Tip - Use Barclaycard for back-door Super Balance Transfer !

bargain_slag · 17 February 2015 at 3:12PM

Hi all,

Last month I got the Santander 123 Credit Card no-fee Balance Transfer for 23 months.

I then messaged Barclaycard via t'internet banking site and asked them to confirm in writing that if my Barclaycard Credit Card Account (currently with zero balance) goes into positive balance as a result of a balance transfer from another provider, then they would refund the money into my bank account. To my surprise, they confirmed exactly that.

So, back to Santander. I transferred the max that I could, £5.5k, to my Barclaycard, putting it into positive balance by £5.5k

Once it was safely in my Barclaycard Credit Card Account, I messaged Barclaycard again (continuing same secure message thread) confirming my Bank Account details and requesting payment. They sent it overnight that day, then I split it between two 5% current accounts.

So that's £5.5k now earning interest for free. Even with the second year's £20 Santander CC card fee, 20% tax on interest and the 1% monthly repayment nibbling away, it will still net about £375 over the 23 months.

Hope this is of help...

Happy Stoozing - but please remember :money:MSE's guidance & warning, i.e. that Stoozing is ONLY for those who are debt-free & financially savvy. It requires discipline, and is absolutely NOT a way to spend more than you would have – it's a money-making recipe. So don't overspend and never breach the card's credit limit. etc etc.

plunt · 17 February 2015 at 6:34PM

reckon they will catch on if you do it multiple times.. on a side note, if you are happy to do that then why stop there, why not open a 0% cardwith Halifax and or tesco, shorter period but still may be worth it. also when the 1% and nibbled away you could potentially just do another balance transfer to top it up... (not sure on the santander t&c's)

Candyapple · 18 February 2015 at 1:06PM

Was the bank account you requested the funds to be transferred to a Barclays one?

mozzy10 · 5 March 2015 at 7:40PM

Do they charge any kind of fee for this transfer?

bargain_slag · 22 April 2015 at 3:44PM

Hi. Sorry for late reply. Barclaycard transferred it into my First Direct Account....no fee at all.

mp3duck · 22 April 2015 at 11:09PM

this does seem like a neat trick, but I have a horrible feeling that it'll be breaking a Barclaycard T&C somewhere... I guess not doing it again (i.e. only once) and you'd get away with it..

I am tempted to do it myself, as I also have a newly opened 123 credit card, and a Barclay card sitting with a £0 (actually £4 credit) balance

sinizterguy · 22 April 2015 at 11:32PM

Barclays do not take kindly to anyone repeatedly maintaining a positive balance.

While a few people might get way with it once or may be even twice, they will begin rejecting such balance transfers .... Leaving you to deal with the fallout.

JimmyTheWig · 23 April 2015 at 9:18AM

People have been stung by this in the past.
E.g. the receiving card provider has returned the money to the 0% card provider. The problem there being that you still end up paying the BT fee to the 0% card provider and you don't get any interest to offset it.

With a fee-free transfer there is less risk.
An experienced stoozer on this board has done it with the Santander 123 fee-free 0% (puting an MBNA card into positive balance, I believe) with no problems, so the OP's experience isn't just a one off.

Getting agreement in advance also helps, though I wonder to what extent. They may agree that a positive balance will get transfered to your current account, but if they don't accept the transfer in the first place then your account will never have a positive balance and they haven't broken their word.

mp3duck · 23 April 2015 at 9:23AM

I am also doing this with the 123 fee-free 0%, so even if the transfer was returned, I should be where I started.. Could always just say you got the cards mixed up..

Danny

ShawUK · 26 April 2015 at 11:28PM

Not quite following this, I'm new to stoozing, currently filling up a 0% with halifax with general day-to-day spending.

You did a fee-free balance transfer at the end of a 0% cc deal from another card to santander? Then did another balance transfer to a barclays credit card which you wasnt using then got barclays to transfer the funds to your interest paying current account?

mp3duck · 27 April 2015 at 9:07AM

ShawUK wrote: »

Not quite following this, I'm new to stoozing, currently filling up a 0% with halifax with general day-to-day spending.

You did a fee-free balance transfer at the end of a 0% cc deal from another card to santander? Then did another balance transfer to a barclays credit card which you wasnt using then got barclays to transfer the funds to your interest paying current account?

I've successfully completed this "trick" this morning.
This is what we did ShawUK.

1. Have a Barclaycard with little, or no current balance.
2. Have another credit card which offers 0% balance transfers without a fee (in our case, the Santander 123 Credit card, 0% for 23 months).
3. Do a balance transfer from the Barclaycard, onto the 123 card.
At this point, taking an example transfer of £5,000, the 123 card will have a balance of £5000, and the Barclaycard would be -£5000
4. Secure message/phone Barclaycard, asking them to transfer your credit balance to your current account.
5. Wait 1-2 days working days (I did mine request on Friday, and received funds this morning).
6. You now have £5000 in your current account to do with what you wish, Stoozing at 0% for 23 months, having paid no fees..

I must point out that when I phoned Barclaycard, I was put though to their fraud department, although this wasn't a problem, just said I did a balance transfer to wrong card.. Might be best to not phone, and conduct all communications via secure messaging.

Tip - Use Barclaycard for back-door Super Balance Transfer !

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