0% introductory offer but want to balance transfer to free up more purchases

sundries

I have an m&s credit card in the 0% ten month period.

Its quite near its limit so i want to balance transfer so i can still use it for purchases.

(ive got enough money to pay the full thing off but i put that in savings account so i can get interest while borrowing for 0%)

would this affect the 0% introductory offer

nzseries1

I did exactly that. When my M&S card got near its limit, I BT'd that to a Barclaycard then continued to use my M&S card for purchases at 0%. A smart idea in my opinion.

socrates

What about the 3% or so charge at the other end?

You will need to factor that into the equation....

nzseries1

socrates wrote: »

What about the 3% or so charge at the other end?

You will need to factor that into the equation....

Good point, I had my savings in my A+L current account earning 8%, but that's not so easy to do these days.

td_007

With the low bank interest rates it is a fine line. If you BT say £2500 @ 3% fee you will pay £75. To get the same amount in interest from a bank you will need to keep £2500 @3% for a year while making other arrangements to pay off the min balance. Or £2000 @3.8% or £1000 @7.5%. Factor in tax and you are looking at much higher bank interest rates.

CannyJock

A&L Premier Direct is 6% on £ 2,500 for new customers. Abbey is 6% on £ 2,500 for new customers. You can have both. You can also pick up £ 50 cashback on A&L Premier Direct if you apply through Quidco. Range of regular savers also paying 5-6% if you want extra places to put your 0% credit card money.

td_007

CannyJock wrote: »

A&L Premier Direct is 6% on £ 2,500 for new customers. Abbey is 6% on £ 2,500 for new customers. You can have both. You can also pick up £ 50 cashback on A&L Premier Direct if you apply through Quidco. Range of regular savers also paying 5-6% if you want extra places to put your 0% credit card money.

A&L and Abbey are good options if you are willing to circulate £500 and £1000 every month - also you will be credit searched. Plus approach Abbey with caution

With regular savers timings become very important as you want them to mature just before you are due to payback your card in the event you are unable to find another card to BT.