Should I make something out of this?

consumers_revenge

Hi,

Bit of a newb in this area....but think I can make ssome money here?

I have just had a halifax clarity credit card ( think you still get a fiver back a month if you spend £300 in the previous month? )

Now I noticed that you could transfer a balance over ( I have about £700 debts on other cards which I will pay off at the end of the month ) Now looking at the underneath Im thinking I could tranfer teh balance over and claim the 2% cash back? As I was going to pay it all of anyway...


No fee to transfer a balance

Get 2% cashback (up to £60) on balances transferred now.
With the Clarity credit card we are offering a bonus cashback reward on any balances you want to transfer in the first 90 days which is tax free. So if you have any balances on a card with a higher rate you can make a double saving. Firstly, benefit from having lower interest payments and secondly, for every balance that you transfer when you first open your account you will get a 2% cashback reward (up to a maximum of £60).
To benefit from the 2% cashback on balance transfers offer:

• Transfer a balance to your Clarity credit card and you will get 2% cashback credited to your account. This offer applies to balances transferred in the first 90 days and is available to new customers only.
• The maximum cashback value is £60, so if you transfer a balance of more than £3,000 your cashback will be capped at £60.
• The cashback amount will be applied within 30 days of the balance transfer being added to your account.

That’s it, it really is that simple!

But this is in their FAQ's

Can I transfer a balance?
You can transfer a balance from most other credit or store cards, and we won't charge you a fee for doing so. This means that you can take advantage on the competitive rate on your Halifax Clarity Card or Halifax Rewards Clarity Card without any additional charges.

What does 'BT fee' mean?
BT is an abbreviation for Balance Transfer. A Balance Transfer transaction is the movement of a balance from one credit or store card account to another, typically to take advantage of a better interest rate. Many other credit cards will charge a fee for this service (typically 3%), but with the Clarity Credit Card, this service is fee-free, so you can take advantage of the competitive rate on your Halifax Clarity Credit Card or Halifax Rewards Clarity Credit Card without any additional charges.

Any thoughts please?

HappyMJ

Possible but I think the only way to really make money on this is to transfer the balance then pay it off in full as soon as possible thereby reducing the interest payable. Actually to really make a lot more I'd transfer as much as possible up to the credit limit. More than the balance that is outstanding on the other card. Spend using the other card (to use up all of the excess cash) and use your salary at the end of the month to pay the Clarity card off in full. 2 weeks of interest won't be much.

YorkshireBoy

consumers_revenge wrote: »

( think you still get a fiver back a month if you spend £300 in the previous month? )

Only if it's the 'Reward' version, ie you have a qualifying current account.

Any thoughts please?

The longer you delay clearing the other balance the more interest you will pay there (assuming it's not currently 0%?). If it's interest bearing then you'll also have some residual interest the following month.

The moment the BT hits your Halifax account you'll start incurring interest on the debt. Plus you'll have some residual interest the following month...even if you pay it off immediately.

So when you've factored these costs in, and subtracted them from the £14 cashback you'll make, how much money will you actually make after all the hassle?