Halifax Just sent 2 credit card cheques...

bigstevex

I've just been sent 2 credit card cheques, they are both to be used with 2 balance transfer offers they sent, 1 was 3.94% for the life of the balance and the other was 9 months 0%.

It says i can use them to pay off what ever i like, but does this include paying them into a curent account? The small print says I can't pay off other halifax debts including cards/overdrafts and loans. Basically just has a 3% fee and I can do what I like with them, does this sound right? I always thought it was only MBNA that did this?

Robert_Sterling_3

I sometimes get credit card cheques.
I tear them up.
However they can be used for most purposes.
I think they then count as a cash withdrawal so there is a day one charge ( e.g. 3% 0 and interest is charged on the cash withdrawal at a high rate from day one. etc etc.
Thus it suits some people.

If you use it to pay off another credit card you immediately create an equal amount of debt on this credit card.
Avoid using it if you can.

thriftymomma

Yes they can be paid into bank accounts.

frenchconnection200

I think this is a good offer and I've taken advantage of it. Yes they can be paid into a bank account as I checked although I actually did a BT over the phone. I was told it was an offer for really good customers which is strange as I haven't used this card for about 2 years and had forgotten about it but I'm not complaining.

JupObs

Robert_Sterling wrote: »

I sometimes get credit card cheques.
I tear them up.

These are not cash rate cheques, they are balance transfer cheques, hence a very good thing.

Regards

naijapower

It is a good offer in my opinion if you need some credit. for example you can pay 1000 pound chq into you account. This can serve as a 9 month loan at 0% interest. even if you add the 3% fee, you still have a good deal.
So long as you discipline and repay back in 9 months, then you have saved money as no where esle would get a loan/cash advance for such a cheap rate

Moggles_2

I've just been sent 2 credit card cheques. They are both to be used with 2 balance transfer offers they sent, 1 was 3.94% for the life of the balance and the other was 9 months 0%.

I wouldn't use both cheques, if I were you. Unless stated otherwise, you can bet that payments will be allocated to your outstanding balance in a way that benefits Halifax.

If you take up both offers, there's every prospect that your 0% BT will remain trapped on the card once that promotion ends. In 9 months time remember, the interest rate on this transaction leaps to your standard rate, which is variable.

The same logic would apply to virtually all credit cards. As always, check the small print carefully .

JupObs

Moggles wrote: »

I wouldn't use both cheques, if I were you. Unless stated otherwise, you can bet that payments will be allocated to your outstanding balance in a way that benefits Halifax.

If you take up both offers, there's every prospect that your 0% BT will remain trapped on the card once that promotion ends. In 9 months time remember, the interest rate on this transaction leaps to your standard rate, which is variable.
.

I've got both of these cheques too and intend to use both (you don't actually have to use the chqs, you can call them or transfer online).

The plan for using both BT types is that Halifax state that they will pay off the lowest interest items first. So I will be putting about 90% through at 3.94% promo and the rest at 0% for 9 months. The logic behind this is that the minimum payments for the 1st 9 months will completely pay off the 0% amount.

The figures might need a bit of tweaking but hopefully you can see the logic behind the idea.

Regards

Moggles_2

The figures might need a bit of tweaking, but hopefully you can see the logic behind the idea.

Absolutely, but I doubt the accompanying literature points this out and the OP certainly hasn't mentioned it.

IMO, this is exactly the poo-trap Halifax calculates some customers will fall into and it's one of the main ways the bank stands to make money out of the deal.

anotherpaul_2

I've just had four (two of each) but they say I can do the transfers over the phone, so I can transfer as many different balances as I like to the same card. (I've torn up the cheques but kept the letter - I intend to use the 0% offer.)

bigstevex wrote: »

It says i can use them to pay off what ever i like, but does this include paying them into a curent account? The small print says I can't pay off other halifax debts including cards/overdrafts and loans. Basically just has a 3% fee and I can do what I like with them, does this sound right?

My letter has "Important Information" on the back. No 4. says:
"... and you cannot make balance transfers for loan companies or bank accounts."
To me, that's pretty clear cut. I would certainly ask them before paying it into your current account, in case you get a nasty shock!

anotherpaul_2

Moggles wrote: »

Absolutely, but I doubt the accompanying literature points this out and the OP certainly hasn't mentioned it.

The letter I got with mine says exactly this in well laid out table on the back.