Money Transfer Weird Question

Radioactive_01

So i have a card who's promotional deal is coming to an end so i will have a smallish balance attracting monthly interest. I received a bit of post from the CC company with a 0% money transfer deal and i was wondering if there is anything stopping me from doing the money transfer into my bank and then paying off the balance with money paid in thereby extending the 0% interest period. Effectively using my CC to pay off my CC to extend 0% period.

Hope this makes sense.

Thanks

Ben8282

Yes you can do this. Presumably you will pay a fee for the money transfer but that is still better than paying interest.

PRAISETHESUN

Yes, you can do this. As above - as long as the MT fee is less than the interest you'd be paying on the remaining balance then you'd stand to save money by doing so.

Paul_DNAP

How does the allocation of payment work when you pay it back in? Because you'll have the original balance on there and then the money transfer balance as well, so when you make the payment in, does it wipe the original balance, or the MT balance, or is it distributed over the entire balance?


Because if it's anything other than 100% allocated to the previous balance then it may well leave some of the original balance there when the promotional rate on that part of the balance expires.


But if you pay in first to clear the balance and then MT back out again, it ensures the balance to pay touches zero and that any new balance is the MT debt.

molerat

As above, you need to know the allocation of payments and what the existing balance is made up of. If you are not certain then the only way is to wait to repay until after the original promo ends.

SNB2019

Yes, you can do that. But if you can get a new 0% balance transfer card from a different provider, you stand to save even more money. Especially if you get one with 0% transfer fee, loads on offer. I just got a 0% from Tesco.

Hope this helps!