Just a word of warning re how costly this credit card can be.

In Feb I signed up for the Amex BMI Plus card (£85 annual fee). I am a person who fortunately pays my balance every month. The card offered zero interest on purchases until June, not really relevant to my situation.

Where I have slipped up big time was taking up an offer of a balance transfer, 0% until Feb 2012. We had just come back from holiday and paid our hotel bill on another cc. So, I thought I would take advantage of the interest free until Feb 2012. Did a balance transfer of £1,000 which cost 3% (£30)

I thought (and this is where I kick myself) as long as I keep the balance below £1,000 until Feb 2012 I would not pay any interest. WRONG. Was shocked to see interest charges on my statement last month.

I phoned and the girl I spoke to said it was was difficult to explain but if you do a balance transfer you should NOT use the card for purchases as well. Well why did nobody tell me that?? Basically what has happened is any payments I have made have been offset against the balance transfer rather than the purchases so now even though my balance is below £1,000 I am being charged interest on the purchases

I am so angry with myself for not realising this. I paid off my balance in full (yes the supposed interest free until Feb 2012) this month, just checked my statement now and been charged another amount of interest.

So basically this card has cost me £85 fee, £30 balance transfer fee and £25 in interest. Needless to say I sent off a complaint letter 10 days ago and await a reply.

Just wanted to warn others in case anybody else was thinking of doing a balance transfer.