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Paying off a credit card using another credit card?
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Nice_guy
Posts: 124 Forumite
Hello everyone!
Just a quick question...... Is it possible to pay off a credit card using another credit card?
I have in the region of 6k on my Tesco CC which is 12 months at 0% on new purchases. The 6K I have run up is safely stashed away and offsetting against my mortgage, thus saving me mortgage interest.
Now at the end of the 12 month offer I would have simply paid the card off and started using a new 0% purchase card. But by doing this I would lose my 6K and effectively be starting again.
Now the easy option would be to balance transfer the 6K onto the new card but this is not an option due to the balance transfer charges applicable. I know about the 0% on balance transfers for the virgin card but my balance would not need to be transferred untill approx 9/10 months time.
So my idea basically revolves around paying the last statement of my Tesco card with a new credit card with is also on a long term 0% deal. The immedate thought with this is how would this transaction be classed? By paying off one card using another equals a new purchase?
However when I recieved my Tesco card the first 'purchase' I made was to paid off my last Asda credit card statement. This worked fine no questions asked, I simply rang Asda and paid my last statement using my Tesco CC. From looking at my statements Tesco have not charged me any interest for this transaction so I can only assume it has worked! The only negative I can forsee is that the balance I cleared from the Asda card was £170+ this time I'll be looking to clear 6K - might set some alarm bells off!
Thoughts?
Just a quick question...... Is it possible to pay off a credit card using another credit card?
I have in the region of 6k on my Tesco CC which is 12 months at 0% on new purchases. The 6K I have run up is safely stashed away and offsetting against my mortgage, thus saving me mortgage interest.
Now at the end of the 12 month offer I would have simply paid the card off and started using a new 0% purchase card. But by doing this I would lose my 6K and effectively be starting again.
Now the easy option would be to balance transfer the 6K onto the new card but this is not an option due to the balance transfer charges applicable. I know about the 0% on balance transfers for the virgin card but my balance would not need to be transferred untill approx 9/10 months time.
So my idea basically revolves around paying the last statement of my Tesco card with a new credit card with is also on a long term 0% deal. The immedate thought with this is how would this transaction be classed? By paying off one card using another equals a new purchase?
However when I recieved my Tesco card the first 'purchase' I made was to paid off my last Asda credit card statement. This worked fine no questions asked, I simply rang Asda and paid my last statement using my Tesco CC. From looking at my statements Tesco have not charged me any interest for this transaction so I can only assume it has worked! The only negative I can forsee is that the balance I cleared from the Asda card was £170+ this time I'll be looking to clear 6K - might set some alarm bells off!
Thoughts?
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Comments
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You can only pay one card off with another in two ways - 1 draw cash off one to put on another (not recommended horrendous interest charges from day 1) or 2 a balance transfer - you know about the fees. Depends really on whether your net credit interest is more than the balance transfer fee - if not then it is not worthwhile.0
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Plug your numbers into this 'stoozing' profitability calculator...Thoughts?
http://www.stoozing.com/calc.php0 -
Thanks for the replies guys. I too thought that there were only two ways in which a new card can be used to pay off the original card. However as stated in my opening post I paid off my Asda CC using my new Tesco CC. This payment must have been classed as a 'purchase' as I was not charged any balance transfer fee by Tesco!
Could I have stumbled upon something new?0 -
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I think I got lucky to for the record, but still think this could be worth a try. What's the worse that would happen? The new card provider would not class it as a puchase and therefore you will have 30 days to pay it off to avoid interest charges. I would have had to pay if off anyway as my 0% offer would have finished on the original card.
I believe my Asda card was run by GE, but I remember having a notification of it moving to Santander. I paid it off May if that helps.0 -
I've paid a Frizell credit card bill twice using another credit card so is does work with some. Athough it was only the monthly payment the principle is the same.'Yaze whit yeh hive an ye'll niver wahnt'
(From Mae Stewart's book 'Dae Yeh Mind Thon Time?')0 -
Classed as a cash advance, if Asda assigned such a Merchant Category Code (MCC), meaning a 3% fee and interest from day one.What's the worse that would happen?
There's (generally) no interest free period on BTs and cash advances.The new card provider would not class it as a puchase and therefore you will have 30 days to pay it off to avoid interest charges.0 -
Thanks auntymabel. Can you remember what CC's you used?0
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YorkshireBoy wrote: »Classed as a cash advance, if Asda assigned such a Merchant Category Code (MCC), meaning a 3% fee and interest from day one.There's (generally) no interest free period on BTs and cash advances.
Interesting. I was under the impression that a cash advance is when an ATM is used to actually withdraw cash using the CC. Thanks for the heads up - still think this is worthy of more investigation.0 -
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