Balance Transfer for Positive Balance to Withdraw to off loan?

Heyrill

Hi all,

I can do a balance transfer of £4000 to pay off my current credit card and potentially my loan for 0% 31 month if this way is okay.

I have a CC with a balance of £700 and a loan of £3400 left with an interest rate of 9.9% APR.

I was thinking of doing a BT of £4000 which would bring me to positive £3300 and I call up for them to transfer me the funds to my bank account and I can pay off all my loan and then I can start clearing my balance with a 0% interest rate which would help me in the long run. Would this work and would it be okay to do more BT than what you owe?

Heyrill

I forgot to add there was no Money transfer option which is why I thought of this way.

MorningcoffeeIV

It may work.

But they may also return the funds to the originating card and close your account for breaching the terms. It's not worth the risk.

grumbler

IMO, account closure is very unlikely in this case.

Withdrawing cash first and then doing the BT will definitely work, but will cost you.

born_again

Heyrill said:

Hi all,

I can do a balance transfer of £4000 to pay off my current credit card and potentially my loan for 0% 31 month if this way is okay.

I have a CC with a balance of £700 and a loan of £3400 left with an interest rate of 9.9% APR.

I was thinking of doing a BT of £4000 which would bring me to positive £3300 and I call up for them to transfer me the funds to my bank account and I can pay off all my loan and then I can start clearing my balance with a 0% interest rate which would help me in the long run. Would this work and would it be okay to do more BT than what you owe?

Dangerous ground there.
At best they bounce payment back. At worst they shut card down & you face a AML investigation & a possible suspension of all your bank accounts.

Really not worth the risk.

grumbler

born_again said:

a AML investigation & a possible suspension of all your bank accounts.

AML for breaking T&C?

Do you remember Egg CC? It could have either positive or negative balance despite the alleged AML regulations.

born_again

grumbler said:

born_again said:

a AML investigation & a possible suspension of all your bank accounts.

AML for breaking T&C?

Do you remember Egg CC? It could have either positive or negative balance despite the alleged AML regulations.

A lots changed sine then.... 

bluu2k

Hi,

I just made positive balance on my Halifax Clarity Credit Card, and then Money Transfer such amount to my Halifax current account. All went smoothly without any problem:

1. Applied for Natwest credit card, 19month balance transfer interest free fee free (day 1)
2. 'Balance transfer' from Halifax card (which I had zero balance at the time) to Natwest card (day 3)
3. Money transfer from Halifax card to Halifax current account (day 4)




Heyrill said:

Hi all,

I can do a balance transfer of £4000 to pay off my current credit card and potentially my loan for 0% 31 month if this way is okay.

I have a CC with a balance of £700 and a loan of £3400 left with an interest rate of 9.9% APR.

I was thinking of doing a BT of £4000 which would bring me to positive £3300 and I call up for them to transfer me the funds to my bank account and I can pay off all my loan and then I can start clearing my balance with a 0% interest rate which would help me in the long run. Would this work and would it be okay to do more BT than what you owe?

grumbler

bluu2k said:

 All went smoothly without any problem:

1. Applied for Natwest credit card, 19month balance transfer interest free fee free (day 1)
2. 'Balance transfer' from Halifax card (which I had zero balance at the time) to Natwest card (day 3)
3. Money transfer from Halifax card to Halifax current account (day 4)




Heyrill said:

Hi all,

I can do a balance transfer of £4000 to pay off my current credit card and potentially my loan for 0% 31 month if this way is okay.

I have a CC with a balance of £700 and a loan of £3400 left with an interest rate of 9.9% APR.

I was thinking of doing a BT of £4000 which would bring me to positive £3300 and I call up for them to transfer me the funds to my bank account and I can pay off all my loan and then I can start clearing my balance with a 0% interest rate which would help me in the long run. Would this work and would it be okay to do more BT than what you owe?

Why take risk or getting into trouble if you can do a money transfer first and then a balance transfer? Yes, this will cost you a few pence in interest.

bluu2k

grumbler said:

bluu2k said:

 All went smoothly without any problem:

1. Applied for Natwest credit card, 19month balance transfer interest free fee free (day 1)
2. 'Balance transfer' from Halifax card (which I had zero balance at the time) to Natwest card (day 3)
3. Money transfer from Halifax card to Halifax current account (day 4)




Heyrill said:

Hi all,

I can do a balance transfer of £4000 to pay off my current credit card and potentially my loan for 0% 31 month if this way is okay.

I have a CC with a balance of £700 and a loan of £3400 left with an interest rate of 9.9% APR.

I was thinking of doing a BT of £4000 which would bring me to positive £3300 and I call up for them to transfer me the funds to my bank account and I can pay off all my loan and then I can start clearing my balance with a 0% interest rate which would help me in the long run. Would this work and would it be okay to do more BT than what you owe?

Why take risk or getting into trouble if you can do a money transfer first and then a balance transfer? Yes, this will cost you a few pence in interest.

Because I did not see risks in doing so with Halifax clarity card.

In the past I sometimes overpaid from my Halifax current account to Halifax credit card to make positive balance, either to pay for a transaction bigger than my credit limit (for various reason I did not want to ask Halifax for credit limit increase), or to accommodate my cash withdrawals abroad. Never got any question or blocked from them.

So theoritically Halifax allows positive balance on that type of card, provided that the sources of money is clear. But for other types of cards/banks, I don't know if it works the same way.

grumbler

bluu2k said:

grumbler said:

bluu2k said:

 All went smoothly without any problem:

1. Applied for Natwest credit card, 19month balance transfer interest free fee free (day 1)
2. 'Balance transfer' from Halifax card (which I had zero balance at the time) to Natwest card (day 3)
3. Money transfer from Halifax card to Halifax current account (day 4)




Heyrill said:

Hi all,

I can do a balance transfer of £4000 to pay off my current credit card and potentially my loan for 0% 31 month if this way is okay.

I have a CC with a balance of £700 and a loan of £3400 left with an interest rate of 9.9% APR.

I was thinking of doing a BT of £4000 which would bring me to positive £3300 and I call up for them to transfer me the funds to my bank account and I can pay off all my loan and then I can start clearing my balance with a 0% interest rate which would help me in the long run. Would this work and would it be okay to do more BT than what you owe?

Why take risk or getting into trouble if you can do a money transfer first and then a balance transfer? Yes, this will cost you a few pence in interest.

Because I did not see risks in doing so with Halifax clarity card.

In the past I sometimes overpaid from my Halifax current account to Halifax credit card to make positive balance, either to pay for a transaction bigger than my credit limit (for various reason I did not want to ask Halifax for credit limit increase), or to accommodate my cash withdrawals abroad. Never got any question or blocked from them.

So theoritically Halifax allows positive balance on that type of card, provided that the sources of money is clear. But for other types of cards/banks, I don't know if it works the same way.

OK, feel free to remain deluded. There is nothing special with "that type of card" besides fee-free cash withdrawals and MTs.
https://www.halifax.co.uk/assets/pdf/creditcards/pdf/terms-and-conditions/clarity-terms-and-conditions.pdf

You must not pay us more than you owe when you make payments to your account, or transfer funds from another credit or store card if this creates a credit balance on your account. ... We may also return any credit balance to the account from which the money has been sent or pay the funds into a deposit account you hold with us. 

This^^ is the theory. Yes, in practice you can get away with breaking the T&C (like with many other CCs), but this doesn't mean that it's OK to do this. 

It's a good card because of free MTs,  and it's better to  use it  wisely istead of abusing and hoping for the best.