Balance transfer - to another card only or to bank account?

[Deleted User]

Got an offer for sainsburys 2.9% apr for 2 years.

It says balance transfer but I was hoping to use it as a loan. What would be the best way to do this? Assuming they wont transfer to bank account...

For instance, could I transfer to another credit card which would put that in credit by say, £3000. Then I use this card for spending every month (£1000) so in three months wouldnt have to pay a CC bill.

Admitedly, problem with this approach is Im paying interest straight away.

[Deleted User]

Or could I say transfer £3000 to a card with zero balance (thus putting it £3000 in credit) then phone them up and say, I'm in credit, please can I have my £3000 back? Or is this dodgy?

Alternatively, I could withdraw cash of £3000 using said credit card, then do balance transfer. Trouble is then I'd get charged cash advance fee of whatever (1.5%?) plus a few days interest until the transfer competed.

[Deleted User]

Option 1 - this is against the t&cs (to put the card into credit) and a large sum like that would probably be returned and/or your account closed.

Option 2 - same as above, and it's unlikely they'll send you a cheque. Again, it will probably go back to where it came from.

Option 3 works. But it's costly. You've got the cash advance fee, the cash interest for a few days, the BT fee, then your 2.9% interest. May be worth it, but you'll lose some of the savings. You'll need to do the maths. Also need to check how long it would take you to get £3k cash from the card, with daily limits and limits of total credit limit, etc.

CLAPTON

most CC don't allow a 'positive' balance; for small amounts they don't usually bother much but for larger amounts they may bounce it back from whence it came

yes you can get cash from another card and then BT ; this may be cheaper than a loan elsewhere depending upon your circumstances

JimmyTheWig

You used to be able to do this with Egg Money, but you can't any more.
The positive balance options might work, but as has been said you risk the money being returned to your Sainsbury's card by which point you've already paid the balance transfer fee.

What are the terms of the balance transfer offer? Do you have to do the transfer in the first month or so? What are the fees for doing a transfer?
I'm thinking you might be able to spend £1000 on your other credit card one month and do a £1000 balance transfer to Sainsbury's. Then repeat for the next two months.
But as I say, this will depend on the terms.


I know this isn't what you asked, but have you thought of alternatives? Would it be possible to halve your credit card spend each month for 6 months? Then you'd have the £3k outright.
Might an overdraft from your bank be a better plan?

[Deleted User]

Deleted_User wrote: »

Option 1 - this is against the t&cs (to put the card into credit) and a large sum like that would probably be returned and/or your account closed.

Option 2 - same as above, and it's unlikely they'll send you a cheque. Again, it will probably go back to where it came from.

Option 3 works. But it's costly. You've got the cash advance fee, the cash interest for a few days, the BT fee, then your 2.9% interest. May be worth it, but you'll lose some of the savings. You'll need to do the maths. Also need to check how long it would take you to get £3k cash from the card, with daily limits and limits of total credit limit, etc.

Yeh. The way I worked it out (per £1000).

£1000 cash withdrawal on card 1 = 2.5% fee = £25
Say 10 days interest at 25.4% apr = £7
2.9% balance transfer fee on card 2 = £29

So, thats about £60 before we even start :-( (and its per £1000)

Although credit card limit not an issue. I've got loads...

[Deleted User]

JimmyTheWig wrote: »

You used to be able to do this with Egg Money, but you can't any more.
The positive balance options might work, but as has been said you risk the money being returned to your Sainsbury's card by which point you've already paid the balance transfer fee.

What are the terms of the balance transfer offer? Do you have to do the transfer in the first month or so? What are the fees for doing a transfer?
I'm thinking you might be able to spend £1000 on your other credit card one month and do a £1000 balance transfer to Sainsbury's. Then repeat for the next two months.
But as I say, this will depend on the terms.


I know this isn't what you asked, but have you thought of alternatives? Would it be possible to halve your credit card spend each month for 6 months? Then you'd have the £3k outright.
Might an overdraft from your bank be a better plan?

Yeh. Only option is to do genuine transfers then I think. i.e. Instead of paying off the £1000 every month just balance transfer and then I have the £1000 per month.

Trouble is cant get a loan. I'm an IT contractor and loan companies just dont understand it and look at it as purely temporary employment. This is despite my income being double that of what I earned as an employee!!!!

JimmyTheWig

[quote=[Deleted User];52441657]my income being double that of what I earned as an employee!!!![/QUOTE]
I'd look at this and your considerable monthly spending to ask again if you actually need a loan. Can you not just cut back for a bit and then buy whatever it was you wanted outright?

[Deleted User]

JimmyTheWig wrote: »

I'd look at this and your considerable monthly spending to ask again if you actually need a loan. Can you not just cut back for a bit and then buy whatever it was you wanted outright?

LOL. Its alll relative isnt it though - my 'considerable' spending isnt considerable to me or maybe others but it might be to some.

After all, for all you know I could be driving 100 miles to work every day? Might seem a lot buts relative to income isnt it? I dont but I do know people who do this but then earn £450-£500 a day.

FYI - Its about £700 food, £500 petrol each month that I spend. (and I dont get £500 a day but I'm not telling exactly how much!)

[Deleted User]

[quote=[Deleted User];52443279]FYI - Its about £700 food...each month that I spend[/QUOTE]

Holy Caviar, Batman! How many of you are there!?

[Deleted User]

Deleted_User wrote: »

Holy Caviar, Batman! How many of you are there!?

No caviar but I do like to eat what I like to eat. There are 3 of us....

And whereas, yes, we could do it cheaper, and I empathise with those on a low wage who have got to make savings. but thats not me. Make no apologies for that - I work hard.