purchases.

Question is will I pay interest on this £100 for the next six months :mad:

Mike

[r1ch]

Yes, unless you pay off the transfer + the £100. All of the deals that I have seen work that way - any payments that you make go towards the lower interest debt first. Maybe you could sign up for another card with an iterest free balance transfer deal and pay it off with that? As long as you don't spend anything on the new card you'd be all set.

[Nidge]

Hi all

I recent opened a new credit card and transferred a balance to it (interets free)...........I then spent approx £100 on it.

I pay an amount (each month) to reduce it to zero after the interest free period..... However I noticed that they have started to charge me interest only a small amount but interest ! When I phoned they explained that any payment I make go towards paying the balance transfer frist so I am being charged on my £100 purchases.

Question is will I pay interest on this £100 for the next six months :mad:

Mike


When you transfer a balance to another card leave that card alone because the interest free is only on the balance you transfer, when you go over that balance you'll start to be charged interest on the whole balance. I know people who transfer their balances to other cards then keep spending on the one they've cleared off, it's a circle a vicious one at that.

[Mike]

Yes, unless you pay off the transfer + the £100. All of the deals that I have seen work that way - any payments that you make go towards the lower interest debt first. Maybe you could sign up for another card with an iterest free balance transfer deal and pay it off with that? As long as you don't spend anything on the new card you'd be all set.

New card ii is then.................any recommendations on zero fees for tranafers ? I can not find any !

Thanks all

Mike

[r1ch]

Take a at look http://www.moneysupermarket.com/cards/credit_card.asp

It looks like egg are doing 0% on balance transfers and purchases too

---------- Post added at 13:20 ---------- Previous post was at 13:15 ----------

Look out for the handling charge on balance transfers though - it looks like egg is 2% up to a maximum of £50

---------- Post added at 13:27 ---------- Previous post was at 13:20 ----------

http://www.moneysupermarket.com/cards/CardDetails.asp?CardId=327&feature=StandardTrans

Looks liky Clydesdale bank is O% on purchases and Transfers for 6 months and no handling charge on the transfer either

[Pø†øƒGøLÐ]

Take a at look http://www.moneysupermarket.com/cards/credit_card.asp

It looks like egg are doing 0% on balance transfers and purchases too

---------- Post added at 13:20 ---------- Previous post was at 13:15 ----------

Look out for the handling charge on balance transfers though - it looks like egg is 2% up to a maximum of £50

---------- Post added at 13:27 ---------- Previous post was at 13:20 ----------

http://www.moneysupermarket.com/cards/CardDetails.asp?CardId=327&feature=StandardTrans

Looks liky Clydesdale bank is O% on purchases and Transfers for 6 months and no handling charge on the transfer either

I just got a Clydesdale card for that very reason (no handling charge). M&S also do the same.

[LSainsbury]

New card ii is then.................any recommendations on zero fees for tranafers ? I can not find any !

Thanks all

Mike

Egg and Virgin are doing some good deals!

[Pia]

Martin Lewis recommends being a 'tart' and switching between the best 0% Balance Transfer Cards i think.

Some interesting reading here (http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1107182516,76509,) and here. (http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1102335753,51771,)

This guy is a genius, i wish he was my dad:D

[Chris W]

capital one platinum (http://www.capitalone.co.uk/web/raid/templates/cardlist_temp_10_001.jsp?page_id=10200&context_id=2&pageId=10200) if you can get one :)

v good customer service and good interest rates as well.

[etccarmageddon]

I almost just applied for an EGG card but they charge 2% handling fee on balance transfers.

[hoggyspuds]

Martin Lewis recommends being a 'tart' and switching between the best 0% Balance Transfer Cards i think.

Some interesting reading here (http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1107182516,76509,) and here. (http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1102335753,51771,)

This guy is a genius, i wish he was my dad:D

Recommended site for those with money diffs or those who need to squeeze their monthly budget. You can sign up for a weekly news letter also!

[etccarmageddon]

most of the deals are 2% on balance transfers - what a con!

[yesman]

most of the deals are 2% on balance transfers - what a con!
Have a look here (http://www.fool.co.uk/decisioncentre/creditcards/Transfers.aspx?NavLoc=fp_minitable&NavFrom=home&NavTo=cards), there may be something that suits your needs, but remember, read the small print.

[Wicked_and_Crazy]

the trick to this is to poen a new card that gives interest free on balance transfers. Transfer your balance from your exisiting card to your new card and keep using the exisiting card. End of the next month transfer your new balance on your existing card on to your exisitng card. Keep doing this during your interest free period and at the end of the free period, pay off the full balance on the new card.

this way you get interest free on your purchases too.

Morgan Stanley give you 6 months interest free on balance transfers and purchases during the first 6 months. Thus saving the faffing around.

The company you have a card from are a bit dumb in that they benefit when you using the card and not from the balance transfer however they are detering you for using it if you want the interest free on the balance transfer

[LSainsbury]

I almost just applied for an EGG card but they charge 2% handling fee on balance transfers.


They didn't on mine...perhaps it's becuase I've been ac customer for a few years!

[etccarmageddon]

lloydstsb and marks and sparks appear to be the only 2 that offer balance transfers at zero % without 2% cheeky con charge. I attempted to sign up with tsb on saturday night but gave up due to the effects of a glass of red!

---------- Post added at 13:40 ---------- Previous post was at 13:38 ----------

no hang on lloyds charge a 2% fee - must have been hsbc!

[TheBlueRaja]

Amazons credit card do 0% for 6 months on purchases and balance transfers, no fee.

Clicky.. (http://www.amazon.co.uk/gp/slides/cc-apply-jo.html/ref=cs_hbosapply_/202-6257229-1271804/?tmccode=12)

Great rates
- No annual fee
- 0% p.a. for 6 months on purchases and balance transfers
- typical 12.9% APR (variable)
- 1500 (£15 value) free loyalty points when you make your first purchase. More info.

[etccarmageddon]

cheers, I've just applied for HSBC with is 9months at zero % and no silly 2% handling fee! the only downer is if you make purchases on it then your monthly payment goes to the balance transfer first - so obviously this card is for tarting only!

[Xaccers]

The other important thing to check with these 0% offers is the "go to" interest rate.
0% on everything for 9 months is great, but not if you end up with 17.9% at the end of it!

Didn't NatWest release a 5.4% on balance transfers for life card?