Useful information about credit card cheques and pay yourself

bikerchris

Seeing that I looked here for an answer and didn't find one (don't worry, didn't ask and create another duplicate question!), I thought I'd write what I found.

The situation:

I wanted to get 0% money from a credit card and pay my current account with it, as a cunning way of avoiding debit interest.

Who I contacted:

I contacted Barclays at first (0800 731 0200) where I was put through to another country as usual. That's besides the point, what is interesting is that the representative assured me I could do the above, e.g. open an account, pay myself a cheque to my current account and only pay a 2.5% fee and no interest.

To double check this I used the barclaycard 'chat' feature on the website and spoke to an advisor who confirmed that was incorrect information.

The alternative:

So instead, I'm going to use my existing credit card and withdraw it as cash, then I'm going to balance transfer that amount to the 0% barclay card for 12 months. Although the total charges will be £88.59, that's not bad for having £1750 for 12 months (assuming I do the transfer straight away and don't incurr debit interest from the first card and that I pay it in full by the end of 12 months.). To confirm that's £43.75 to get cash from the credit card and then £44.85 as a balance transfer fee.

I hope that's useful for someone! Here's the transcriptions as proof if anyone doubts this information. If I'm wrong, by all means comment!

You are now connected with Sophie.

Sophie: Hi, you're chatting to Sophie. How may I help you today?

Chris: hi, i have a pre-application question about a credit card, can you help?

Sophie: Hi Chris

Sophie: We can't check pre -applications for you, but we have the option for you to do a pre-application check on the home page

Chris: It's not about any of my personal details, but conditions with the credit card that I am unable to find on the website. Is that something you can help with?

Sophie: Yes of course!

Chris: Great! It concerns the Barclaycard Platinum Credit Card. It says there is a 0% on balance transfers until Nov 2010. I'm going to fire a few questions or would you like them in one lump?

Sophie: No problem

Chris: Great - one at a time then.

Sophie: Go ahead Chris

Chris: 1. Does the account come with credit card cheques?

Sophie: Yes, we offer Cheques to pay off your account

Chris: Thank you.

Chris: 2. Can I use a credit card cheque to pay money into my current account, and will this transaction be eligible for the 0% offer for 12months and incurr a fee of 2.5%?

Sophie: Unfortunately not

Chris: Oh.

Sophie: The balance transfer would be on a balance you have on other credit or store cards

Chris: I do love conflicting information - I rang Barclays and they said yes. But thank you for confirming.

Chris: That's all then really. Thank you for your time.

Sophie: We aren't responsible for the information Barclays provides

Sophie: Sorry about this

Sophie: Your welcome Chris

Chris: Oh, so I rang barclays...and you're from barclays?

Chris: Err...

Sophie: I hope this has helped

Sophie: Sorry?

Sophie: No we are abrclaycard

Sophie: Barclaycard*

Chris: ah, barclaycard - I won't trust barclay in future!

Sophie: Barclays and Barclaycard are two separate divisions Chris

Moggles_2

Barclaycard issues credit card cheques periodically.

I don't know whether the bank's system is sufficiently intelligent to tell whose account a cheque has been paid into.

That said, adviser Sophie should have pointed out that cc cheques cannot be ordered and you never know when the next ones will turn up in the post.

Any

If you want to transfer money to your bank account what you need is for the card to give you MONEY TRANSFER option not balance transfer option. Between 'us' (on the forums) it's also called Super balance transfer.

Virgin (currently 0% on BT&money transfers for 16 mths) offers this option for a slightly increased fee of 4%.
Any other card from MBNA family also let's you do money transfer, but Virgin is the best deal at this very moment.

As Moggles pointed out - cheques are special offers for existing customers and you cannot order them. They either turned up or they don't.

MBNA family cards are well known by having loads of such cheque offers and that is one of the reason why we often keep MBNA cards even though they are paid off - just in case some good offer comes up. (And to be fair it very often does).

Hope this helps.

bikerchris

Hi Moggles, thanks for that information, good to know.

Hi Any,

Thank you for that information too.

I had to go with Barclaycard as the money was needed in a hurry (motorcycle racing fees for next year). In the end I did what I had suggested and I got two lots of charges on £1850, First Directs charge for transfering cash from a credit card to a current account was 2.99%. Barclaycards balance transfer fee for transfer money from the new card to my first direct credit card was 2.5%.

It's done now anyway, phew!

Dan:_4

Moggles wrote: »

Barclaycard issues credit card cheques periodically.

I don't know whether the bank's system is sufficiently intelligent to tell whose account a cheque has been paid into.

I phoned BC about this last month, they said I wasn't allowed to pay the money into my current account but were fine about me paying it into my girlfriend's account.