Credit cards:Interest on Life of Balance transfers?

Question

I applied for a Barclaycard, as it had an offer of 5.9% for the life of balance transfers. Having spoken to customer services there, with the intention of transferring a balance from another card, they told me that the 5.9% offer meant that the interest would be charged on the full amount I transfer, until it is all paid off, even if I have paid some off. So if I transfer £1000, and pay off £100 after a month, I am being charged interest on £1000 still, rather than £900. Have I understood this correctly, and is this usual practice?
Thanks
John

Answer 1

That might be the case but you're right, it sounds a little off. The understanding I have for "life of the balance" transfers is probably what you thought initially -

the rate of 5.9% won't be raised or lowered for the amount you transferred. Now, if you make additional purchases the rate may be different but never for the balance transfer.

call them back and/or read the fine print.

Answer 2

Not usual. Are you certain that you understood that correctly?

Often your scenario means that the transfer would be subject to 5.9 % interest until it was paid, not subject to change, up or down.

Bear in mind the "catch" in these.

If you make any additional new charges, which no doubt carries a higher interest rate on the card, your payments will FIRST be applied to the transfer, at the lower interest rate.

This means that for however long it takes to pay off the transfer, any new charges will just sit there accumulating the higher interest rate, compounded. No amount will be applied to those charges until the transfer is paid off.

YUCK! YUCK! YUCK!

Answer 3

Blue Cash from American Express®

This credit card issued by the credit card giant American Express has No annual fee. Coming to balance transfers, the Blue Cash from American Express has a low balance transfer rate. The APR for balance transfer is 4.99% fixed for the life of balance. Another good feature of the Blue Cash from American Express is that it is a 0 Intro APR credit card. It has a 0% intro APR rate for 6 months. The reward program of Blue Cash from American Express gives Up to 5% Cash Back with Unlimited Cash Rewards. This entitles the credit card holder to earn an unlimited cash back on his spendings. Apply online at: http://www.credit-card-gallery.com/American_Express.html