0.791% apr for 22 months

card_2

in a nut shell: transfer money at balance transfer rates to another credit card that has no balance, putting it in credit. Get the credit refunded to your bank account. Successful done from Barclaycard to bank account via MBNA card.

long version: I been trying to figure out how to use my credit cards to get the cheapest 0% money to help with a house move and just managed to work out a potentially new trick.

the best 0% fee i can get is with my Barclaycard at 2.9% but i have no cards in debt at the moment and the card won't do a money transfer. I remembered i once over paid my MBNA card and had to ring them up to get them to give me the money back which they did for free. so i called them and asked if they would do the same if i transferred lots of money from another card on to my MBNA card which has no balance. They said it wouldn't be a problem. so effectively it allows you to get money transfers at balance transfer fee rates which are generally lower.

if you don't have a barclaycard and get one with the current 1.45% fee 22 month 0% offer for new customers this would be an amazing trick. Equal to 0.791 % apr

somethingcorporate

Except putting credit cards into positive balance is against the T&Cs of the cards so suggesting people do this en-mass is foolish.

Typhoon2000

I am sure my MBNA CC T&Cs make no mention of putting the card into positive ballance. In fact MBNA do it all the time as I normally pay in full and also have a Direct debit setup.

somethingcorporate

If you pay in full they will not take the DD as well (or mine certainly don't).

I haven't got a copy of my T&Cs (nor do I have an MBNA card) but I am pretty sure this eventuality is covered in them.

I've read a number of threads on MSE where the above has been suggested and every time it comes back that deliberately putting a positive balance on your CC is against the T&Cs.

Edit: It appears the evidence may be largely anecdotal, one of the only issues appears to be the banks blocking it for suspicious transactions (money laundering): http://www.lovemoney.com/news/credit-cards-current-accounts-and-loans/credit-cards/820/dont-let-this-happen-to-your-credit-card

Typhoon2000

MBNA take DD's even if you pay in full or even overpay (to take into account spending since the statement).
T&C's https://apply.mbna.co.uk/UKNeoCCapp/entry?wicket:interface=:0:components/linkToTermsPdf::IResourceListener::&null

card_2

This worked this week, I put my MBNA £7300 in credit with no problems and did the credit refund over the phone and they did it without question. I also explicitly asked them on the phone if this would be ok before I did it and they said it would be no problem.

Eonel

You were lucky to get away with this for £7300 & it is not good advice for others.

It is possible to get small positive balances refunded to a bank account, but credit card companies will watch out for large positive balances and will not refund.

Large positive balances are a Money Laundering indicator.

card_2

Eonel wrote: »

You were lucky to get away with this for £7300 & it is not good advice for others.

It is possible to get small positive balances refunded to a bank account, but credit card companies will watch out for large positive balances and will not refund.

Large positive balances are a Money Laundering indicator.

I think being honest and upfront about what you are doing is the key. I told MBNA exactly what I was doing and they were fine with it. Other credit cards might have a problem with this but MBNA does not. It seem some responders take issue with the facts of this situation for some reason?