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How do balance transfer cards work in practice?

bringingit
Posts: 75 Forumite


in Credit cards
Hi, I’ve never used a balance transfer card before. I understand the principle, but how does it work in practice? Specifically, what happens to the first card - is it closed or is it still usable?
As an example, let’s say I have a Barclaycard with a £9,000 balance and £10,000 credit limit. I open a Halifax balance transfer card, with a £12,000 credit limit that charges 3% on transfers.
As an example, let’s say I have a Barclaycard with a £9,000 balance and £10,000 credit limit. I open a Halifax balance transfer card, with a £12,000 credit limit that charges 3% on transfers.
I transfer my full balance, so I owe £9,270 to Halifax and need to make at least min payments. Does my Barclaycard stay open, with £10,000 available, or does to have to be closed?
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Comments
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Should stay open as far as I am aware. Other will confirm hopefully.
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It’s always stayed open whenever I’ve done a BT before, just it gets zeroed when the transfer is done.Retired at age 56 after having "light bulb moment" due to reading MSE and its forums. Have been converted to the "budget to zero" concept and use YNAB for all monthly budgeting and long term goals.0
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A balance transfer is simply paying your credit card balance off in exactly the same way as you would yourself. It is not like current account switching where the account gets closed.
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As above, it stays open0
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As far as the receiving account is concerned, a balance transfer is just a bank transfer payment.0
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Thanks everyone, that’s really good to know.0
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bringingit said:Thanks everyone, that’s really good to know.0
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As per all the previous replies, the original card stays open and available for use.And there's the bit you need to be a bit disciplined about. There's nothing to stop you going out and start merrily spending again on the Barclaycard once you've cleared it. But of course, if you're not careful, you're very quickly looking at double the debt you started with.1
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