0% Money Transfer Credit Card

luckylouise08

I have been reading about 0% Money Transfer Credit Cards but I would like to know a bit more about this type of card.

I have a credit card that I am spending half my wages paying off each month and I think that it would be good to get a 0% Money Transfer Credit Card to ease the pressure of so much money being put towards my credit card bill.

I believe that having a 0% Money Transfer Credit Card would allow me to transfer money into my bank account that I could use to pay off my credit card. The maximum money transfer being the credit limit that I am allowed on this card.

So I think that if I do the money transfer, it would be good to stick that money partly on my credit card bills and partly in a savings account during the 0% period to save a bit of money.

My questions are:-
Can I transfer 100% of the borrowed money to my bank account without making my credit rating look poor?
Is this something that I can do (transfer money to stick in a savings account and pay off my other credit card bill?)

YorkshireBoy

Why not pay the other card off with a balance transfer card? It'll be around half the cost of a money transfer (2% vs 4%).

Speaking off 4%, why would you borrow cash at 4% to save at less than 2%?

You may not make your credit rating "poor", but it'll be less "good" than it was before, especially if you're increasing your debt (as you would be if you borrowed more than you owe, ie saving the rest).

In short, you need to re-think your plan.

luckylouise08

YorkshireBoy wrote: »

Why not pay the other card off with a balance transfer card? It'll be around half the cost of a money transfer (2% vs 4%).

Speaking off 4%, why would you borrow cash at 4% to save at less than 2%?

You may not make your credit rating "poor", but it'll be less "good" than it was before, especially if you're increasing your debt (as you would be if you borrowed more than you owe, ie saving the rest).

In short, you need to re-think your plan.

Thanks for your reply. My current account offers 5% interest on my money so I would be putting any left over money into that account if I did do a money transfer.

I am just pondering my options really. Perhaps a balance transfer is the right way to go, I'm not sure.

I could probably scrape the money together to pay off my credit card. It's a 0% on purchases credit card but I think I will have to put my money into a savings account and not touch it to be able to completely pay it off if I do not get a loan or borrow money in some other kind of way. I always pay my other bills off in full and on time so I am just trying to get an idea of what my best option would be, should I be unable to afford to pay the card off on time. Any thoughts would be most welcomed.