Balance transfers and borrowing on card

morlandbanks

I want to borrow a large amount on my Tesco credit card - about £2500. Then I want to transfer the balance onto another card, therefore benefitting from Tesco clubcard vouchers as well as a 0% interest rate on getting a new card. I'm planning to pay off the balance at £100 a month.

Is this a stupid way to borrow the money, and what am I missing? Can I really just transfer the balance to another card? How easy is this to arrange? Will I be chanrged any fees?

Any advice very welcome!!

I'm OK at managing a budget and although I've had the same card for years, I get great deals with the clubcard and always pay it in full so I've never paid a penny interest. But I can't pay this amount back right away.

I know the old fashioned money savers will say 'if you can't afford it, don't buy it', but let's face it...That's not modern life is it?!! And if I can actually borrow this money the way I've described above, it won't actually cost me to do so.

Hayley

Milarky

I want to borrow a large amount on my Tesco credit card - about £2500.  Then I want to transfer the balance onto another card, therefore benefitting from Tesco clubcard vouchers as well as a 0% interest rate on getting a new card.  I'm planning to pay off the balance at £100 a month.

AFAIK balance transfers on a new Tesco credit card may be interest free for 6 or 8 months but you don't get any clubcard benefits unless the TC is also interest free on purchases for the same period and you intend just to run up this amount in spending first and later balance transfer to another 0% card [in which case it will work]

But I'm a bit confused ??? Can you flesh this scenario out a bit?

Thanks

funkymonkey

If you are using the card to buy the product - then transfering the balance to a 0% card you can get the points!

You will need a new credit card with a 0% deal - Egg and MBNA are good for giving large credit limits. Mbna were the best for me. they gave me a credit limit of 2500 on an income of 17000

buy the product you want on your tesco card. if the balance is at 0 you will have approx 50 days interest free till you have to pay it off. open new account the same day or a couple of days before - put the balance transfer on the application form therefore saving you any 2% fee.

when the card comes through i would just ring up to check they are processing the balance transfer.

so within around 20 days your balance on tesco card will be 0

your balance on mbna ( for example ) will be 2500 at 0% for 6 months!

simple as that and you will walk away with the clubcard points!

after 6 months has passed either pay it off or get a new card and shuffle!

Unbelievable_2

It seems that for this scheme to work you're going to need 0% for just over 2 years or to increase your monthly payment over time. Just make sure you've got a back up plan if, for any reason, you can't get 0% somewhere down the line! :-/

Otherwise I think it's a great idea

morlandbanks

Thanks for your replies. Your advice is gratefully accepted. Thank you all so much for taking the time.

I will go ahead with my purchase, happy in the knowledge that I've gotten something for nothing out of Tesco again!!! (paid in full for our Christmas break with clubcard voucher deals!).

Isn't this a brilliant site?! I wouldn't dream of spending without checking here first to see how much I can save!

Hayley

Martinslovechild

If you are using the card to buy the product - then transfering the balance to a 0% card you can get the points!

your balance on mbna ( for example ) will be 2500 at 0% for 6 months!

If you apply for the Virgin card (also run by MBNA), then you'll get 9 months at 0% and a free MP3 player if you apply here by Friday