Pay off balance and/or stooze

nicky2_2

Having just secured a 9 month 0% cc min payment £5 a month I have balanced transferred £3.5k of debt over. My question is that they have given me a credit limit of £15k - is it worthwhile doing a super balance transfer for remaining £11.5k into a savings account for the nine months ? It seems a shame to have it available but not use to earn some interest?

Cheers

JollyNolly

Which card is it?

YorkshireBoy

Whichever card it is, it sounds like it's run my MBNA.

You won't be able to get at the full £11.5K due to their 95% rule. So, yes, it's possible that you could SBT £10,925 (for a £50 BT fee) and make some interest on it - around £364 gross over 8 months (less your £50 BT fee of course).

However, 2 points to bear in mind...

1. If you'd had this idea earlier, you could have saved yourself £50 (due to the BT fee cap) by BT'ing the full (95%) credit limit to your current account and then settling your other card from there.

2. And this is the important one...Many of the MBNA run cards now have a 'money transfer' definition in their T&C's, meaning you may have to use a credit card cheque to get the cash off your card. Read your T&C's very carefully before proceeding.