Balance Transfer

connors07

Hi everyone,
I am looking to get some advice with regards to how to deal with my credit card. The first credit card I've ever had.

It is 0% (Purchases) for 30 months which I have until Aug 2019 to pay off to ensure I do not pay any interest and just the money I have racked up. There is just under £9k on it. I have money in current accounts that I could use to pay it off but I have been using the credit card to build up those current accounts. I only buy on my Credit Card things that I would buy if I didn't have it, if that makes sense, I am not a frivolous spender.

I have seen Santander are doing a 27 months 0% No fee balance transfer Credit Card. I know these kind of offers can be pulled at any time and from what I've seen Santander is the longest 0% No Fee balance transfer card available. I've never had a balance transfer card before, never needed one so never kept an eye on the offers until now. Is there likely to be more cards like this available or are these offers winding down?

My rationale would be to apply for the Santander 27 Months CC, transfer the balance of just under £9k and pay back (if accepted) in 26 installments of £345 approx per month; which would comfortably clear the CC before hitting the end of the 0% with a month to spare.

I'd then apply for another 0% Purchases credit card for my usual spending; paying off the minimum each month to protect the 0%.

My main question is, is this the best way to use credit cards to our advantage? I have used the credit cards over the past 2 years or so to build up (or preserve my savings) current accounts and claim switch incentives along the way.

Also does anyone know what would be the outcome of paying off my current CC before the end date (Aug 2019)? Would I just leave the card dormant until closing it when its promotional offer comes to an end?

Any thoughts and comments are welcome,
Many thanks,

Dobbibill

BT cards do seem to be getting few and far between compared to a year or so ago. They have been known to offer 40ish months but now the longest seems to be 30 - 33 months. No-one knows for certain if they will dwindle or stop completely.

It appears Santander are offering a 'no fee BT offer' - make sure that is what you are offered during application. If a fee becomes applicable, factor that into your calculations of cost versus savings gain.

There's no guarantee you will get a credit limit high enough to move it all so have a plan B at the ready. You won't know until you apply.

You don't have to leave the card dormant/close it when the deal ends. You could use for spending that you intend to pay off in full each month which wouldn't cost you any *interest. This will also keep your utilisation lower than if you closed the card.

You'll find lots of info on what you plan to do on the Stoozing sub-board of the board.

*This is assuming the transaction is not a cash transaction.

CakeCrusader

HSBC have a 0% BT for 32 months at the moment if this is any help. It's not a no fee free card though, it's 1.4% if the BT is carried out within 60 days.



If you pay off a 0% purchase card before the end of the promotional rate then nothing happens. You should be able to carry on using the card at 0% until the promotional rate ends.