2 active credit cards - both offering 0% on balance transfers

shelsbells1974

Not sure what to do, or if possible!

I have TWO active credit cards which I have had for years - MBNA (balance approx £1000) and Santander (balance approx £650) .... been used in the past and accordingly paid off but these amounts are what is owed now.

Now both these companies are offering me 0% on balance transfers with the promotional gumph that comes through (presumably it will be for the standard 6 months) BUT! would it be possible to transfer say the Santanders £650 to MBNA for 0% and then ultimately transfer the then MBNA balance of £1650 back to Santander for 0%????

I usually go with the flow and pay what is stated but thanks to Martin I think its time we start saving money as and when we can! After watching him on a programme I told my friend about this PPI - she has now duly received £1500 from her bank! so its definately worth trying.

Thanks for your help in advance

Tixy

Hi
It is possible to do.
Things to watch out for
- once you have done the first transfer the then empty card provider could decide to reduce your credit limit down (possibly to lower than the amount you planned to BT back).
- what will the BT fees work out at?, bearing in mind there will be double fees on some of it. how does that compare to the standard APR you are currently paying? to work the comparative costs out you'll also need to work out how long it will take you to pay off the debt overall. Will it all be clear within the 0% period being offered?

thenudeone

There is no reason why not
1) once the BT offer ends the interest rate which you end up paying on the each card will be the rate for balance transfers which may be more than for purchases
2) once you pay off a card they may decide to close it, before you initiate the transfer back (you'll still be better off because at least SOME of your balance will be interest free)
3) there is usually a 3-4% fee
4) make sure you don't take either account into credit due to differences in timing; this is a breach of the Ts and Cs and they may reject the payment and close the account (although unlikely), leaving you worse off (because you will have paid the BT fee but have no BT to show for it!)

shelsbells1974

Hi guys thanks for the quick replys .....

Just to answer a couple of your questions (and for some further advise) .... these cards were both previosuly paid off several months ago(£0 balance) but was advised to keep open by the relevant companies "just in case" - thank god they did - came in handy when the oven blew up and the washing machine died etc etc a couple of months ago - still kept the DD open to each too!

The credit limit for MBNA is £13,300 and for Santander is £11,400 so cant see them reducing it by much (and they never did when it was paid off before) but like you say "will I pay off the final amount of say £1700 in the six months - I cant be sure! and it doesnt obviously state the APR on either statement! which I find odd .... but perhaps I cant see the wood for the trees! lol

.....SO! should I phone both with a general enquiry asking:-

Current average APR?
Balance Transfer Period?
When does offer end?

Any other questions are there that one would suggest that need to be answered?

Thanks again

thenudeone

They won't give an average APR; they will tell you the APR on each type of transaction (which is what you need to know anyway) but otherwise that's the information you need.

shelsbells1974

Thanks thenudeone (love the name! ha)

Ill ask for the % on the following then: -

Card Purchases
Cheques (which I would never do)
Cash Withdrawals (again, would avoid)
Balance Transfers

That should be about that then I hope including the 0% time period! Damn! I wish I won the lottery at weekend then I could just pay everything off and be done with it! lol! But, suppose we need to do all this to get anywhere without burying our heads in the sand hey.