Barclaycard's offer for existing customers

AlexInExile

just received a letter from Barclaycard. It is offering a 0% on balance transfers until May 2008 with 3% handling fee.
My question is that if I use the attached cheques to withdraw, say 1K, and put in a bank acocunt with an interest above 5%, or to repay aprt of the capitals in the mortgage with has an interest rate much higher than 3%, I will be able to save/earn some money from the Barclaycard's money. Right?

Did anyone receive the offer? What is the catch in this deal?;)

do_it_today!

Hi :hello:
I am new to this so dont take as gospel -
I am with barclays too and have not received an offer yet - I would call them up and check what the status of the cheques I believe they usually class them as cash advances which are generally hediously expensive so read the small print info they usually send out with the offer first

Milarky

In a phrase, 'order of payments'. With 0% until May 2008 (11 months?) you should have unpaid purchases balance on the card before you apply for this since those will leap to standard interest rate and stay there until the balance is cleared - and the promotional balance clears first (the old 'cheapest debt first' trick)

It's always good advice to speak to Barclaycard staff first - and get them to confirm details like this - which will avoid misunderstanding and get you out of trouble if they then don't do what they say they should.

brian535

I've just had a similar offer of 0% on a cheque until August 2008. I have confirmed with Bcard that I can write the cheque to myself - and I don't have any existing debt on the card nor will I use it for purchases etc in the next year (I stopped in protest about them withdrawing profiles points and use a cashback one instead). So borrow £10,000 on which fee is £300. Invest at after tax rate of say 5% gives me £500, profit £200. I will have to make minimum repayment each month which reduces that profit a bit but even so it seems worth it. Even if the fee is charged interest (and bcard told me it wasn't) at normal 12.9% or even 27.9% I still win.

Is there a catch? I know Martin is dead against credit card cheques but I can't see how they will profit if I do it as set out above.

Voyager2002

brian535 wrote: »

I've just had a similar offer of 0% on a cheque until August 2008. I have confirmed with Bcard that I can write the cheque to myself - and I don't have any existing debt on the card nor will I use it for purchases etc in the next year (I stopped in protest about them withdrawing profiles points and use a cashback one instead). So borrow £10,000 on which fee is £300. Invest at after tax rate of say 5% gives me £500, profit £200. I will have to make minimum repayment each month which reduces that profit a bit but even so it seems worth it. Even if the fee is charged interest (and bcard told me it wasn't) at normal 12.9% or even 27.9% I still win.

Is there a catch? I know Martin is dead against credit card cheques but I can't see how they will profit if I do it as set out above.

Are you sure you can get a return of five per cent after tax?

johnllew

Voyager2002 wrote: »

Are you sure you can get a return of five per cent after tax?

If you're liable at the basic rate, Icesave pay 6.20% AER = 4.96% net. Pretty close; ICICI pay 6.30% AER = 5.04% net but I'd rather deal with Icesave.

payless

be careful though to make sure its really worth your while.... when taking into account the missings days interest when drawing down/ setting up deposit accounts / repaying / cost of interest on fee ( if payable) .. do you really get a full year interest on your savings

PLUS remember the interest ( in full not just the profit) is used in various calculations and can effect
things like Child Tax credit