Money Transfer Credit Card?

HarlemThorne

Hey,

I recently got a 0% credit card with halifax, it's cool - I use it during the month and just pay it off in full, bought a couple of expensive items too and spread them out over 2 months instead of paying upfront, never anything I can't afford.

I was wondering about money transfer credit cards? They're different to balance transfer right? I have a bill coming up in a couple of months, about £2000 - and I was looking into a 0% credit card that would let me have this balance (I have it on my current one but that only does Balance transfers with other credit card debts or something) and transfer it to a normal debit account to take it out in cash

Anyone have any advice on if there's any kind of cards you can do this with, or any recommendations for the situation?

(Just as an fyi, technically could pay the 2k off with current money but it would leave me tight for a few months so i'd love to be able to pay it off over a few months instead, would've used my current credit card but they don't take cards, only cash)

Thanks for any help!

MrDouglas

0% cards are a great way to access cash and theres currently some good deals out there, go onto the mse credit card link and click under balance transfers, loads of great info on there.

The two obvious pitfalls, making sure you can afford to pay off card before you 0% expires. Most cards revert back to there standard variable rate (usually above 15%, sometimes as much as 30%).

And secondly, you usually have to pay a a fee when transferring money into your account, between 2-4% is the norm. Some cards will offer no fee, but these card will not offer the 0% deal duration for very long in my experience (less than 12 months).

Nebulous2

Here you go MSE link to best 0% money transfer cards.

As said you will have a fee to pay. You can save up the money elsewhere and repay the debt at the end of 0% period, as long as you make minimum payments on time each month.

There are pitfalls to mixing expenditure and BTs or MTs. For most people it is best to avoid it. If you want to spend use a different card from the MT one.

bengalknights

MT Cards are quite a cheap way of getting cash and i would recommend them if you are able to get them and need low cash value where the interest on a loan would be far higher.

Kim_13

Yes, Money Transfers and Balance Transfers are different. For your situation you want the Money Transfers (see the link posted by Nebulous2.)

Balance Transfers are for use when you are paying interest on a balance on another card. A 0% or low interest deal allows the user to pay off the first card with the new so they owe it instead, but save money on the interest payments. A balance transfer would be what you might use if you can't clear the money transfer card by the end of the 0% period, but try not to do this. Balance Transfers are not guaranteed and the card provider has to assess the application as if it were new borrowing. Transfers are typically restricted to 90% of the credit limit also.

It's important to check whether any deal is an 'up to' or not. In these cases you can be offered a shorter 0% period than illustrated, so you may prefer to go for one that guarantees at least x months if you are accepted.