Credit card transfer newbie

Blu4

Hi all,

We have always paid our credit cards off in full but last week had to put a £3,052 bill on it which will be cleared when our remortgage goes through in the next couple of months. We knew it was coming so we applied for a 0% balance transfer card in advance and have just done a balance transfer for the maximum which was £2,600.

I have just seen that our existing credit card is allowing 0% interest balance transfers. Are we Able to do a balance transfer back to the original card as soon as this one is completed and then transfer the remaining £452 to the new card! Would everything be on 0%?

Really stuck as always been good with money, but never had to use these facilities.

Thanks in advance.

Superscrooge

I'm assuming there will be at least one balance transfer fee?

If you are able to clear the balance in a couple of months, it might be cheaper to keep the remaining £452 on your current credit card and pay it off as soon as you can

Blu4

Thanks for your reply. Thank you for reminding me of that. I looked it up, checked it and forgot it in my theory above! I think you're right, it'll be cheaper to put it on the mortgage and pay anything off that we can in the meantime.
Unfortunately we've always had to use all our saving in 2 huge bills on the house within 2 months. Then this £3k was an add on to an nhs treatment. It really did all come at once ��

Ben8282

In answer to your specific question, yes everything would be at 0%.
However, I'm not sure this would be the best way to go about things.
Currently you have £2600 on the new card at 0% and £452 on the old card not at 0% APR but effectively at 0% for the time being as you only made the purchase last week and have always previously paid the card in full every month..
Is there no way you could repay the £452, perhaps by putting extra purchases through the original card that would otherwise have been made in cash or by debit card or making use of any overdraft facility you may have, thereby avoiding paying any interest on the card as you will still be paying in full every month? If the purchase was only made a week ago you still have lots of time to get the money together to make your usual full repayment.
As a matter of general principal I would caution against transferring an unsecured credit card balance to a debt secured on your home.

Superscrooge

I too would caution against adding to your mortgage. Whilst it reduces your immediate monthly payments. You end up paying loads more interest in total.

An example quoted by Martin Lewis. "If you borrowed £10,000 at five per cent over 25 years, you’d pay £7,500 interest, But at 18 per cent over five years, you’d pay less, £5,200 interest. It pays to do the sums"

Because the time period is so much less. The 18% loan costs less overall than the 5% loan