Balance transfer to card with (virtually) no balance

Magpie170808
Magpie170808 Posts: 26 Forumite
Hi,
N.B. I meant FROM card with virtually no balance! Sorry.

An idea struck me today that might allow me to borrow a couple of grand for a year or so for just the 1.9% fee (as currently offered by my existing Barlclaycard) by transferring, say £2000 "from" an MBNA credit card that currently has a balance of £1.66. This would put the account just under £2000 in credit; my plan is to use this card for as much day-to-day spending as possible, I should be able to use the credit up in about three months, just spending as I normally do; and free up the equivalent amount in cash in my bank a/c.
A couple of questions: How would MBNA look at (e.g. could they impose hidden charges) an account having a large credit balance for a while? Could the transfer be rejected due to some term that disallows balance transfers where there is little or no debt on the receiving card? The reason I want do this is my house needs roof repairs before next winter sets in and roofers tend not to accept credit cards.

Comments

  • crumpetman
    crumpetman Posts: 339 Forumite
    A balance transfer that puts a card into credit by £2000 could be rejected and the funds returned to the original card. Also, you need to check this but I think that if you are in credit then any purchases made on that card are not covered by the usual protection which credit cards offer.

    Instead, why not apply for some new credit cards? For example instead of your plan you could get a card with
    - 0% interest on purchases
    - zero fee money transfer (MBNA do one) AND a zero fee 0% Balance Transfer card (plenty about) and stooze upto your credit limit
    - cashback credit card for purchases
  • Shelldean
    Shelldean Posts: 2,388
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    I have done similar but not quite so much.

    My transfers were between MBNA and Sainsbury credit cards.

    I applied for the transfer, once I know it's happening. I withdraw cash £300 day. I usually get a window of a couple of days so I usually transfer £1000.

    Has worked for me, but don't forget you also get stung for cash withdrawal fees.
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