Pay off credit card with money transfer from same card?

Brave321

Hello folks, hope one of you knowledgeable people can help me out with this, maybe I'm being stupid?

Bad credit rating, so got an aqua classic card, no problems, credit limit increases, all good. I am paying interest on the balance (1000 balance on 3600 limit) they have now offered a 6 month 0℅ money transfer deal. Can I take a 1000 at 0℅ and use it to pay the original grand balance thereby saving me the interest?

Any advice much appreciated.

Cheers B

benbay001

How does the interest rate at the end of the 6 months compare to the rate you pay now?
I assume you are not expecting to clear the balance in 6 months?

Brave321

I'd pay it off in the 6 months, interest rate on the money transfer is high after 6 months, 35% apr. I reckon if it was allowed it would save me around 200 quid in interest?

molerat

Is the transfer completely fee free ?

born_again

Brave321 wrote: »

they have now offered a 6 month 0℅ money transfer deal. Can I take a 1000 at 0℅ and use it to pay the original grand balance thereby saving me the interest?

Any advice much appreciated.

Cheers B

While it may be 0% interest. What is the fee for taking the £1000 cash?

enthusiasticsaver

Usually you would balance transfer from a different card so I would say no this will not help you. The only way you could do it is to do a cash advance and use that to pay off the card but cash advances are more expensive and may not be allowed on a 0% deal.

Have you tried ringing them to see if they will reduce the interest you pay?

Aqua is one of the most expensive cards out there interest wise hence them only being offered to those with bad credit. I strongly urge you to look at your budget and pay the card off by cutting back elsewhere or selling stuff or looking for an extra source of income. That is the best way of getting rid of debt not shuffling it around. Are you still spending on the card?

18cc

You can take the money transfer and transfer the cash into your bank account. Then use this cash to pay off your £1000 credit card balance.

They will charge you a one-off fee for the transfer.

At the end of six months you will start paying interest on the £1000 you transferred - compare this with what you currently pay on the £1000 on your card hopefully they will not be much different.

enthusiasticsaver

Are you sure it is a money transfer and not a balance transfer?

Brave321

Money transfer 3%fee, 0% 6 months. Take the 1000 transfer costs £30. Pay off 1000 balance. Now got 1000 at 0% 6 months. Pay off 1000 in 6 months. Save the interest on original grand balance? Will they let me do that though? Seems silly of them?

SnowTiger

Brave321 wrote: »

Money transfer 3%fee, 0% 6 months. Take the 1000 transfer costs £30. Pay off 1000 balance. Now got 1000 at 0% 6 months. Pay off 1000 in 6 months. Save the interest on original grand balance? Will they let me do that though? Seems silly of them?

After the money is in your bank account Aqua won't know where it came from.

Real saving probably isn't as much as you think. You mentioned saving £200 previously.

According to What's The Cost? you'll save about £30 a month in interest payments. A total of £180 over six months. Take away the £30 (3%) transfer fee and that leaves a savings of £150.

My Aqua cash rate is about 7.5% higher than my purchase rate. I'd guess yours is similar.

You'll have to factor how long it will take you to pay off the £1,000 debt you currently have in to your calculations.

My guess is you'll save about £150 over the next six month, then pay higher interest afterwards.

18cc

Yes you can do exactly that - transfer the £1000 your bank account and use as you wish in this case to pay off your card

You will save 6-months of interest for the cost of the one-off transfer fee

make sure you have a plan to repay this however because it seems you might be paying a higher interest after the 6-months on the money transfer amounts