How does money transfer work with Barclays?

[UserError]

Hi All,

Barclaycard are offering me a 0% money transfer offer where I can get 1.5 Avios per £1, so I’m considering doing it. However, how does it work on day-to-day spending.

For example;
Every month I use my Barclaycard and pay it off 100% each month.

Let’s say I transfer £1,000 across.
Then I spend £500 in a month.
How does I know what I need to pay a month in terms of the £500 I have spent, and the money towards the £1,000 I have transferred.

I hope that makes sense!

[NorthernLass]

Firstly, is the fee justified by the number of avios you’ll earn?

It will be in the Ts & Cs, but normally with balance or money transfers any payment goes towards the debt which attracts the highest interest rate, so people can find themselves with extra charges on other outstanding balances.

[John]

Well you certainly have to pay off the £500 of purchases, and you have to read the small print about the £1000.

With some credit cards, interest is only waived when you pay your balance in full and on time. This means that you can’t carry a balance at all even if some of the balance is on a promotional 0% interest rate, otherwise you will pay interest on anything else.

Personally I have always used separate cards for 0% promo offers and regular spending. However I see that for the barclays avios cards, Term 7 says:

When we charge interest
If you pay your main balance (excluding any promotional balance with a 0% interest rate) plus any instalment plan
payments due for that month in full by your payment due date, the following will apply that month:
• We won’t charge interest on new transactions that have been added to your account since your last statement.
• We will only charge interest on your outstanding balance from your last statement up to the date of your current
statement.

So it may be OK, however the consequences of getting it wrong may not be worth a measly amount of avios.

Also as Anna says if they charge a 1.5% or higher fee for the money transfer that already negates the 1.5 avios unless you want to stick the money in an interest-bearing account and do more complex calculations