Balance transfer FROM a 0% credit card.

M1ck_d

I know it's very common for people to transfer balances if they're paying high amounts of interest and there's a chance to pay 0%, but do many people use it simply to extend their 0% interest months? 
My situation, I bought a car last year and put some of the bill on my M&S credit card. At the time it offered 20 months interest free and I can comfortably pay it off in that time (£225 for the next 16 months)

However, if I were to transfer to another provider that allowed me to extend the 0% months, my monthly bill would drop, and the money 'saved' could be put towards other things. For example, towards my mortgage overpayment in October. I've already overpaid the maximum allowed for this year. 

Is this a stupid, credit score ruining, nonsense idea? Any advice would be greatly appreciated. 
Mike

[Deleted User]

Yes, lots of people do that.

It will undoubtedly ruin your credit score, but won't change how lenders view you, as there is no chance in your indebtedness.

M1ck_d

Thanks for your reply zx81. I currently have a very good credit score so wouldn't want to damage it too much. I wonder how much damage would be done? 

[Deleted User]

It doesn't matter in the slightest.

Your credit score is just a gimmick that the CRAs provide for entertainment. No one but you will ever see or care about it.

M1ck_d

Fair enough! Thanks again. 

phillw

M1ck_d said:

However, if I were to transfer to another provider that allowed me to extend the 0% months, my monthly bill would drop, and the money 'saved' could be put towards other things. For example, towards my mortgage overpayment in October. 

The only issue is you need to plan to actually pay the money back at the end. Dumping money into your mortgage will be no good if you are left with a debt on a credit card at 20% & the 0% transfer offers dry up (unless you have an offset mortgage where you can get the money back).

crumpet_man

Why pay it back if you don't have to?  I've had 0% interest zero fee balance transfer cards for many years.  When one offer is running out I look for a new card to shift it to.  The money is earning interest for me and can be used to repay the credit cards if required.