Credit card cash to pay off same card!?!

Hi everyone, interested to know if the following will work....
I have a card which has £1000 balance that is on a low rate which is due to expire. I would like to move that balance to a low rate but am unable to apply for a new card at this time. My current card has a Money Transfer offer which is only 4% fee and 0% interest for 12 months.
My question is: Can I take £1000 into my current account and then use that money to repay £1000 on my existing card at the higher rate?
Hoping for a net result of £1000 balance on the Money Transfer rate with just the 4% fee. Will this work?


  • [Deleted User]
    [Deleted User] Posts: 35,242
    First Anniversary Photogenic Name Dropper First Post
    edited 16 September 2020 at 8:41AM

    Make sure the cash transaction has statemented first before making the payment (depending on the card).
  • phillw
    phillw Posts: 5,589
    First Anniversary Name Dropper First Post
    edited 16 September 2020 at 8:44AM

    Make sure the cash transaction has statemented first (depending on the card).
    Why? You usually wait for a transaction to be statemented before paying, because you want the payment to pay off the new transaction. You don't want the cash transaction to be paid off, so what is the purpose of waiting? I've never heard of a card that would prioritize transactions that haven't appeared on a statement.
  • The only catch with this plan is the order in which the lender allocates and prioritises payments, as you don't want them to assign the payment to the Money Transfer and then still be left with the £1,000 balance on the expiring rate.

    Not sure how you would ensure correct assignation other than to thoroughly check T&Cs for any mention of order in which payments are made.

    I am fortunate enough to have never paid any additional fees, charges, or interest, but assume that, initially, any interest would be paid off first, then any fees or charges, before the balance of the deposit goes towards the balance of the debt.

    Whether to wait for the statement first or not? 🤷‍♂️

    I think clarifying the above is the most important thing to do first.
  • As stated you need to know which debt would be paid off first when you credit the £1000. 
  • pbartlett
    pbartlett Posts: 1,397
    First Post Name Dropper
    they **should** allocate payments to the highest interest rate first but as above - check first
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