Shifting available credit.... a question.

TonyIce

Hello y'all - this is my first post but I've been reading the site for some time and have really changed my attitude to money over the past few months. As a result I'm now out of an overdraft for the first time in..... some time. Anyway, that's just a general thanks for all the good advice and sharing of information on this site / forum.

So, on to my question. I really don't know about the legalities of this, so advice is much appreciated. It's all hypothetical, so don't worry - I'm just intrigued by the process, I still have plenty to learn. Excuse me if I step over any lines or if it's a dumb question.

Imagine a chap were to apply for, and be approved for, a credit card with 0% on purchases for 12 months, and 0% on balance transfers for something like 6 months but with a 3% fee. Chap is given a credit limit of £2000.

Chap would like to put £1000 into a savings account, he thinks it could be done by sending £1000 of the available £2000 via paypal to a chum / family member which they can then withdraw to their current account and transfer back to chap, fees-free.

£1000 goes directly to high-interest savings and the minimum repayment on the credit card is made each month from a current account.

What has Chap missed?

bluep

Chap has missed paypal fees for receiving money!

TonyIce

bluep wrote: »

Chap has missed paypal fees for receiving money!

Chap thought there were none over a certain amount. Now Chap says that, Chap sees it makes no sense. Chap must read up in more detail, but Chap is grateful for the reply.

Back to Chap's drawing-board.

hillendale

You could use an egg money c/card if you have one already to route to cash from one credit card - egg money -then your current account
hope this helps

bandraoi

Or just use the credit card for stuff you would normally buy and put the money into a bank account, paying off the minimum.

My understanding is that using an egg card is a b/t so will only be 0% for 6 months with a 3% fee (ie not worth it with interest rates at 6% or thereabouts)

YorkshireBoy

bandraoi wrote: »

My understanding is that using an egg card is a b/t so will only be 0% for 6 months with a 3% fee (ie not worth it with interest rates at 6% or thereabouts)

hillendale was talking about the Egg Money card, which offers fee-free BT's.

BTW, the Egg Card offers (up to) 12 months 0% on BT's.

bandraoi

Imagine a chap were to apply for, and be approved for, a credit card with 0% on purchases for 12 months, and 0% on balance transfers for something like 6 months but with a 3% fee. Chap is given a credit limit of £2000.

The money has to go from original credit card - egg money card - bank account in hillendales example.

The b/t fee comes up when you transfer from the original credit card - egg money card. In the original example, that's 3%, which is a fair chunk of change to lose.

particularly when

the b/t offer on the original posters example is 6 months and the 0% purchases is 12 months. If he can run up the balance he wants ASAP and then have the equivalent of a fees free b/t sitting in his savings account for up to a year.

YorkshireBoy

bandraoi wrote: »

...<snip>...

Sorry, I misread your post (and it's reference to the OP's scenario).