Balance Transfers - Possible to transfer more than balance?

sfax

Hi, I'm new to the forums and I have been searching without success on some information on transferring more than an outstanding balance using a balance transfer.

I have a Barclaycard with a zero balance and I have been offered a 1.5% handling fee interest free balance transfer on up to £5000 until February 2010.

I have a balance of about £3000 on a Virgin credit card and I want to transfer more than £3000, for example £5000, leaving the Virgin credit card £2000 in credit. I would then close the Virgin Credit card and get a cheque for the £2000 credit.

Is there anything to stop me doing this? I have transferred about £200 more by mistake once before and the card was left with a £200 credit so I'm hoping I can do the same but for £2000.

I can't find anything in the Ts and Cs that says anything about transferring more than the outstanding balance.

Thanks in advance for any help.

Robert_Sterling_3

A good question to which I do not know the answer for sure but I would guess it was not on.

aj2703

I think that may flag up on their system as a possibile money laundering transaction. I wouldn't be suprised that if you did that you'd cause yourself no end of problems.

sfax

aj2703 wrote: »

I think that may flag up on their system as a possibile money laundering transaction. I wouldn't be suprised that if you did that you'd cause yourself no end of problems.

Perhaps, but isn't this analogous to just taking a new loan for £2000? There's no cash involved. I'm more interested in whether it's possible under the rules of a balance transfer.

aj2703

I have to be honest and say i don't know the answer i can only guess. I don't think it would work though as i am sure they would have a system inplace to insure it dosen't. If it did go through, you may also get stung for cash fees on your card. As you say it's tantamount to a loan therefore it would be the same as a cash advance which could incur serious charges.

sfax

OK, thanks. I'm going to contact Virgin and ask what happens if they get a request for a balance transfer that exceeds the balance. Will post the response.

Robert_Sterling_3

A good idea. Please do.

sfax

Update on this one. I have now spoken with barclaycard and with virgin and asked the same question "what happens if I transfer a balance that is greater than the outstanding balance?". They both answered that the account will be left in credit. I checked if "it was OK to do this" and they both said yes.

Certainly not conclusive and the proof is in the pudding but the way I see it this is OK based on the advice given by the companies.

This in theory means that you could have a balance of £1 on one credit card and transfer any amount to another card up to your credit limit / the limit on balance transfers. You can then request a cheque for the credit amount.

I'm about to do this to the tune of about £2000 so I'll post the results either way.

williham

If you've got enough credit limit you could ask for a transfer to your bank account from virgin but I suppose you would have to pay 3%..

sfax

Yes, I'm aware that's an option with some credit cards but not with barclaycard which is the one that I have the promo rate on. This appears to be a useful alternative for when a direct balance transfer to a bank account is not possible.

Moggles_2

This in theory means that you could have a balance of £1 on one credit card and transfer any amount to another card up to your limit on balance transfers. You can then request a cheque for the credit amount.

Caution: lenders vary in this respect, as with everything else. Your enquiry suggests this may be possible using your Virgin card. You certainly cannot do it with any credit card, as many forum users have found out the hard way.

Some (eg. HBOS, HSBC) insist on returning the surplus funds to the account from which the money was sent (due anti-money laundering regulations). If this account happens to be another credit card, you could incur two balance transfer fees and be back to square one.

Personally, I wouldn't risk putting a credit card in credit. Credit cards - other than Egg Money - are not designed to carry a positive balance. Small amounts that arise temporarily (due to a refund, for instance) are okay, but the Ts & Cs usually prohibit payments that deliberately place the account in credit.

Also, in closing your Virgin card, you've lost one of the few which allows you to route money through your bank account at balance transfer rates. This, plus it's market-leading follow-on offers, makes the card worth keeping in your deck, IMO