Money Transfer Cards

Raffers

So, according to MSE Credit CLUB, I've got the opportunity to 100% qualify for one of these cards (Virgin) and am tempted, since I want to get DIY jobs around the house done. Having access to 0% fund borrowing is appealing. However, I just wanted to ask one thing that I can't see answered anywhere re these cards. I know that you are supposed to not withdraw from them and instead ask the company to forward funds to your current account. But do you have multiple goes at this or do you have to advance the full limit in one go?



*Hypothetical situation* : if I get given a limit of £3K, can I ask to have funds released as I think I'd need them? (i.e £1K this month and maybe £1.5K next month, rather than all £3K at the onset?)

Willing2Learn

You need to stick within the timescale offered. So, for example most cards you can do unlimited transfers during the 60 or 90-day promotional transfer fee window.

Edit: Example
MBNA up to 28 months 0%, 2.99% fee (must transfer within 60 days)

You would need to make all the transfers within 60 days to get the 2.99% transfer fee. 0% interest lasts for up to 28 months.

YorkshireBoy

There is often a 'window'...typically 30/60/90 days. Do the Virgin product T&Cs specify such a window? How long is it?

Raffers

Unsure. Will need to go check it out. Thanks.

Dobbibill

As said it is in the first x amount of days - cards vary with provider.

Also you won't be able to have the full limit as a MT - you are limited to 95% of the limit in most cases to allow for fees.

Terry_Towelling

Surely, it doesn't matter whether you take the cash in one lump or two, or three etc.

If there is a percentage fee attached, that will end up being same - albeit not all added to the debt at once. Neither are you paying interest on the debt.

Why not take all that you need up front, stick it in an easy-access savings account to gain some interest and spend as you need. You could even cycle some of the cash into an easy-access regular saver to gain an even higher interest payment.

The only downside might be the minimum payment is a bit higher from the outset.

Raffers

Yes I think your logic sounds right. However, I think the point I didn't properly consider was the 4% fee - I'm used to thinking about this from the context of a Balance Transfer situation. So, if I was to be given £3K from Virgin and then I used that as cash, even though it will be at 0%, I'll still be charged a one-off lump sum of £120. That is not desirable and I may have to reconsider my options.

Terry_Towelling

Sounds like what you really need is a 0%-on-purchases card (ideally for a protracted period) if all you are doing is buying stuff for DIY use. No handling fee, no interest and you spend as and when you need - as long as the stuff you need is actually available to buy on credit cards.

[Deleted User]

Terry_Towelling wrote: »

Sounds like what you really need is a 0%-on-purchases card (ideally for a protracted period) if all you are doing is buying stuff for DIY use. No handling fee, no interest and you spend as and when you need - as long as the stuff you need is actually available to buy on credit cards.

And is purchased within the 0% term as well

ProDave

Raffers wrote: »

Yes I think your logic sounds right. However, I think the point I didn't properly consider was the 4% fee - I'm used to thinking about this from the context of a Balance Transfer situation. So, if I was to be given £3K from Virgin and then I used that as cash, even though it will be at 0%, I'll still be charged a one-off lump sum of £120. That is not desirable and I may have to reconsider my options.

I am doing just this for much the same reason.

However I will not be making a cash withdrawal. Instead during the 60 day promotion period, I will be making credit card transfers. That will enable me to pay all our credit card bills for 2 months by credit transfer, incurring only a 3% fee. The money that would have been used to pay those other cards normally will go to the savings account instead to fund my project.

3% fee averaged over 29 months, is like having a loan at an annual rate of 1.25% so pretty damned good.

MallyGirl

ProDave wrote: »

I am doing just this for much the same reason.

However I will not be making a cash withdrawal. Instead during the 60 day promotion period, I will be making credit card transfers. That will enable me to pay all our credit card bills for 2 months by credit transfer, incurring only a 3% fee. The money that would have been used to pay those other cards normally will go to the savings account instead to fund my project.

3% fee averaged over 29 months, is like having a loan at an annual rate of 1.25% so pretty damned good.

hopefully you are doing this from a 0% BT card not a MT card