credit cards

[nannon]

Hi - please can someone explain some stuff to me in laymans terms??!!
I have an egg card with �500 and have applied for a HSBC card which has been approved for �2000.

I don't want two cards i dont think (do i??) so thought can i pay off the egg one with the new one? Will i be charged for this?

It says i have to pay a minimum of 3% of my balance on card each month (please could someone tell me how to work this out - i'm SO not good at maths!!)


Also - it says 0% interest on purchases for three months, does this mean that after 3 months my minimum paymet will go up to 15.9%?? Or that if i purchase something after three months i get charged??

Thanks in advance

[bednobs]

you can do a balance transfer from the egg card to the new one, but you will have to pay a fee to do that. Check what interest rates they charge for balance transfers too.
The 3% is easy to work out - divide your balance by 100 and times by three to get the minimum payment. They will send you a bill and tell you how much to pay anyway
0% for 3 months means just that - if , for example you got your card 1st august, you can buy stuff, and just be charged for the stuff, no interest till november 1st. On nov 1st you will start paying interest. If you bought something nov 2nd and after, interest would be charged immediately (well, you next statment)

[nannon]

ok - thank you!

So iof i had �1200 on there when the three months are up i'd have to pay 15.9% of that balance??

Sorry for being so thick!!! ;o(

[nannon]

which would be �190 per month for minimum payment????!

[Ethel]

If you have �1200 of debt on your card the minimum monthly repayment at 3% would be �36 per month.

15.9% is the interest , not the minimum repayment. On �1200 the interest would be �190.80 over the year, so �15.90 per month, strangely. This is approximate, by the way.

So in month one you will pay �36, but �15.90 will be added to the bill - so the bill is reduced by �20.10.

Month two the bill will be �1179.90 plus interest, which will be very slightly lower. And so on.

The three months 0% interest simply means that no interest will be charged for the first three months, but you must still make the minimum payments.

[nannon]

ah i see! Thats brilliant - thank you very much!!!!