Balance Transfer Question

noakesc

Hi All,

I was hoping someone may be able to help me with a question I have regarding balance transfer credit cards.

I am looking to buy something, but I am currently a little bit short of the total amount needed for the purchase.

Can I get a 0% balance transfer credit card to transfer x amount in to my own current account, to then make this purchase?

Obviously, I will be paying off the credit card over the term.

I must also mention that my current account is not overdrawn and has a positive balance.

The only reason I ask is that I can only ever read about balance transfers being used to pay off existing loans etc, not for something like this.

Looking forward to hearing your replies.

Thanks, Charlie.

CherlokHomes

Can you not apply for a 0% purchase card

YorkshireBoy

6 months 0% enough?...

http://uk.virginmoney.com/virgin/vaa-amex/white/white-preapply.jsp ('money transfers' have a 2% fee)

29 months 0% here (but with a 4% fee)...

http://www.mbna.co.uk/credit-cards/mbna-credit-card/?MC=UCBMBN003R0 (scroll down to 'money transfers')

noakesc

CherlokHomes wrote: »

Can you not apply for a 0% purchase card

Hi,

I could, but I keep hearing that the amount offered on the purchase card is decided on application and I previously asked the question if I can add money to the purchase card to complete a purchase of a higher amount and it did not appear that I can.

So to save myself getting a purchase card for £2,000 and wishing to make a purchase of £5,000, which I can't, I thought this method may just be easier.

Plus, I will only have to pay the balance transfer fee and not a fee plus a credit card fee when making a payment in store.

Thanks.

noakesc

YorkshireBoy wrote: »

6 months 0% enough?...

http://uk.virginmoney.com/virgin/vaa-amex/white/white-preapply.jsp ('money transfers' have a 2% fee)

29 months 0% here (but with a 4% fee)...

http://www.mbna.co.uk/credit-cards/mbna-credit-card/?MC=UCBMBN003R0 (scroll down to 'money transfers')

Thanks, I may need something inbetween, but I will have a look myself. My question though, is if it is possible to use this money to go to a current account that is not overdrawn, to then make a purchase.

It may be a simple answer and I can do so, but I would just like confirmation as I can find no examples of anyone doing what I am looking to do.

Thanks.

YorkshireBoy

noakesc wrote: »

Thanks, I may need something inbetween

Those are your two best options.


What's the point in getting a 16/18/24 month card when the fee is the same 4%?

My question though, is if it is possible to use this money to go to a current account that is not overdrawn

And if you'd scrolled down to 'money transfers' as I suggested you'd have your answer. If you want someone to say yes, rather than point you to the relevant information, then the answer is yes. I wouldn't take the word of a complete stranger on an internet forum, which is why I assumed you wouldn't do either and provided a link.

...I can find no examples of anyone doing what I am looking to do.

Have you ever heard the word 'stoozing', or seen the stoozing board on this forum?



People have been making money (in the past!) by taking cash from their credit cards and placing it in savings accounts.

noakesc

YorkshireBoy wrote: »

Those are your two best options.


What's the point in getting a 16/18/24 month card when the fee is the same 4%?And if you'd scrolled down to 'money transfers' as I suggested you'd have your answer. If you want someone to say yes, rather than point you to the relevant information, then the answer is yes. I wouldn't take the word of a complete stranger on an internet forum, which is why I assumed you wouldn't do either and provided a link.Have you ever heard the word 'stoozing', or seen the stoozing board on this forum?



People have been making money (in the past!) by taking cash from their credit cards and placing it in savings accounts.

I wouldn't necessarily say they are my best options. I have seen others with a lower fee for a period in between those two, which better suits me. Better still, I see Barclaycard are offering a 30 month 0% balance transfer for 2.89%, although I understand they may be more strict on those who apply.

Anyway, this doesn't matter, I will now go ahead and get one as your link did infact answer my question.

JimmyTheWig

noakesc wrote: »

I wouldn't necessarily say they are my best options. I have seen others with a lower fee for a period in between those two, which better suits me. Better still, I see Barclaycard are offering a 30 month 0% balance transfer for 2.89%, although I understand they may be more strict on those who apply.

Stop right there a minute!

The Barclaycard balance transfer is for paying off a different credit card rather than for transfering money into your bank account. You don't have a credit card debt, so this is of no use to you.
I'm not saying that YorkshireBoy knows everything, but he knows an awful lot about this area of personal finance. If he says something is your best bet then it probably is. I like the fact that you are looking for better options, but be very wary of anything that _appears_ to be better than something YB suggests!

JimmyTheWig

noakesc wrote: »

So to save myself getting a purchase card for £2,000 and wishing to make a purchase of £5,000, which I can't, I thought this method may just be easier.

I don't know what you are planning on buying or from where, but the vast majority of places will allow you to pay for something via two different methods. E.g. you could pay £2000 on credit card and £3000 cash.

Plus, I will only have to pay the balance transfer fee and not a fee plus a credit card fee when making a payment in store.

Not quite sure what you mean by "fee plus a credit card fee". I accept that some places charge extra to allow you to pay on credit card. Whether this is higher or lower than the 4% balance transfer fee to get money into your current account will depend on the store. But I don't see why you would be paying two fees for doing it this way?

noakesc

JimmyTheWig wrote: »

I don't know what you are planning on buying or from where, but the vast majority of places will allow you to pay for something via two different methods. E.g. you could pay £2000 on credit card and £3000 cash.


Not quite sure what you mean by "fee plus a credit card fee". I accept that some places charge extra to allow you to pay on credit card. Whether this is higher or lower than the 4% balance transfer fee to get money into your current account will depend on the store. But I don't see why you would be paying two fees for doing it this way?

Thank you for your replies, I didn't know that there were such different types of balance transfer cards, which I will now keep an eye out for!

All I was getting at with the example above is that if I was to buy on a credit card, I believed that I would be charged say 4% fee from the card company for the 0% period and then possibly charged say 3.5% by the store for making payment via this method. Again, I am probably wrong about this and have completely over thought it.

I may also have to make the actual purchase online, so splitting over multiple cards was possibly not an option.

Anyway, thanks for the help.

JimmyTheWig

noakesc wrote: »

if I was to buy on a credit card, I believed that I would be charged say 4% fee from the card company for the 0% period and then possibly charged say 3.5% by the store for making payment via this method. Again, I am probably wrong about this and have completely over thought it.

You are right in saying that you have over-thought it!
With a 0% for purchases there is no fee from the credit card company to you for using the card to make purchases.
There will only be the fee that the store may charge.
If the store is charging 3.5% then that is better than a 4% fee to transfer the money into your bank account.

I may also have to make the actual purchase online, so splitting over multiple cards was possibly not an option.

Good question. I don't think that is generally an option.
But they may well enable you to do this if you contact them first.