Balance Transfer Credit Card

Haha Hihi Hoho on 15/12/2019 - 01:55

Hey Guys.

Sooo long story short, during my wife's pregnancy, we found out that it will be a high risk pregnancy. as a result we decided that to go private and had to go through a couple of procedure to ensure that everything goes well. we had to use my wife's credit card to pay most of the procedure and at the same time bought new babies stuff. It was getting out of hand and now i realized i wont be able to pay 4000 dollar next month.

a friend of mine suggested to get a balance transfer credit card with 0% interest to get us some room to breath, while we get the baby settled and i can go back to 2 jobs lates. is this the right way to use a balance transfer credit card?

looking at the Bankwest Breeze Mastercard, it says "0% p.a. for 26 months on balance transfers with a 2% BT fee (Reverts to 12.99% thereafter)". does that meant if I dont make any repayments at all for 24 months, than i pay the whole 4K in month 25, i wont be charged interest at all? hell if i can pay it in full in month 11, i dont even have to pay for next years fee? is this logic correct?

considering that the debt is under my wife's credit card, is it possible to transfer it to my credit card? or does it have to be under her name?

Sorry for the stupid question, i was so super anti credit card, but it was an emergency and i had to go through the dark path and i am not sure where it leads.

Financial

Comments

  • jimbobaus on 15/12/2019 - 04:02
    +4

    You can pay it as quick as you want (you will have a minimum payment every month ) but you need to have cleared the balance within the balance transfer period or the remainder of the transferred amount will start to incur interest at end of the BT period.

    Also be aware bankwest have a fine print condition.
    If you spend $1 on the cars while your balance transfer is active the ENTIRE balance becomes due at next statement or the entire amount starts incurring interest (as in making a purchase will end the balance transfer 0% interest if any remains)

    Most banks require the new card and the old card to be in same name.
    Some do not. But bankwest from my exp do require the old card to be in same name for the balance transfer.

  • waving on 15/12/2019 - 13:34

    https://www.bankwest.com.au/content/dam/bankwest/documents/l…
    Jimbobaus - Can you highlight where the fine print you mentioned is?

    Yes - Any purchases made with an existing balance transfer amount will accrue interest from the moment you purchase them, but the entire balance transfer amount does not become due or start accruing interest.

    • jimbobaus on 15/12/2019 - 13:54

      They may have changed the policy/terms since I was a bankwest customer. Closed my card earlier this year. But I know I got caught out and my BT became due instantly cause I made a small purchase.

      • waving on 15/12/2019 - 18:55
        +1

        Usually it is if you miss a single payment or go over your limit that it then becomes due.
        Never heard of a purchase triggering that before. That goes against what the credit card companies want you to do.
        Ie. They want you to balance transfer, then continue to purchase on it, as you don't have access to any interest free days on your purchase amount, plus they hope you reach the end of the 0% period and still can't pay it off.

        • jimbobaus on 16/12/2019 - 11:08

          Lots of banks did it, in fact Choice a while back had a report calling out the banks who did it (Westpac used too,STG,.BOM etc, Citibank and Bankwest were the main culprits)

          It works in banks favour, they get the increased interest quicker (not after 26m etc)

          • waving on 17/12/2019 - 13:33

            @jimbobaus: Hi Jimbobaus,

            I'd be really interested if you can source the report. Sounds really dodgy.

    • waving on 15/12/2019 - 13:42
      +1

      I'd say this card will best meet your needs and give lowest fee whilst still offering long balance transfer.
      https://www.finder.com.au/anz-first-credit-card

      • Haha Hihi Hoho on 15/12/2019 - 14:35

        Thanks for the info, but it seems that i will have to go through the personal loan way anyway, there is 1 more procedure we need to do in February which will cost a lot. if i add it to my balance transfer credit card, i think i will be charge with high intererest rate?

  • [Deactivated] on 15/12/2019 - 14:40
    -1

    Should manage your financials better. Credit card debt is bad debt.
    Talk to your families see if those banks can lend you at minimal amount.

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