Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Can somebody quickly explain what it means when it says 0% on balance transfers but 2.9% fee for balances transferred within the first 60 days? I am sure it means that I will have to pay 2.9% of whatever I transfer, but that seems alot?
Just applied for a Barclaycard Premium Credit Card as my Santander Zero CC has just run out of the 0% period and I want to transfer the balance.
Cheers!
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John
Member
Registered: 30th Jun 03
User status: Offline
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You are charged 2.9% of what you transfer, which is added onto your overall balance.
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gtitim
Member
Registered: 13th Feb 05
Location: the boonies
User status: Offline
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Will cost you £2.90 for every £100 you transfer over, but that balance will then be at 0% rate
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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Thanks very much 
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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You will however get charged interest on the 2.9% you transfer.
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John
Member
Registered: 30th Jun 03
User status: Offline
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?
He won't. He'll get charged a one off fee of 2.9% of the amount he transfers, them it will be interest free for X months.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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0% interest, 2.9% fee.
So you if you transfer £1000, you pay £29 in fees.
Depending in the exact wording, this fee may also be not included in the interest free portion so will continue to accrue interest as you pay off your original grand.
Depends if the fee is counted as part of the BT or as a purchase on the card. Worst case is you'll be at 20% odd for it and not be able to settle it because the interest free balance is preferred for the repayments.
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John
Member
Registered: 30th Jun 03
User status: Offline
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I've never seen one that does that, although I'm sure it is possible.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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Not sure I have but it's something to check.
Its usual to prioritise the 0% portion though so if you buy something on the card you don't actually make a contribution to the chargeable balance until the rest is paid off.
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Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
User status: Offline
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I thought the new law stated that payments to your card had to pay off the highest interest rated money.
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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quote:
Originally posted by Dan
I thought the new law stated that payments to your card had to pay off the highest interest rated money.
I also thought this, quite how you can get a credit if you are too thick to work out paying off the higher interest balance first is a mystery but yea I thought it was a law as well now
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Graham88
Member
Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
User status: Offline
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The last 6 or 7 posts have completely lost me now tbh
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Rob_Quads
Member
Registered: 29th Mar 01
Location: southampton
User status: Offline
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They are to do with what gets paid off when. Previously most cards worked like....
Balance transfer £1000 @ 0% for 12 months
Go buy a toy £100 @ 20%
When you made payments you have to pay the whole £1000 off before you start to pay the £100 i.e. you will be paying the 20% rate for the long time.
Now the law has changed so that the highest rate purchases will be paid off first i.e.
When you made payments you have to pay the whole the £100 off first as its at 20% and then once thats finished you will then start to pay the £1000 off.
Its how the CC companies made a lot of money by getting people to do balance transfers and then also spend money on a card at a high rate.
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