Santander 123 CC - balance transfer to account?

charliewocka

Hi, looking for some general advice:


Just been approved for a Santander 123 credit card and have been given £10,500 limit. I have been against having a credit card but decided to apply for one to build up credit rating. When I was approved I was surprised as obviously have a good credit rating (I'm 32, employed, no savings, good salary, recently returned to UK after working overseas).


I came out of a relationship last September and want to repay the ex £4000 he paid for me for something. He hasn't asked for it back but I want full closure as the split has gotten a bit messy. I was going to set up a SO for £400 a month into his account, but wondering whether I should instead utilise the balance transfer option and pay the full amount, and just set up the £400 monthly as my DD payment to the credit card? Is it even possible to transfer to an account? On my online banking it only gives the option of doing a transfer to another credit or store card - was just looking for general advice before calling.


So, recommendations please? I don't intend to use the credit card for day to day spending, want to limit that to my debit card account. Following the split I have pared back on all non-essential spending as I want to keep finances clear and start putting even a little bit of money away each month. Perhaps I should do a full account review with you all somewhere to get further advice!


Thanks in advance.....

grumbler

It's either balance transfer from an account or money transfer to an account.

If you wanted money in your account without paying huge interest and fees, you should have applied for a card offering 0% Money Transfers

With Santander 123 this will cost you 3% + 29.9% APR - the same as if you withdraw cash from ATM.

If it offers 0% on purchases, use the cash you 'save' on spending for paying your ex.

charliewocka

Thank you grumbler for the clarification! Much appreciated.


I wasn't looking for it specifically as I have plans in place to repay the ex, I just thought it might have been an option I hadn't realised was available. Obviously not!

CLAPTON

if you want to build up or maintain a good credit rating, then it make sense to use the CC regularly but pay in full each month : maybe set up a DD to pay in full

charliewocka

CLAPTON wrote: »

if you want to build up or maintain a good credit rating, then it make sense to use the CC regularly but pay in full each month : maybe set up a DD to pay in full

I have the DD set up for minimum payment each month. I got the card to maintain a credit rating but I wasn't expecting such a large amount. Will likely reduce the limit initially as there is no need for such a high amount. Think i'll just put my diesel on there each month to ensure something is being put on the card and paid regularly.


Thanks so far!

MallyGirl

is it a 0% on purchases for x months card? if not then you need to be paying in full rather than the minimum

charliewocka

Yes, 0% on purchases for 23 months but will be paying maximum off each month. DD set for minimum currently but will change to maximum....


So afraid of getting into debt I want to do everything I can to avoid it.

grumbler

If it's 0% don't pay more than minimum. Use the cash to pay your ex instead.

nightswimming

It's a cashback card with a £24 fee (waived for 1st year if you have a 123 bank account). It would be madness not to put all spending that can earn cashback on the card, not only do you get paid for spending but your money stays in your bank account longer, earning more interest.

If you don't buy anything you wouldn't normally, and keep the money in your bank account ready to pay off the balance when the 0% period ends (and then change dd to pay in full) then you will not have any trouble.