Free Cash From Credit Cards Discussion Area

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  • Bond_2
    Bond_2 Posts: 28 Forumite
    Once the 6-9 month period of 0% interest has expired (and you have paid off the balance), does it help your credit rating to cancel the credit card, or does it make no difference?
    What goes around - comes around
    give lots and you will always recieve lots
  • Galstonian
    Galstonian Posts: 1,292 Forumite
    Yeah, I thought it was a misprint at first!

    I've had other percentages too, between 2 and 5 is "normal".

    As for cancelling cards this is discussed at length in other threads. The answer is "maybe". If you use the Search facility you can look for old threads quite easily.
  • gritts
    gritts Posts: 527 Forumite
    Martin, I've a problem. I was accepted for the Mint card but when I mentioned to the lady on the Internet Applications line  (0845 300 0059 )about Super balance transfers she said that Mint did not do this. 'If you wrote a cheque to your current account it would be treated as a cash withdrawal and is charged accordingly'.


    She was positive the type of thing is not possible with Mint?!??!

    I know she was on the 'applications line' but surely she would at least know about what a Super balance transfer was??

    **Follow up**

    I called the actual card helpline. I think we are talking 'Convenience Cheques'. Now I believe this is possible!
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    I dont have any dept (exept mortgage) and no credit cards.Do I apply for one card,ask them to put cash (up to the limit) into my bank acc. and then wait the 0% interest period before applying for the next one to transfer it into ???
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    I dont have any dept(exept mortgage)or credit cards.
    Do I apply for one card and ask them to put cash into my bank acc. and then wait 0% interest period before applying for another one to make the B.T ???
  • VJG_2
    VJG_2 Posts: 7 Forumite
    I'm in pretty much the same position as Chris Lee. But my understanding is that when you apply for a new credit card, your initial credit limit is very low. Are you able to negotiate this with the company?

    I have recently apply (via the links) for the Am Ex Blue card to get the cash back, but still waiting to hear about that one.
    something missing
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    Just looked at the MBNA and Abbey card t's & c's. Minimum monthly payment is in both cases:

    "By the payment due date shown on your statement each month, you must pay:

    2.25% of the balance shown on the statement (as long as this is at least £5); or
    the charges for Payment Protection Cover, plus interest charged on the statement and fees, plus £5; or
    the balance on the statement if this is less than £5;
    whichever is the least."

    So, by my reckoning, if you put 8k into your account for 6 months, you have to pay £180 per month. The interest gained on 8k in 6months at 4%p.a is only about £160. I'm no accountant, but I can't see a gain there. Could someone explain?
  • lisyloo
    lisyloo Posts: 29,615 Forumite
    Name Dropper First Anniversary First Post
    I'm no accountant, but I can't see a gain there. Could someone explain?

    Yes, the minimum payment is not an interest charge it is actually a payment.

    So in your example at the end you would not owe £8K you would owe £7820 (because you've paid £180).

    Therefore the £160 is all gain (apart from any income tax you may have to pay on savings if you don't have a flexible mortgage).
  • Bond_2
    Bond_2 Posts: 28 Forumite
    Just to emphasise Lisyloo's point above:

    At the end of 6months you would have paid in minimum payments 6*£180 (Using GaryF figures).  Therefore, you would now only owe (assuming you borrowed £8,000) £6,920.

    The interest of £160 would be profit.
    What goes around - comes around
    give lots and you will always recieve lots
  • guiriman
    guiriman Posts: 525 Forumite
    First Post Name Dropper First Anniversary
    A couple of points to add in to the debate:

    If you have a credit card debt of £8000 and are paying off your minimum amount every month, in order to maximise your interest you should try to maintain the balance at £8000. So if your minimum payment is say, £200, then phone them up a day or two after they take it and transfer this onto your card from whichever card you use for your shopping and normal purchases (preferably a cashback card).

    One other thing, I noticed on the beeb's website that Halifax are launching a 6% savings account, but you have to pay in at least £25 a month and make no withdrawals for a year. Even with tax that's 4.8% for most of us, which is more than an ISA, so it may be worth sticking your credit card debt in there providing your confident of being able to roll it on. Martin, what do you reckon on this deal, is it worth going for Halifax or do you think someone else will react with a better deal?
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