Is it worth overpaying to top-up?

Fingerbobs

I've currently got a Santander 0% BT card maxed-out.

Unusually, this card allows BTs at any time during the 0% period without any fees being charged, so it's possible to 'top up' the BT balance during the term to keep it maxed out, which I've been doing on a sporadic basis.

The minimum BT amount on this card is £100, but the minimum payment due each month is less than this, so paying the minimum payment does not create enough available credit to perform another BT.

For the last couple of months, I've been making an additional manual payment each month to reduce the balance sufficiently to allow me to BT another £100 (from my main daily spending card) and max-out the Santander card again.

My brain is struggling to work out if there is actually any advantage to doing this, as the additional manual payment then reduces the 'pot' on which I'm earning interest, but then my next payment to my daily spend card is reduced by this amount.

Any comments?

[Deleted User]

Not really. You're clearing a 0% debt in order to add to a 0% debt.

Getting the balance a few quid higher isn't worth the effort.

Fingerbobs

But if I just let the DD make the minimum payment, I'm then not earning any interest on that amount. If I make an additional payment in order to then perform another Balance Transfer, I'm effectively keeping hold of the minimum payment and earning interest on it, because I then don't need pay that amount off the other credit card.


OK, it's pennies, but I think I'm fractionally better off doing this than just letting the minimum payment whittle away at the balance until there's enough headroom to do another Balance Transfer.

JimmyTheWig

Yes, doing what you are doing is theoretically better. Whether it is worth the effort is up to you...

redux

It might have been simpler to do the original transfer then another just before the deadline for transfers, rather than every month.

JimmyTheWig

redux wrote: »

It might have been simpler to do the original transfer then another just before the deadline for transfers, rather than every month.

According to the OP, there is no deadline for this card.

redux

JimmyTheWig wrote: »

According to the OP, there is no deadline for this card.

I slipped up not noticing that, maybe every 2 or 3 months then

Fingerbobs

redux wrote: »

I slipped up not noticing that, maybe every 2 or 3 months then

Yes, that's the alternative - just wait 2 months then top-up again.


It's kind of a hobby for me, so the extra "effort" of overpaying and topping up every month doesn't matter to me :-)

[Deleted User]

scandalpk wrote: »

A'm also have situation and my mind is struggling but I could not find the solution.

In the unikely event this isn't spam, can you explain the problem in more detail?