Credit Card Cheques.

brindles01

Can I please ask for some advice - I have tried to search for a relevant post but have not had any joy. I have received off my bank, LTSB, 4 credit card cheques to 'use'. I have a LTSB Plat Card with 9k credit, and no balance. Can I use these cheques to put a +ve balance on the card with 6 months interest free credit. If so what is the correct proceedure to use? Any advice gratefully received, good or bad!

YorkshireBoy

brindles01 wrote:

Can I please ask for some advice - I have tried to search for a relevant post but have not had any joy. I have received off my bank, LTSB, 4 credit card cheques to 'use'. I have a LTSB Plat Card with 9k credit, and no balance. Can I use these cheques to put a +ve balance on the card with 6 months interest free credit. If so what is the correct proceedure to use? Any advice gratefully received, good or bad!

What are the T&C's for the cheques? For example, are they at 0% for 6 months with a fee? Is the fee capped or just a simple percentage?

Generally, people 'stooz' the cheques by paying them into a savings account (possibly via your current account). It is posible to make some money with a £9K limit and a 2% (max £50) fee - however, you must be very careful to read and understand the accompanying T&C's.

Milarky

brindles01 wrote:

I have a LTSB Plat Card with 9k credit, and no balance. Can I use these cheques to put a +ve balance on the card with 6 months interest free credit. If so what is the correct proceedure to use? Any advice gratefully received, good or bad!

You've got that the wrong way about. You would put the Lloyds TSB card into a positive balance if you balance transfer 'to' another card to take advantage of their 6 months interest free. You then write a cheque to yourself (against this positive balance). Potential pitfall of this are:

1) LTSB may return the positve balance - something you should ask them or find out whether this applies. Some card issuers say they 'may' (or will) do this in their own terms and conditions but many don't. Putting a credit card into a positive balance is generally not approved of with the exception of Egg.

2) The other card issuer may have something to say about that too. They may not always agree to transfer a 'non-existent' balance to themsleves even though this should make no difference to them - they are still lending you the money. Again, this would be generally disapproved of but is not strictly 'policed' AFAIAA (I've inadvertantly doubled a balance transfer by doing it twice, myself. Nothing bad came of it, and it does happen in practice where people apply for two cards and ask for a balance transfer to the same card on the assumption that only one application will be accepted).

3) LSTB may charge you a fee for writing a cheque. Sometimes they won't. It always depends on what the accompanying letter says. Only write such a cheque where to understand and/or accept any such fee may apply. Having a 'positive' balance on the LTSB card makes no difference whether a fee will be applied. It only means you won't have to pay any subsequent interest to LTSB as the balance will not be drawn below zero.

You can avoid some of the pitfalls by writing the cheque and paying it in a before starting the balance transfer to the other card. In theory you could ask for a BT immediately after banking your cheque since you then carry a geniune debt to LTSB - albeit only momentarily.

EDIT: Sorry if I've confused the situation - I've assumed there is no special low interest rate (like 0%) on these cheques. If that's not so then YB is on the right lines and it all depends on whether it is profitable for you rather than 'can it be done?'