No fee MT then straight to 0% BT

daivid

As per title, I can money transfer with no fee albeit 6.8% interest per annum. I am provisionally approved for a 19 month 0% no fee BT card so my plan is to get the BT card then MT circa £8k which I will BT immediately and put cash into savings - most into fixed term but holding back enough in instant access to cover the minimum payments. This should make a tidy profit but as it seems too good to be true I'm racking my brain for anything I have overlooked. I realise I may have to pay a few days interest if the BT is slow but is there anything more serious I've missed?

MorningcoffeeIV

It's not too good to be true. It's just standard stuff.

As long as you understand how payments cc work and not to mix transaction types, it's fine.

daivid

MorningcoffeeIV said:

It's not too good to be true. It's just standard stuff.

As long as you understand how payments cc work and not to mix transaction types, it's fine.

Yes fine on that side; the card ending up with the balance would see no further use, and would then be repaid fully (or re-BTed) before the end of the promotional period. To make full use of the BT limit two MT offers would be used - one card currently has 0 balance, the other a spending card I repay in full each month (for simplicity I plan to BT the entire balance then use the money set aside for the spending as part of the savings).

Jami74

daivid said:

This should make a tidy profit but as it seems too good to be true I'm racking my brain for anything I have overlooked. I realise I may have to pay a few days interest if the BT is slow but is there anything more serious I've missed?

Yep. This is what I have done. 

WYSPECIAL

It does sound too good to be true but it isn’t and it works. Just try to minimise the time that there is a balance on the 6.8% card (often referred to as a mule card) to maximise your profit.

daivid

WYSPECIAL said:

It does sound too good to be true but it isn’t and it works. Just try to minimise the time that there is a balance on the 6.8% card (often referred to as a mule card) to maximise your profit.

Yes, I work out a days interest will be £1.60. To minimise this my thought was to make the MT on a Monday morning after the BT arrives (accepted but who knows when the card will get to me). I thought a Monday as then I can give the BT maximum working days before potentially stalling over the weekend.

Alex9384

MorningcoffeeIV said:

It's not too good to be true. It's just standard stuff.

As long as you understand how payments cc work and not to mix transaction types, it's fine.

You can keep spending on Barclaycard once you've done a money transfer. The next payment will go toward the purchase balance first. I've done it. The only downside is that when they review your account manually (I think every 4 months), they will be thinking "you are struggling financially" because you're balance is not reducing at all.

I also did 2 separate money transfers with BC, 3 months apart, with 0% periods having ending dates also 3 months apart.

With other providers like Halifax, I'm not sure. I think I'm not going to risk it as I've just done a larger MT.

Growingold

WYSPECIAL said:

It does sound too good to be true but it isn’t and it works. Just try to minimise the time that there is a balance on the 6.8% card (often referred to as a mule card) to maximise your profit.

So if you balance transfer the Money transfer you made at 6.8% interest incurring a couple of days interest, when do you pay the interest off when the statement comes through on the payment date or do you work out what it would be and pay it off immediately after balance transferring.   If you left it until the statement payment date would you not be charged interest on the interest?  

grumbler

Growingold said:

WYSPECIAL said:

It does sound too good to be true but it isn’t and it works. Just try to minimise the time that there is a balance on the 6.8% card (often referred to as a mule card) to maximise your profit.

So if you balance transfer the Money transfer you made at 6.8% interest incurring a couple of days interest, when do you pay the interest off when the statement comes through on the payment date or do you work out what it would be and pay it off immediately after balance transferring.   If you left it until the statement payment date would you not be charged interest on the interest?  

Interest on interest will be minuscule, but your BT can be slightly bigger than MT to avoid this. A small credit balance you can keep or spend.

MorningcoffeeIV

Alex9384 said:

MorningcoffeeIV said:

It's not too good to be true. It's just standard stuff.

As long as you understand how payments cc work and not to mix transaction types, it's fine.

You can keep spending on Barclaycard once you've done a money transfer. The next payment will go toward the purchase balance first. I've done it. .

Remember that's the exception, not the rule.

Hence the validity of my advice.

MasterplanC

I am planning to go ahead with the same plan at the beginning of the next week - using Clarity for the MT and then NatWest for the BT (just waiting for the card to arrive). Any last minute tips? Shall I wait for the physical NatWest card to arrive or is it enough to have it on the app?