Balance transfer/Bank transfer.. same thing?

flambo33

So i see all the hype about 0% balance transfer credit cards for helping people get debt free. What about if I need to get into a little debt. for example if we have tradesmen coming in to do some work and they don't take credit card how would i go about transferring a balance of say £4000 from my credit card to my bank to withdraw as cash and keeping at 0% interest (i know about the X percentage for balance transfers) is this the same for getting the money cash? or would it bypass all offers and charge interest instantly?

Ebe_Scrooge

Balance transfer - you have an existing debt on a credit card, on which you're paying interest. You transfer this debt to another card ( for a fee ) which charges 0% interest. So you're no longer paying interest on the debt, but you need to ensure you pay off the balance on the new card before the promotional period ends - as well as paying at least the minimum payment to the new card every month.

"Super balance transfer cards", as they're often known, or money transfer cards - they will deposit an amount into your bank account, and put that amount ( again, plus a fee in most cases ) onto your new credit card, which you need to pay off as above.

Both of these will usually only be offered to those with a good existing credit history.

Of course, for maximum returns, you don't get into debt in the first place - you save up and then get the work done and pay the tradesmen in cash when you have got the funds in place

flambo33

Ebe_Scrooge wrote: »

Balance transfer - you have an existing debt on a credit card, on which you're paying interest. You transfer this debt to another card ( for a fee ) which charges 0% interest. So you're no longer paying interest on the debt, but you need to ensure you pay off the balance on the new card before the promotional period ends - as well as paying at least the minimum payment to the new card every month.

"Super balance transfer cards", as they're often known, or money transfer cards - they will deposit an amount into your bank account, and put that amount ( again, plus a fee in most cases ) onto your new credit card, which you need to pay off as above.

Both of these will usually only be offered to those with a good existing credit history.

Of course, for maximum returns, you don't get into debt in the first place - you save up and then get the work done and pay the tradesmen in cash when you have got the funds in place

Are these super balance transfer cards hard to acquire for your average joe? we'll need an emergency re wire

Ebe_Scrooge

What do you call "Average Joe ?":)

No, for someone with a decent credit history they'll be easy enough to get. Without knowing you circumstances I really can't give any helpful advice, other than the usual - are you registered on the electoral roll, do you have have a steady income, do you have a reasonably low amount of existing debt, have you always paid your debts on time, etc. ?

I would ask, why do you need an "emergency rewire" ? Is it unsafe ? Does it have to be done right now ? Have you had at least 3 quotes from properly qualified electricians ?

Runningfast

flambo33 wrote: »

Are these super balance transfer cards hard to acquire for your average joe? we'll need an emergency re wire

I have 2 cards that offer both Balance and Money transfers. The cards I have offer new 0% balance and money transfers every month. I am making use of a 0% money transfer deal for 18 months with 1% fee. If I carried out the money transfer today it would be 0% until August 2017 but a 2.9% fee. The other card is offering 24 months money transfer for 2.9% fee if I was to action it this month. I have seen fees offered below 1% and terms spanning more than 2 years at 0% many times.

My cards are with Barclays and Tesco. I would say I am an average joe but with a lower than national average salary but no bad marks on my credit history.