Credit card advice ....

bristolpete

Silly question, but I use my card sparingly.

Last week I was offered a balance transfer of 0% for 39 months which I took. Transferred across the amount. I set up a minimum payment + £5 option as it is literally less than £20 or so a month iirc, but have a question. As I pay off the card, will the amount on it keep coming down thus the minimum payments drop in relative terms or do cards lock the minimum at a percentage. Does this make sense. Cannot ask customer service as all actioned online. Is minimum a rolling figure ? Hope that makes sense.

Thanks !

Pete.

pblakeney

Advice in this case - Pay it all off in equal payments (balance/38) without adding to it. You usually pay interest on future purchases. Then get a new cash back card and pay it off in full every month.

graeme_s-2

I think it varies from card to card. In my experience the minimum is usually a percentage of the total owed or a minimum fixed amount, whichever is smaller. So it might be 1% of the outstanding balance or £15.

So depending on what your % minimum payment is, how much you have on the card, and what the fixed amount minimum is, you may see the minimum amount continue to reduce until you hit that minimum fixed amount, and then it will stay the same.

cooldad

At £20 a month, unless your transfer was less than £780, you will not pay it off within the transfer period.

bristolpete

PBlakeney wrote:

Advice in this case - Pay it all off in equal payments (balance/38) without adding to it. You usually pay interest on future purchases. Then get a new cash back card and pay it off in full every month.

Thanks - I calculated that and the payment mirrors that, but I did wonder if it is a classic the longer into repayment the more the minimum drops type thing. Not a big deal as not huge amounts but % free nice.

Thanks for all replies.