Money Transfer

Thinking of doing a money transfer from my Barclaycard to my bank account of 1k

Does this affect your credit score by any chance.
Wanting to buy my Son a chain for his 21st and thinking rather than take savings out of an account earning 5.2% interest might as well just do a money transfer at 3.3% fee with interest free until 2025 and keep savings increasing and just pay the transfer slowly off 

Is that a good idea 


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Comments

  • Altior
    Altior Posts: 595
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    Nothing wrong with that, it will be on your credit report but not especially negative.

    In your scenario however, I would go for a 0% on purchases card, then there is no fee. As long as the vendor accepts CC and doesn't charge a fee on the transaction. 
  • Johnny-Cage
    Johnny-Cage Posts: 107
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    edited 13 October 2023 at 10:26AM
    Altior said:
    Nothing wrong with that, it will be on your credit report but not especially negative.

    In your scenario however, I would go for a 0% on purchases card, then there is no fee. As long as the vendor accepts CC and doesn't charge a fee on the transaction. 
    Thx for the reply, I don’t really wanna apply for another credit card TBH well not at a cost of saving £33 plus just had 2 hard searches on my report, Switched from Virgin to BT broadband and took out another Barclays loan for a iPhone  from Apple. 

    Just wasn’t sure doing a money transfer would seriously damage my report further even tho it’s still excellent just lower 
  • Altior
    Altior Posts: 595
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    Sure, no worries. I have literally done dozens of MTs, never been an issue. In fact the more I do, the higher my credit limit is raised. What is a no no in my opinion is taking cash out using a CC via ATM, which you won't be doing. 
  • Altior said:
    Sure, no worries. I have literally done dozens of MTs, never been an issue. In fact the more I do, the higher my credit limit is raised. What is a no no in my opinion is taking cash out using a CC via ATM, which you won't be doing. 
    Maybe that’s where I got confused mate I knew ATM withdrawals were a massive No No 
  • MrFrugalFever
    MrFrugalFever Posts: 1,228
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    edited 13 October 2023 at 3:38PM
    Does BC not offer a 0% purchase option, normally the money transfer offer is accompanied by a purchase offer. Assuming the gift can be purchased with a CC this would be the cheapest option.

    You'd need to leave the £1,000 in your savings account for at least 12 months, using your salary to make minimum payments (assuming the variable rate doesn't decrease) to actually benefit from the difference in interest.
    Save £12k in 2023 challenge #32
    Saved Total = £12,000 / £12,000
    Save £5k in 2024 challenge #32
    Saved Total = £1,184.85 / £5,000

    Secured/Unsecured loans x 0
    Credit Cards x 6 (total limit £24,250)
    Creation FS Retail Account x 1
    0% Overdraft x 1 (£250)
    Mortgage x £140,250
    Debt = £1,014 (0%APR due 22nd July 2024)

    Charity fundraising goal for 2024 = £1,000 for animal rehoming / dog fostering etc
  • cymruchris
    cymruchris Posts: 4,882
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    Your mythical magical score will likely drop once it's reported you have a higher debt balance - but that's nothing to worry about as you know of course that only you see the score - and it's a gimmicky marketing ploy. It can give a general indication of where you are but it's often quite inaccurate.

    I have a credit limit across my cards of just over £40k - and whatever I spend has been paid in full each and every month for several years.

    I recently calculated that if I took a money transfer from Virgin - put the money in a savings account for the period of the zero percent promotion - paid the minimum monthly until the time came to pay off in full - I'd be about £250 up - even by taking into account the minimum payments.

    Once the reports were updated to include my new 'debt' - my mythical magical score tanked. Experian went from Excellent to Fair - Equifax dropped off a cliff - and Transunion went from Excellent to Good. In time, they'll recover.

    The money is sitting in my savings account earning me the pennies - but of course the credit card providers don't know that - as far as they know I might have just blown the lot gambling, or on a nice overseas holiday.

    If overall you're going to save money - then go for it. Don't worry about the score.
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • grumbler
    grumbler Posts: 58,629
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    Does BC not offer a 0% purchase option, normally the money transfer offer is accompanied by a purchase offer. 

    In my experience normally it isn't. In fact, I don't remember any of my CCs ever offering me 0% on purchases.
    Assuming the gift can be purchased with a CC this would be the cheapest option.
    How is buying a gift card better than buying the item directly? 
  • I don’t have any purchase offers just says you have no offers at the moment.
    Guess they will never give one either when I pay the card off in full every month for over 10 years 
  • DigSunPap
    DigSunPap Posts: 375
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    I don't think transferring money from your Barclaycard to your bank account won't directly impact your credit score as it's essentially just a cash withdrawal.
  • grumbler said:
    Does BC not offer a 0% purchase option, normally the money transfer offer is accompanied by a purchase offer. 

    In my experience normally it isn't. In fact, I don't remember any of my CCs ever offering me 0% on purchases.
    Assuming the gift can be purchased with a CC this would be the cheapest option.
    How is buying a gift card better than buying the item directly? 
    Barclaycard quite frequently offer deals across all three categories (Balance Transfer, Money Transfer and purchases) on my fathers account, to which he's had offers running in parallel with each other so they can and do offer them.

    I never mentioned anything about a 'gift card'. If the OP can purchase the gift on a credit card at 0% purchase then this may possibly be the cheapest option as no transfer fee's.
    Save £12k in 2023 challenge #32
    Saved Total = £12,000 / £12,000
    Save £5k in 2024 challenge #32
    Saved Total = £1,184.85 / £5,000

    Secured/Unsecured loans x 0
    Credit Cards x 6 (total limit £24,250)
    Creation FS Retail Account x 1
    0% Overdraft x 1 (£250)
    Mortgage x £140,250
    Debt = £1,014 (0%APR due 22nd July 2024)

    Charity fundraising goal for 2024 = £1,000 for animal rehoming / dog fostering etc
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