Balance Transfers to Bank Account

ffc

Hi was wondering if somebody could help me.

I am looking to use the 0% balance transfers on certain credit cards to move the money into my savings account to earn the interest then pay the money back at the end of the 0% offer.

Is there a problem with moving money into my account for certain cards?

I have successfully done this with Egg but when you go through the online application on certain cards they only seem to move money to another credit/store card with an outstanding balance.

Is there a way round this or only certain cards that this can be done on.

Thanks.

grumbler

ffc wrote:

...Is there a way round this or only certain cards that this can be done on...

Yes, only certain cards and yes, there is a way round. Start with reading Martins articles. See Super BTs and Stoozing links in the blue box above.
See also:
http://www.stoozing.com/full.htm

Don't hesitate to ask further questions ...

ffc

Thanks for that seems to answer most questions.

One other quick question am I right in thinking there is not a limit on how many times you can make a balance obviously you just pay the fee (if there is one) each time?

Thanks again.

grumbler

Usually there are time limits on BTs, and there are no limits on number of BTs. However, if a BT fee is applied, it is often capped. In this case it is better to transfer one large balance than several small ones.

ffc

That's what I thought thanks.

Am I also right in thinking that if I have an egg money account I can apply for any card with a 0% balance transfer and effetely move the money into here giving me a positive account with egg money.
I can then either leave the money here or move this out (free of charge) to another savings account?

grumbler

Yes, although by doing this you can breach some providers T&C if they specify that you must have a debt to transfer. Many people disregard this with no problems. However, you can create a negative (debit) balance on the Egg Money card first to be on the safe side.

ffc

Right im with you.

What would be the best way to create a negative balance on the card without actually spending any money.

Could I say transfer £5000 out to another account then simply do a balance transfer of £5000 from my new credit card?

Is there anyway they can tell if where you are moving the money to has a negative balance, have many people been found out on this that you know of??

Thanks again!!!

YorkshireBoy

ffc wrote:

What would be the best way to create a negative balance on the card without actually spending any money.

Could I say transfer £5000 out to another account then simply do a balance transfer of £5000 from my new credit card?

Yes, you'd transfer cash from Egg Money to your current account via a BACS transfer (and the debt will cost you around 40p/day/£1,000 of balance at 15.9% APR). So, you'd apply for your new card and then just before you ask them to BT from Egg Money you'd create the debt. Technically, at least, you wouldn't be commtting fraud (but see below).

Is there anyway they can tell if where you are moving the money to has a negative balance

Yes, but only by searching your credit file or asking for a statement to prove you have the debt.

They're unlikely to search your file again (in my experience), although if they did they would see last months balance because the providers only update once per month. However, if you ask for a large BT or credit limit they sometimes ask to see details of your existing borrowings via your statements.

have many people been found out on this that you know of??

Yes, it's been reported on here recently, but the poster was able to explain away the positive balance to the new 0% BT provider and the transfer went ahead.