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Natwest Credit Card Trick

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NOTE:
I HAVE BEEN TOLD THIS WORKS BY A FRIEND AND HAVING LOOKED AT SEVERAL NATWEST STATEMENTS IT LOOKS AS THOUGH IT SHOULD BUT I CANNOT GUARANTEE IT WILL WORK, I STRONGLY ADVISE YOU TO RING CARD SERVICES RATHER THAN FILL IN A FORM AND POST IT AND RISK IT NOT WORKING (UNLESS YOU ARE PREPARED FOR IT NOT TO WORK)


Natwest have been sending out an offer to credit card customers of 0% for 6 months on transfers with a 3% fee, not an amazing offer (not worth stoozing with) but if you have more expensive debts it is worth doing.

Like all credit cards (as far as I know) except Nationwide it clears balances with the lowest interest rate first so if you have a negative balance before you start don't even think about it (if you have a large negative balance though look for a card with no transfer fee, transfer the balance to it, the interest rate doesn't matter, then transfer it back to get 0%)

Like the Egg card Natwest charges interest on the transfer fee immediately, this makes you think that when you do the transfer the fee is locked in accruing interest until the whole balance is cleared. This is not the case, if you start with a balance of £0 that is exactly what will happen.

The way to work around it is fairly simple though, when you do the transfer for some bizarre reason the fee is charged first, then the balance transfer is done later (the some day but still afterwards)

If you can see where this is going now well done. To avoid the fee all you need to do is calculate what the transfer fee is and start with a positive balance of that amount. Here is an example:

Mr Mark Steven Edward Martin decides he wants to transfer £1000 to his Natwest card at 0%, the balance transfer fee at 3% will be £30, instead of starting with a balance of £0 make a payment of £30 to the card first then do the transfer. The transfer fee is taken first so this takes your balance to £0 then the transfer of £1000 takes place, hey presto you have a balance of -£1000 at truly 0%.

Two people have told me they have tried this and it works, I have looked at several card statements where a transfer has been done and on the list of transactions the fee always came first (albeit on the same day the fee still came first) if anyone tries this and it doesn't let us know.

NOTE (AGAIN FOR ANYONE WHO DIDN'T READ IT THE FIRST TIME):
I HAVE BEEN TOLD THIS WORKS BY A FRIEND AND HAVING LOOKED AT SEVERAL NATWEST STATEMENTS IT LOOKS AS THOUGH IT SHOULD BUT I CANNOT GUARANTEE IT WILL WORK, I STRONGLY ADVISE YOU TO RING CARD SERVICES RATHER THAN FILL IN A FORM AND POST IT AND RISK IT NOT WORKING (UNLESS YOU ARE PREPARED FOR IT NOT TO WORK)
If you don't like what I say slap me around with a large trout and PM me to tell me why.

If you do like it please hit the thanks button.

Comments

  • Milarky
    Milarky Posts: 6,356 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    So this works because the fee is applied to the account before the transfer which takes it into a 'debit' position?

    [I've sometimes wondered about this question of fees in general - why can't you always have the option to pay the fee separately from the transaction to which it relates? In law 'fee' must mean sometime quite specific but is that separable from the question of how 'in law' any fee may be settled - eg before or after the service?]
    .....under construction.... COVID is a [discontinued] scam
  • The_Boss
    The_Boss Posts: 5,856 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Sounds interesting - and I'm guessing this can be done on other credit cards with the same 0% deals.
  • The fee is applied before the balance transfer so if you leave it in credit by just the amount of the fee then when the fee is taken the balance is £0 then the transfer happens and the fee isn't owing.

    It may or may not work with other cards, to me it is a back-to-front way of doing it, wouldn't providing the service (the transfer) then charging the fee be the right way round?

    I don't know which way round other providers do it. Don't assume it will work.

    Da Moron
    If you don't like what I say slap me around with a large trout and PM me to tell me why.

    If you do like it please hit the thanks button.
  • The_Boss
    The_Boss Posts: 5,856 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I'm £350 in credit on my MBNA card - I might have to try this and see. I'll report back my findings.
  • Waste of transfer fees just ring up and ask

    Da Moron
    If you don't like what I say slap me around with a large trout and PM me to tell me why.

    If you do like it please hit the thanks button.
  • The_Boss
    The_Boss Posts: 5,856 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Well I am going to ask for a balance transfer offer anyway so will do this and report back my findings
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The_Boss wrote:
    Well I am going to ask for a balance transfer offer anyway so will do this and report back my findings
    Virgin (also run by MBNA) debit the BT fee 24-48 hours after they debit the BT itself. They do, however, then backdate the BT fee to the date of the BT but they list it after the BT in my experience.

    However, the above is irrelevant in this scenario, because MBNA collect the BT fee with the first post-BT payment (£5 + interest + fees) - meaning the BT fee doesn't sit around long enough to incur interest. ;)
  • Anyone tried it?

    Da Moron
    If you don't like what I say slap me around with a large trout and PM me to tell me why.

    If you do like it please hit the thanks button.
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