Existing Credit Card User Deals?

Angel2010

Is it possible to benefit from the current credit card deals if you are already an existing customer with the card in question? For example, if the card is offering 0% on shopping for 6 months but you have already had the introductory interest free period?

david39

Sometimes.

The best answer is to ring up and ask.

MBNA seem to offer this as a permanent promotion to existing customers with plenty of spare credit on their cards, especially those who regularly do balance transfers to and from other cards.

jamesd

Yes, it's sometimes possible. MBNA are less willing to do this than they used to be.

TGray

This seemed like an appropriate topic to post this question in.

Just had a letter from my existing CC company suggesting I balance transfer from another card, or pay off something else by transferring an amount of money to my UK current account. They say this transfer of cash would be at 0% till Dec 2011.

They pitch it as paying someone like a tradesman who cannot accept credit cards and I would not have to pay interest (though a 2.5% handling fee applies) until the free period is up (then it changes to 19.9%).

Am I just being suspicious or could this be used to my advantage somehow?

Any thoughts welcome.

T.

jamesd

See the Stoozing article. Some people will use methods that aren't risk-free. You're paying a little over 2% APR for the money and will be able to make a small profit from anything that pays you or saves you 2.4% or so after tax.

david39

To TGray:

This is quite common - called a super balance transfer. A balance transfer just gets paid to another card or loan provider - a super bt puts cash into your bank account.

MBNA seem to offer me this at regular intervals as long as I have a low balance with them, but their transfer fee is 4% (3% for normal bts). I've never taken it up so I don't know if they are negotiable on the fee but your offer at 2.5% is a good one.

There is no catch in it provided you do not default (even by a day) on the monthly payment dates - you'll lose the 0% if you do.

Also, read the small print about exactly when the 0% rate finishes - it is usually not the date (in your case) of the Dec 2011 statement. It is more likely to be due in December on the day before the day of the month that the money got charged to your cc account.

Many people miss this last point and get charged the full interest rate on the period that they have overshot that date and then wonder why.

MWH1

Has anyone had a discussion with Barclaycard customer retentions recently? Just paid off my balance as the last offer I had ended. Yesterday they offered me an interest free period until Dec 2011 at the slightly reduced rate of 2.5%. Historically, they have given me a balance transfer fee of 1.25% (with 12 months interest free).

They were citing the current economic climate and said they couldn't honour the old rate I had enjoyed. Any thoughts?? :money: