Card Shuffle?? Can I balance transfers from a card and then back to it to save?

ad_cal

Hi Everyone,

I really hope someone can help, I have scoured the internet with no look on whether I can transfer a balance from one card and back to benefit form the discounted fee?

Here is the example I am trying to solve, can you please take a look and see if you agree it would be greatly appreciated.

card / interest rate / balance / limit / new offers
1 24% £1,000 £3,000 n/a 0% Fee
2 19% £2,250 £5,000 6% 2.9 fee
3 23% £5,215 £,6,250 0% 6 months 3% fee

Total £8,465

I plan to transfer £2,000 from card 3 to card 1 with no charge.
Then transfer £2,750 from card 3 to card 2 at a charge of £80

This will leave card 3 with a balance of £465

I then plan to transfer £3000 from card 2 to card 3 at a charge of £90(do you know if this will take the high interest first leaving the new balance on the card of £2,000 at 6%)

And then transfer £3,000 from Card 1 to card 2 at a charge of £87

In my head this will leave the cards in this state however I am unsure the banks will see it that way and not just charge me for the transfers and leave me on the high interest rate for the balance.

After if my view is correct

card / interest rate / balance / limit / new offers
1 24% £0,000 £3,000 n/a 0% Fee
2 now all 6% £5,000 £5,000 6% 2.9 fee
3 £465 @ 23% £3,465 £,6,250 0% 6 months 3% fee
£3,000 0% 6 months
Total £8,465

+ £257 in charges

On my calculations I am currently paying roughly £153 a month interest
If this works I will be paying £15.5 pm on card 2 and £8.65 on card 3 for 6 months meaning in 2 months I have paid for the charges in savings.

I would really appreciate some advice form someone who may well know the answer and am I thinking correctly here.

Thanks in advanced.

Adam

bengalknights

There is nothing to stop you doing this at all

Marcio45

Seems like a plan. But do be carefull that most cards only allow 90 or 95% of the limit to be used when doing BT's. And being so close to 100% of the limit it is easy to make a mistake and going over your limit and lose all promotional offers.

JimmyTheWig

ad_cal wrote: »

I then plan to transfer £3000 from card 2 to card 3 at a charge of £90(do you know if this will take the high interest first leaving the new balance on the card of £2,000 at 6%)

It will (these days) take the highest interest rate balance first.
The only thing to sometimes watch out for is whether a recent transaction has hit the account or not.
For example if you had a balance at a low interest rate and then took on a balance with a high interest rate you would need to be sure that the high interest rate balance was actually on your account before paying it off.
But in your case the high interest balance is already there, so no problems doing this.

JimmyTheWig

The only possible problem is that if the credit card company sees you as a liability then they might reduce your limit as soon as you move a balance away from them. In which case you couldn't then move the balance back again.
Though given you have at least £1000 available on each card this doesn't appear to be a problem for you.

ad_cal

Thanks for the responses everyone really appreciate it. Now to execute the plan

JimmyTheWig

ad_cal wrote: »

Now to execute the plan

I suggest you write down (on paper) clearly what your plan is.
Then tick off each stage as you go.

JimmyTheWig

Just had a thought. What's your cashflow like? Are you just paying minimum payments?
Sometimes transfer fees are added to the regular minimum payment to get a larger than normal minimum.

ad_cal

Cheers Jimmy, Something to consider the regular min payments may be added, I should be able to cover this with my existing cashflow