0% Balance Transfer and 0% Purchases on Credit Card

tajid on 10/04/2017 - 22:37

I understand how both work independently but not together.

So for example this deal comes with 12 month 0% BT and 6 month 0% on purchases (https://www.ozbargain.com.au/node/298462)

I am trying to see how to take advantage of both without being charged 20% interest.

Assuming BT is 95% of 15K = 14,250, is below scenario correct?

Balance after BT = 14,250/15K
To get the bonus points, I need to spend $2,500, so I need to deposit $1,750 into it then spend the minimum $2,500.
Then the $14,250 - $1,750 = $12,500 is 0% for 12 months (or is $14,250 still 0% from BT?).

What about the $2,500 spent? still interest free for 6 months?

Then say I make a payment to the credit card. Does this go towards the BT amount or the purchases? Read a somewhat related post but still unclear (https://www.ozbargain.com.au/node/284653), so if I make the payment before the end of the billing period, the payment is offset against the purchases?

Any explanation is appreciated.

Financial

Comments

  • [Deactivated] on 11/04/2017 - 07:59

    Payment goes to the one with the greatest normal interest outside the offer, and that is usually cash advances (which includes BT). So, you still need to clear the entire BT before your purchases are paid off.

    I'm not sure if all of the banks will let you put your credit card in positive balance though.

  • Munificent on 20/04/2017 - 20:17

    I was wondering this too. Does anyone know for sure?

    • tajid on 21/04/2017 - 09:28
      +1

      I spoke to a credit card team in St George and they said payment will be allocated to the highest interest rate first. If both 0%, will be applied equally.

  • coolsteps on 24/04/2017 - 01:15

    thats good to know if St George will apply it to both b/t and purchases balances but im not to sure in reality when the 0% purchase term ends i think you may be hit with interest. does anyone know if St George will allow you to keep the 0% balance transfer if you do a product transfer and convert account to a no annual fee card or will you loose it and need to reapply for a b/t?

    • tajid on 26/04/2017 - 12:22

      Call em up and they'll happily tell you the last date of you 0% and anything else you need to know.

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