Can I do a 0% balance transfer that exceeds the total on the receiving card?

Belenus

We always pay our credit card bills in full so we never pay interest.

In December, Martin's email detailed two 0% balance transfer deals with 15 and 18 month no interest periods from Santander and Barclaycard so we applied and were accepted for both.

We want to use the maximum credit limit on both cards to benefit from the long interest free periods. We will buy Premium Bonds or invest in other savings with the money that would normally pay the credit card bills. Also, with Barclaycard, we get £20 if we transfer £2,500 within 60 days.

We will pay off those cards in full before the end of the interest free periods.

Effectively we are getting interest fee loans for 15 and 18 months.

Transfers must be made within 60 days to benefit from the 0% offer.

Can we do balance transfers that well exceeds what is currently owing on our normal credit cards so that it covers further spending on those cards over the coming months?

For example, our normal monthly spending on our John Lewis card is about £2,000. If we do balance transfers of say £10,000, that will cover the next five months or so.

Will Santander, Barclaycard or John Lewis permit that or is it against their terms and conditions. I can't see it mentioned there.

Thanks

[Deleted User]

It's against the terms. You may get away with it, the funds may be returned, or the account may be closed.

For a 4k credit balance, expect the account to be closed.

Belenus

Thanks, I suspected that would be the case.

It is unfortunate as we have recently spent substantial sums on buying new carpets and furniture on the JL credit card and we have further expenditures planned. We intended to sell some of our Premium Bonds to cover the higher than usual bills in full to again avoid interest.

Unfortunately postal delays meant that we didn't receive either card in time to do a 0% balance transfer before the higher than usual credit card bill due to be paid on 8th January so we sold sufficient Premium Bonds to pay it.

Ah well, first world problems.

jonesMUFCforever

Risky strategy - Incurring a 3/4% fee for a potential 1% return (average)?
Unless of course you are that lucky person that gets a big win.