Alliance & Leicester 0% BT on my existing card.

bimbam1982

Hi,

I currently have about £2,700 on an Alliance & Leicester credit card, which unfortunately I can only make the minimum payments on at the moment, due to recently buying a house.

The problem I've got, is that everything I am paying off at the moment is just interest charged from the previous month, so I have been trying to get a 0% card to transfer the balance to. I've been unable to get one, mainly I think due to the fact I have just bought a house and so aren't on the electoral roll yet.

Now, my Alliance & Leicester card has got a promotional rate of 0% at the moment for balance transfers - what I'm wondering is, is it possible to shift this debt to somewhere else, maybe a bank account or something, and then transfer it back into the Alliance card again to take advantage of the 0%?

Are you able to transfer a balance from a current account for example?

Thanks.

YorkshireBoy

I think you have your from's and to's mixed up.

You'll have to transfer the balance (ie debt) to another card. Transferring to a current account will mean you'll be sending money from the current account to the card to clear the debt.

I'm assuming you don't have funds available in your current account (otherwise you'd have already cleared the card with them)?

It looks like you have two options:

1. Transfer the balance to another card...either one of your own, or maybe a family member can help out?

2. Ask a family member to clear the card for you.

Once you have a zero balance (preferably statemented) you then ask MBNA (who run the A&L card) to balance transfer a (ficticious) overdraft from your current account to the A&L card. They will then send cash (at 0%, although a BT fee may apply, for x months) to your current account, from where you can repay your family member.

You then have £2,700 (plus the BT fee) at 0% for x months.

Sound workable?

One final thing. You card demands a minimum payment of interest + £5. That's a MINIMUM payment...you can, and should, pay more otherwise you'll be in exactly the same position as you are now in x months time.

Good luck.

bimbam1982

Thanks, that's great.

One thing I'm worried about though, wouldn't A&L remove the 0% BT offer available once my card balance is zero before I get chance to then transfer the balance back to the card? I presume card companies would of thought about this little work around and so protected against it?

bimbam1982

bimbam1982 wrote: »

Thanks, that's great.

One thing I'm worried about though, wouldn't A&L remove the 0% BT offer available once my card balance is zero before I get chance to then transfer the balance back to the card? I presume card companies would of thought about this little work around and so protected against it?

Does anyone know if my above question is correct? Would Alliance & Leicester, as soon as they see my card balance is down at 0, withdraw the 0% BT offer? I was talking to a lady at Virgin yesterday (who are obviously operated by the same company as A&L as they could see my A&L details as well) and she said that these promotional offers to existing customers update live and so can change at anytime.

Milarky

bimbam1982 wrote: »

Thanks, that's great.

One thing I'm worried about though, wouldn't A&L remove the 0% BT offer available once my card balance is zero before I get chance to then transfer the balance back to the card? I presume card companies would of thought about this little work around and so protected against it?

What are the terms of the 0% offer? This should inform you:

How long the rate lasts (often till a future month's statment)
Any fees (I'm assuming it's 3% standard fee)
How long you can make transfer at 0% for (often it runs the whole of 0% interest period itself)

In short, there sould be no difficulty with you rearranging your balances and then taking a 0% transfer.

bimbam1982

Milarky wrote: »

What are the terms of the 0% offer? This should inform you:

How long the rate lasts (often till a future month's statment)
Any fees (I'm assuming it's 3% standard fee)
How long you can make transfer at 0% for (often it runs the whole of 0% interest period itself)

In short, there sould be no difficulty with you rearranging your balances and then taking a 0% transfer.

Hi,

Just checked again and the details are:

0.0% until 13 April 2009 on all balance transfers completed before 11 September 2008

A transfer handling fee will apply of 3.0% of the transaction (minimum of £3.00)

I've just noticed the 11 September bit, does that mean that this offer will remain open to me no matter what until that date do you think, even if my balance suddenly drops from £2,700 to £0?

Milarky

bimbam1982 wrote: »

I've just noticed the 11 September bit, does that mean that this offer will remain open to me no matter what until that date do you think, even if my balance suddenly drops from £2,700 to £0?

Yes.......