Can I borrow from card at 0% to pay off debt on same card?

paul_c123

MrFrugalFever said:

paul_c123 said:

Fingerbobs said:

Wouldn't a safer strategy be to wait until a statement is produced showing the purchase, then execute the MT and use the MT funds to clear the statement in full? Shouldn't be any interest payable on the purchase if the entire statement balance is paid? Or have I misunderstood something?

Yeah that's the best strategy, definitely wait for a statement to be produced, THEN do the MT using the remaining available credit. Purchases are interest-free (interest waived) "if the statement balance is paid in full, by the due date". You don't want the MT to be on that statement!!! 

But the MT is 0% so what’s your point here?

Ok example:

1/7/23 you spend £5000 on a car
2/7/23 you do a £5000 MT from the credit card into your current account
if you wait for the statement date (let's say 15/7/23) the balance is £10000, but you only have £5000 excess cash in your current account to pay towards it. Thus, you can't "pay the statement balance in full", thus you will pay interest on the £5000 car purchase.


Preferred:
1/7/23 spend £5000 on a car
15/7/23 statement date, showing £5000 balance, to be paid by 3/8/23
16/7/23 take out a MT for £5000. The credit card balance is now £10000, but the STATEMENT BALANCE is £5000. You have £5000 cash (from the MT), so you can pay the STATEMENT BALANCE in full. No interest earned.
15/8/23 statement date rolls around, the balance is now £5000 but its the MT, at 0%, so you pay the min balance until the promotional period ends then make a lump sum payment to maximise the benefit and minimise the interest paid.