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Balance Transfer Cards
Griffinian
Posts: 1 Newbie
in Credit cards
Why isn't it possible to use a credit card with a 0% deal to pay off a loan or overdraft that has a high interest rate ? Why is it only allowed to swap debt from a different credit card with the usual interest rate ?
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Comments
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My Virgin card allows you to transfer funds into your current account which would obviously pay off the overdraft or could be used then to pay of a loan from your bank account. I believe this is possible with cards in the MBNA Group.0
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It is possible!Griffinian wrote: »Why isn't it possible to use a credit card with a 0% deal to pay off a loan or overdraft that has a high interest rate ?
Take a look here...
http://www.stoozing.com/credit-cards/super-balance-transfers.php
Be sure to read the small print as there are different methods required depending on the card chosen.0 -
yes, SBTs can be very useful. getting loans onto a card deal can save a lot of interest.
it has been known for credit card purchases to be made and then refunded onto a debit card too....which avoids the fee altogether. combined with a card with a long term purchases deal, can be a belting deal :A0 -
Hi, do you know if you have an offer from MBNA for a cash advance 0% interest rate deal, you can take this, and then use the cash in your current account to then effectively pay off an existing balance on your MBNA card? surely they would not be able to track the cash back to the card once is has gone into my santander account? because if i could do this i can effectively put the balance on my card into a 0% interest for 12 months....0
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Yes you can.Hi, do you know if you have an offer from MBNA for a cash advance 0% interest rate deal, you can take this, and then use the cash in your current account to then effectively pay off an existing balance on your MBNA card? surely they would not be able to track the cash back to the card once is has gone into my santander account? because if i could do this i can effectively put the balance on my card into a 0% interest for 12 months....0 -
As pointed out it is possible with a small number of the CC lenders. In most cases maybe they consider CC debt is typically relatively short-term debt and they don't want to take on people's debts such as loans which are relatively long-term.Griffinian wrote: »Why isn't it possible to use a credit card with a 0% deal to pay off a loan or overdraft that has a high interest rate ? Why is it only allowed to swap debt from a different credit card with the usual interest rate ?loose does not rhyme with choose but lose does and is the word you meant to write.0 -
Hi, do you know if you have an offer from MBNA for a cash advance 0% interest rate deal, you can take this, and then use the cash in your current account to then effectively pay off an existing balance on your MBNA card? surely they would not be able to track the cash back to the card once is has gone into my santander account? because if i could do this i can effectively put the balance on my card into a 0% interest for 12 months....
You could use the offer in two ways.
1/ If you had 2 MBNA cards, both attracting interest, you aren't allowed to transfer between cards, but nothing stopping someone doing a money transfer into their bank from one card, then paying the other card off.
2/ If you had 1 MBNA card, say with a £6k limit and a £2k balance attracting interest. You can transfer £2k into your bank, then pay the 2k back off card.
In both cases, you end up with 4% on top of the amount transferred due to the transfer fee and in the 2nd case, you obviously need to have less than 45% of the card limit as a balance, otherwise it wouldn't work, as you can only transfer upto 90% of the card limit.0 -
Hi, do you know if you have an offer from MBNA for a cash advance 0% interest rate deal, you can take this, and then use the cash in your current account to then effectively pay off an existing balance on your MBNA card? surely they would not be able to track the cash back to the card once is has gone into my santander account? because if i could do this i can effectively put the balance on my card into a 0% interest for 12 months....
yes, do it:A0 -
Or, if you have no MBNA cards, but a NatWest or RBS one, along with a card issued by neither of these which has a 0% offer, there's another option - money transfer from the NatWest/RBS to current account (no fee, but charged interest at purchase rate), then BT to the 0% card from the NW/RBS card.
You'll pay a few days interest and the BT fee from the third party card, but it's a way around (and potentially less than MBNA charge - they usually take 4-5% for money txfers).
I cleared my NatWest personal loan this way
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