Balance Transfer Questions

wolf475

Hi - just a couple of questions.

1 - Am I correct that a balance transfer is effectively Card A paying off the full or part balance on Card B? So Card A initiates a payment?

2 - Does this counts as a payment to my account - so assuming it's processed in time, this can replace my regular payment to the card?

thanks.

Dobbibill

wolf475 wrote: »

Hi - just a couple of questions.

1 - Am I correct that a balance transfer is effectively Card A paying off the full or part balance on Card B? So Card A initiates a payment?

Assuming the debt is on 'card B' then yes, 'card A' (the one with the BT offer) pays off 'card B' (the one with the balance)

2 - Does this counts as a payment to my account - so assuming it's processed in time, this can replace my regular payment to the card?

Be careful, this is down to timing. If it reaches your card prior to the due date then yes.
Don't forget you cannot just stop the regular payments without checking for any trailing interest the following month

wolf475

Dobbibill wrote: »

Assuming the debt is on 'card B' then yes, 'card A' (the one with the BT offer) pays off 'card B' (the one with the balance)



Be careful, this is down to timing. If it reaches your card prior to the due date then yes.
Don't forget you cannot just stop the regular payments without checking for any trailing interest the following month

thanks - yes Card A is the one with the BT offer, card B has the balance. The BT won't clear the balance on card B so I will continue making payments to that card, I just wanted to check that assuming the BT reaches card B before the due date that I won't need to make a further payment in that month.

Dobbibill

If you have online access for card B then double check, payments due normally update within a working day or two of anything paid with most banks so it should show 'amount due N/A' or similar.

TadleyBaggie

Dobbibill wrote: »

If it reaches your card prior to the due date then yes.

Not always, depends on the card. I once did a transfer of £1400 from a Sainsburys cc to Amex a full 2 weeks before the payment date. Sainsburys still took the full £1400+ original balance via Direct Debit putting the Sainsburys cc card into a positive balance.

TheShape

Just to echo the above, check your card providers t&cs re payments affecting you regular payment. Virgin money do not deduct payments made to your from your monthly payment, neither do MBNA which I'm glad I checked because they still collected a £2300 DD despite having a zero balance. They will be returning the money to my current account but it might have been a problem had I not been expecting it.

LK1972

Hello

I would really appreciate any advice on the following, sorry it's a bit complicated!

I have an MBNA credit card with a credit limit of £6900, current balance £6200 (£4700 of this balance attracting a high interest rate, which I need to reduce)

MBNA are currently offering me a 0% balance transfer deal for 24 months.
I also have a new Tesco credit card with a 0% balance transfer deal for 32 months, credit limit £1000, max balance transfer £950. I am already in the process of transferring £950 from my MBNA balance to the new Tesco card. My question is, after this transfer is complete, can I theoretically start a cycle by transfering the £950 from my new Tesco card back to the MBNA card on the MBNA 0% balance transfer offer, and repeat this process in chunks between the two cards until all of the £4700 MBNA high interest balance is at 0% between the MBNA card and the Tesco card?

Thank you so much for any advice.

[Deleted User]

Yes, if you're happy with all the fees, and you have (and continue to have) the appropriate limits and do all the BTs within the promo window.