transferring cc debt to 0% provider

[desperatedan]

Hi there,

great site, btw.

I have a question about transferring a cc debt from my current provider, AIB, to one of the 0% teaser cards. This is €2900.

I see UB Zinc offers a 9 month 0% transfer rate and 0% on purchases for 9 months also.

My question is, will my monthly payments go to paying my transferred amount, or will it be devided between purchases and the transferred debt.

Just don't know what the best strategy is.

Any ideas greatfully accepted!!

thanx

 

[JPSaltee]

Why not ask AIB if they can give you 0% interest? That is what i did with BoI and they gave it to me!

 

[CCOVICH]

You need to read the ts and cs of the card in question. AFAIK, the order is:

1. Cash advances
2. Purchases
3. Balance Transfers

Or at least that is how it was applied to my AIB card when I transferred the balance from a BoI card.

Be sure to check carefully!

 

[NiallA]

I would have thought your payments would have gone to pay off the balance transfers first, so the new credit card company can make money on your new purchases, charging you interest.

 

[CCOVICH]

If the 0% rate also applies to purchases, that doesn't stand up (as is the case for the Zinc card).

I don't have ts and cs or a recent bill to hand, but I am going on what I remember from a balance transfer I did 6 months ago.

The fact that I paid enough to clear any purchases every month and did not pay any interest on the balance transfer suggests that the order I have outlined above is correct, but there can be differences between providers, and I am open to correction if anybody can quote from card provider literature.

 

[desperatedan]

thanks for all the answers folks.
i was gettin desperate there for a while

CCOVICH

Thank you particularly, you seem to have already done this. I will check out the T&C's before taking the plunge, but it seems to be a no-brainer, at least for the 9 months interest-free period.

I see you did this 6 months ago, any chance you may be considering a further move, to avail of another interest-free period with a different provider? or have you paid off in the 6 month period? (sorry for being so nosey, but it will help in my decision)

Why not ask AIB if they can give you 0% interest? That is what i did with BoI and they gave it to me!

Were you transferring to a different type of AIB card? How long of an interest-free period did they give you, and did you have a largish out-standing balance? built up over what period of time?

 

[CCOVICH]

thanks for all the answers folks.

CCOVICH

Thank you particularly, you seem to have already done this. I will check out the T&C's before taking the plunge, but it seems to be a no-brainer, at least for the 9 months interest-free period.

You're welcome, and yes be sure to 'read the small print' etc.

I see you did this 6 months ago, any chance you may be considering a further move, to avail of another interest-free period with a different provider? or have you paid off in the 6 month period? (sorry for being so nosey, but it will help in my decision)

The main reasons why I changed were (in order of importance)

1. Poor service from my previous cc provider
2. My current account is with AIB so I like the fact that I can now view my balance online and pay the bill in a similar (easier) fashion
3. I had built up a balance, but this was in anticipation of transferring, and I wouldn't want to go down the route too many times in the future.

So, no I don't intend to 'tart' (switch cards frequently tio avail of 0% rates) anytime soon. But this 'strategy' was discussed here before, so you may want to do a search. I wouldn't advise it myself as I feel it is risky (letting balances build up requires discipline if you are to repay them on time and without penalty, and may not be a good idea for everyone).