Can I do a money transfer to pay off credit card before I get charged interest?

tigerlily93

I have some money on a credit card that’s from a balance transfer I did a while back, and got it on a 0% interest for X months offer. I will start being charged interest soon at 4.9% but I can't pay it off just yet. However, on the same card I can do a money transfer, get 12 months 0% interest on that transfer with a 5% fee. 

Is it possible for me to do a money transfer from that card to my bank account, pay off the amount from the balance transfer with the money transfer amount, and then get another 12 months of 0% interest? 

I hope that makes sense... 😅 would it work or would I just be adding even more money to my credit card?

DullGreyGuy

You will need to check the T&Cs of where the payment will be credited to. The law requires it to be paid towards the balance with the highest interest rate but as both are currently 0% then its down to their T&Cs if they just credit it to the recent money transfer or the older BT.

Is the 4.9% the APR on the BT when the interest kicks in? If it is, why do you want to pay a 5% interest to avoid 4.9% interest? Would be different if the money transfer was for over 12 months.

tigerlily93

DullGreyGuy said:

You will need to check the T&Cs of where the payment will be credited to. The law requires it to be paid towards the balance with the highest interest rate but as both are currently 0% then its down to their T&Cs if they just credit it to the recent money transfer or the older BT.

Is the 4.9% the APR on the BT when the interest kicks in? If it is, why do you want to pay a 5% interest to avoid 4.9% interest? Would be different if the money transfer was for over 12 months.

Thanks I will check the T&Cs. The money transfer would actually be good for me anyway so I don’t max out my overdraft on my bank account, I’m thinking it might be a kill two birds with one stone situation!

noh

What you propose makes little sense.
A MT with a 5% fee would cost more than paying 4.9% apr on the outstanding amount for a year.

adindas

noh said:

What you propose makes little sense.
A MT with a 5% fee would cost more than paying 4.9% apr on the outstanding amount for a year.

I think his main intention is just to stay afloat, snowballing and not for stoozing as he can't pay it off just yet.