Question about Credit Transfer and Interest Free Credit

[BaZmO*]

Hi,

I currently have my credit card maxed out and on the advice of a friend I decided to apply for a new credit card and have the balanced transferred from the old card to the new card. Doing so, I'll be able to avail of their 0% APR on the balance transfer for 6 months, which is cool cos I have my SSIA coming to me at the end of April which will clear off my CC.

Question is, do I still have to pay a minimum amount off the new card every month? And also, the card says that it's 0% on new purchases for 6 months. Does that mean that any new purchases just work like an interest free loan for 6 months?

Thanks in advance.

B.

 

[paddyodoors]

Yes you will still need to pay a minimum balance and yes it is like an interest free loan. Would the minimum payment cause you problems?

If so this could indicate you have a very large amount outstanding?

In which case you should note that, you may not get the same large limit on the card - So you may max out your card with the transfer and thus not be able to make any more purchases.

I was looking at MBNA recently - (although 1.9% for first 6 months) you can transfer cash to your current account so dwefinately a short term cheap loan. But its not for no reason, they reel you in, then after 6 months when you are large amounts owing, they then whack up that % charge!!!

If you have a pending SSIA to clear off, then you should be laughing

Paddy

 

[BaZmO*]

Would the minimum payment cause you problems?

Not particularly. I was more kind of wondering, although I did have an inkling that I would have to pay a minimum amount. I'm just going mad that I only thought about a balance transfer now and not a few months ago. I could've gotten the full benefit of interest free until I paid off the balance with my SSIA.

If so this could indicate you have a very large amount outstanding?

In which case you should note that, you may not get the same large limit on the card - So you may max out your card with the transfer and thus not be able to make any more purchases.

I was looking at MBNA recently - (although 1.9% for first 6 months) you can transfer cash to your current account so dwefinately a short term cheap loan. But its not for no reason, they reel you in, then after 6 months when you are large amounts owing, they then whack up that % charge!!!

If you have a pending SSIA to clear off, then you should be laughing

Paddy

Nah it's not that much, well relatively speaking, about 4.5 to 5K.

I'm not sure how much of a credit limit they'll be giving me, but I'm sure I'll know soon enough.

Thanks for your help.