Most effective money transfer option?

Hi All:)

I've been lurking around on this forum for years!! And I must say I keep coming back as I have gained valuable information from this forum, so many thanks to you all.

Can I use the Halifax clarity CC to withdraw cash fee free, say £1000 and then do a BT from another account to pay off the debt? And what would happen if I kept repeating this process? Or would it be better to use the MBNA Everyday plus CC which also has fee free cash withdrawals? Which card is better and why?

Thank you


  • Superscrooge
    Superscrooge Posts: 1,171
    First Anniversary Name Dropper First Post
    From the Halifax Website

    Interest-free period
    Maximum 56 days for purchases if you pay the full balance shown on your previous and current statement on time.
    No interest-free period on balance transfers or cash withdrawals.

    So whilst there is no 'cash withdrawal' fee. It appears you still pay interest on any cash you withdraw
  • It is not possible to do a Balance transfer from another card for a higher amount than the existing credit card debt.
    For example:
    Apply for Virgin card (For example)
    They ask how much you want to transfer (You say £2000)
    Current debt on Halifax Card £500
    Balance transfer from Virgin card to Halifax for £2000
    Halifax card now £1,500 in credit
    Withdraw £1,500 from cash machine
    No interest to pay because you are withdrawing your own money
    £1,500 in cash to earn interest in bank, Pay off Overdraft or spend on whatever you like!

    Seems like a good plan to me. Can anyone see any floors?
    Single Girls have more fun, but we like saving money too!
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  • Sirmaggie wrote: »
    Seems like a good plan to me. Can anyone see any floors?

    Floors. Lol. :p

    Anyway, one flaw could be that having £1500 of your own money on a credit card might be against the T&Cs, and be a red flag to the lender re: money laundering.

    Last year I accidentally overpaid a stoozing card by £48 - I paid off the full balance manually, but the minimum repayment also went out by direct debit. I didn't realise for a few months, so I googled what happens if your credit card owes you, not the other way around. Evidently for a small balance of £48 that I put on there accidentally, it's not an issue. I just spent that money on the card once I realised it was there.

    However, in my googling, I came across people saying that they've had problems - the card blocked, for example (see and given that you'd be doing it deliberately, it may be a deliberate breach of the card's T&Cs.

    £1500 is a large sum and would probably be red flag to the lender that something's not quite right. I've no idea what Halifax could do about it though, apart from block your card - I think all they know is £2k got put on the card, not that it came from a Virgin balance transfer card.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541
    Name Dropper First Post First Anniversary
    Sirmaggie wrote: »
    It is not possible to do a Balance transfer from another card for a higher amount than the existing credit card debt.
    Did you mean to say "is it not", rather than "it is not"? As it is, it looks like a statement rather than a question.
    Can anyone see any floors?
    I'm the glass half full type, so I only see ceilings. ;)

    But the only 'flaw' I see is a condition in the Halifax T&Cs specifically prohibiting the creation of a positive balance in the way you have described. Other than that, your plan is good! ;)
  • Tragen
    Tragen Posts: 277
    First Anniversary Photogenic First Post Combo Breaker
    Is a balance transfer to a pre-paid cc not a possibility? I've not looked into it, just a thought!
  • Hi All

    Word of warning I decided I would make use of a Balance TF card rather than use my own money to pay something off, Ive done this before a long time ago and it worked a treat. This time though be very ware of the sharp practice the Post Office card tries

    1. Once you sign up they take quite a while to make the transfer so don't do it clos to your payment date on your current card.
    2. I got a statement through the website view only with no details of when payment was due!
    3. The statements are apparently sent out in the post (mine wasn't)
    4. The first statement has now defaulted as a late payment even though I have not had more than 10 days since transferring the balance!
    5. Because of the late payment there is now a charge for £12.00
    6. The 0% rate has now been lost (wen I spoke they could not confirm this though.
    7. I literally have just received the letter stating there is a late payment fee applied to my account but no mention of the balance transfer rate being lost!
    8. The Post Office Card website does not offer the facility to pay the card through it nor does it have a secure message service or the ability to send and email statement or reminders!
    9. To pay the card your have to raise a payment through your own bank website or visit a branch!
    10. Most correspondence is via Post so take days.

    The guy I spoke to on the phone was helpful and said he would raise a complaint for this but that it could take up to 8 weeks! and then maybe passed to the FSO.

    So it seems 0% deal they are offering may be a good deal but ease of use and dealing with them is in the dark ages and it would appear that they are operating some sharp practices with regard to that first statement and its payment date!

    I guess there is also the issue of it effecting your credit rating as it seems that the info on site is not real time and you have to have the paper statement raised before you no when its due!

    Very old fashioned and hard work other cards offer the same deal with only a few less months credit so I would go with them as my TF was started on the 03/01/16 and then a statement that was never sent was due on the 11th Of January!
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