Can you transfer a balance to another card before you actually receive the statment for that period's billing? ie if I make a purchase on a card, can I transfer that balance off that card as soon as the card registers the purchase? Or do you have to wait until the statement comes through, when it tells you our minimum payment etc?
Credit Card Balance Transfer question.
- Thread starter banja
- Start date
As soon as you make the purchase it is on the balance so you can pay it off which is exactly what happens when you transfer it.
It depends.
If you have a balance on your card from the previous statement the transfer might go towards that first. Payments or transfers always go towards the highest interest balance on a credit card but this only applies to balances which have been included on a statement.
It can catch you out if you've got an interest free balance for example:
Get a card with a 12 month interest-free promotion on purchases (this will usually apply to purchases in the first 90 days or something).
Make £3000 worth of purchases within the first 90 days.
Pay off £250 per month against the interest-free balance
After 4 months, your balance is £2000 but you accidentally use the wrong card for a purchase and spend another £400 on this card
Immediately balance transfer £400 onto the card
This £400 will likely go against the £2000 interest free balance of the card because the new purchase hasn't been statemented yet.
You'll then be charged interest on some of the purchase price because the next monthly £250 payment wont cover it so there's an outstanding balance on the card which isn't included in the interest-free promotion
In some cases you could lose the interest-free promotion on the entire balance if you do this.
If you have a balance on your card from the previous statement the transfer might go towards that first. Payments or transfers always go towards the highest interest balance on a credit card but this only applies to balances which have been included on a statement.
It can catch you out if you've got an interest free balance for example:
Get a card with a 12 month interest-free promotion on purchases (this will usually apply to purchases in the first 90 days or something).
Make £3000 worth of purchases within the first 90 days.
Pay off £250 per month against the interest-free balance
After 4 months, your balance is £2000 but you accidentally use the wrong card for a purchase and spend another £400 on this card
Immediately balance transfer £400 onto the card
This £400 will likely go against the £2000 interest free balance of the card because the new purchase hasn't been statemented yet.
You'll then be charged interest on some of the purchase price because the next monthly £250 payment wont cover it so there's an outstanding balance on the card which isn't included in the interest-free promotion
In some cases you could lose the interest-free promotion on the entire balance if you do this.
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