Credit card repayment/interest question

I recently switched credit cards to a 0% balance transfer card. I transferred a balance of £1k which is 0% til july 2015. I have since made £300 in purchases. When I start repaying the balance will I be charged interest on just the £300 spent on purchases (@19%apr) or the whole amount of the outstanding balance?

Probably on the whole lot - The big piece of paper that you signed before you received the card will have the details on it.

From my experience of the cards I have used in the past, you will only pay 19% APR on the purchases, any repayments you make will pay off the highest APR first, i.e. the purchases and then the 0% balance transfer.

All my cards are the opposite. You repay the lowest APR first so you'll have your first £1000 allocated to your interest free balance and the £300 purchases will continue to cost you until you you've paid the balance off. Best to check your own Ts&Cs.

The big piece of paper that you signed before you received the card will have the details on it.

I read that before I posted and it's still slightly ambiguous...

you will only pay 19% APR on the purchases, any repayments you make will pay off the highest APR first, i.e. the purchases and then the 0% balance transfer.

...this is what is suggested by the wording in said big piece of paper but I'm not completely certain and it's a hard question to pose to google.

Who is the card provider? With the MBNA card I current have, the online statement breakdown the various rates and amounts:

/attachments/84097

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MBNA also, I haven't had a statement yet so I was just trying to work it out ahead of time

I think you've made a mistake by making purchases on your balance transfer card. You'll probably end up having to repay the whole balance off at 0% every month racking up 19% interest on the £300 month on month because they will take your monthly payment off the lowest interest rate first.

Normally they allocate it to the lowest percentage first meaning you have to pay off the whole balance to avoid paying interest.

However the below would suggest otherwise. Best to give them a call to confirm

Quote:
you will only pay 19% APR on the purchases, any repayments you make will pay off the highest APR first, i.e. the purchases and then the 0% balance transfer.

I think you've made a mistake by making purchases on your balance transfer card.

I beg to differ. As long as he plans on paying off the £300 purchase amount in full. I use my card for paying off a kitchen on balance transfer, and also for petrol/food shopping. Making sure I pay off the purchases in full each month, (apart from this month where I fucked up and it cost me an extra £3) I have yet to pay any interest apart from the initial 1.5% balance transfer fee.

Payments to your account will reduce balances with the highest interest rates before those at lower rates, at the time the payment is applied. For full details on how we allocate payments, please refer to your terms and conditions.

Taken from my MBNA online account.

As Monster has said, if you want clarification give them a bell.

end.

http://www.which.co.uk/news/2011/01/new-rules-to-speed-up-payment-of-credit-card-debts-240548/

Rules changed in 2011 to speed up payment of credit card debts

I was going to post that, yeah if your card provider is still on 'negative payment hierarchy' you can report them to an ombudsman I believe.

Anyway, gave them a bell and interest will indeed only be charged on the purchase balance, cheers guys.

bump.

got a card for the first time in May... only a £250 limit.

used it and been paying off my debt promptly (even before teh deadline) each month. My credit rating has gone down... wtf?

If you have 6 months of strong credit history, you need to ask for the limit to be raised.

in a month or so I will... but how come my rating dropped?

which card is it?

Wondering if a small limit CC is detrimental to your CR compared to a large limit CC (bank doesn't trust you vs. bank does trust you)

barclaycard platinum visa

Also, there is no such thing as a credit rating. How are you measuring it anyway?

barclaycard have a module on their website with the experian score... I know it's not too much to worry about, just wasn't expecting it to do down!

My limited understanding of Credit Ratings is that they give financial institutions an indication of how much money thay can make from offering you credit.
Interest is the biggest money spinner, but shrewd thrifty credit card users pay off the balance each month, and they are to be encouraged because they do not default.
The next biggest money spinner is the commission the bank makes from each transaction. If you are a less than £250 per month credit user, you may be below some arbitrary threshhold of profitability. This may explain your declining CR.

I'm a relative credit card newb so wonder if someone here can help.

To avoid paying interest do I have to pay the balance off within a certain number of days from the transaction date or the credit card billing date?

Put about £600 of hotels on my card (as it has no foreign transaction fee and hotels are abroad) and my wife gave me half which I went to the bank (Santander) and paid over the counter without issue. I've just logged on to pay the remainder from my debit card and it won't let me, I get a message saying

"You can only make payments up to the value of your outstanding balance + £100. Please choose a lower payment amount".

Each credit card provider is different but for all the cards I currently have, you have a statement period, which is the period in which you make transactions, once that ends a statement is delivered either by post or online, and on that you’re given a date which it is due. You have to pay before the end of that day to not accrue interest. Weirdly I pay by direct debit and the date of payment always seems to be 2-3 days after the payment due date but I incur no interest or penalty.

It sounds like you’re trying to pay more than the balance on the card.

Sorry, the actual answer to your question would be x days after your billing or statement date. Your statement or bill should say how many days you have.

Found a bit that says:

Next statement - 16 Mar
Next payment - 11 Apr

So I guess that explains it.

And actually, I remember the lady in the bank saying something about how long you had to pay would depend on when in the month the transaction was made.

The statement on the 16th will be the first one.

Balance on the card is £311.36 and I was trying to pay £312 so well within the +£100 I mentioned above which was what was confusing me but it's just coz I've not passed that billing/statement date yet. I think.

If you’ve not yet received the bill for the month in which the transactions were made, then you’ve got plenty of time.