Balance transfer and money transfer

appleton8879

Hi everyone, I've just got a new Virgin Money credit card which offers 28 months at 0% interest for balance transfers. I have successfully completed a transfer from a Vanquis card and I'm happy with that. 

I also wanted to transfer a balance from a Cashplus card, but I find that I can't do that because Virgin Money and Cashplus have a connection as part of the same group and they don't do balance transfers within group. They do, however, offer money transfers (send money to my bank account) at 0% for 12 months). This sounds like a reasonable idea as I can do the money transfer and then use that to pay off the Cashplus card, giving me 12 months to clear that interest free. My concern is whether doing a money transfer will be harmful to my credit rating? I don't mind if it is a small 'event' and reduces my score for a few months, but I don't want to do something that is really harmful. 

Thanks

km1500

Yes you can do that.This might help

https://www.moneysavingexpert.com/credit-cards/money-transfers/

Or you can open a second balance transfer card at a different banking group and transfer te there.

CliveOfIndia

No, doing a money transfer will not harm your credit status to any meaningful extent (as long as you really do use the money to clear the Cashplus card!).  Your score will almost certainly drop as there will be a change in your credit circumstances.  But as the score is not used, nor even seen, by any lender, that's neither here nor there.

Is the money transfer offer on the same card as the balance transfer?  If so, you just need to be a little bit careful as to when each offer expires to make sure you don't start paying interest when it does expire.  But aside from that, there will be no issues with doing this.

Hopefully it goes without saying, but do make sure you clear the balance(s) before the 0% promotional rate expires!

appleton8879

Thank you both for the quick replies. Yes it's on the same card, and the balance transfer offer is 28 months, whilst the money transfer is only 12 months. But either way will help me to clear the balances quicker. 👍

molerat

Very carefully read and understand your summary box as you may get caught out

We allocate your payment to amounts that are charged at higher interest rates before those that are charged at lower interest rates.
•If we charge interest at the same rate on different parts of your balance, we will allocate your payment to the introductory rate first.
•If two or more introductory rates are the same we will pay off the introductory rate with the earliest start date first.
•If the introductory rates have the same start date then we will pay off that part which will be charged at the highest standard rate at the end of the introductory period.
•We will then apply your payment to balance transfers, cash advances, money transfers and purchases, in that order.

A quick look at one shows that all payments will go towards the BT leaving the whole of the MT untouched.

paul_c123

Its upside down to what might at first appear good management, but the way to manage a CC with 0% interest is to NOT make more than the min payment, in the promotional period. So, what you'd do is maintain min payments only, for the first 12 months, then once that money transfer offer expires, make a lump sum payment which will pay it off in full. Looking at the above, that lump sum will probably be the full amount, not the amount minus previous min payments.