Credit Card 0% deals and savings on benefits?

money08

Hi guys n gals.

I neither a saver nor a borrower as such. I have a bank account and just joined one of their saver accounts at £200pm for 12mths ONLY..then I got my weekly update from MSE about stoozing etc so I thought Id give it a go.

I used USWITCH which was great it turns out and it already told me I was 100% gauranteed acceptance on various CC cards (I really do suspect using a site like Uswitch is a great idea because the banks then appear to be less strict themselves and seem to accept USWITCH have done all the work!! It certainly is the best result Ive ever had and now have a card with £6.5k 0% offer, whereas usually they blank me for bank account etc in the past)

I thought the balance transfer would be great, but blast as I was thinking my bank then took the payment in full I have each month!! Bah humbug..mind you thats only around a £1k a month and I pay off in full. So then I thought maybe I could pay my rent in advance a few months on the 0% purchase off for 21mths, say to the tune of £5k on the card and then use my rent money to buy premium bonds for the period and then cash in when 0% ends, say a month before.

The savers are crap at the sort of offers they have. So what say you?

I am 65 on benefits, PIP ESA  Council Tax etc and have no savings. I certainly DO NOT want to risk DWP stopping my benefits which left me suicidal on changeover from incapacity benefits days...I was without any benefits for 6mths for no reason at all apart from the change in system. Thank God for CAB...its a long story but I got around £10k in back pay and compo from them. Long gone now of course as it only pauid the 6mths debt etc.

Does credit card debt, such as 0% count as savings? Does this idea even sound resonably sane?

Many thanks.

born_again

You can't have a credit on a credit card.. So these are not savings.
They are debt when you have a balance.


I really do suspect using a site like Uswitch is a great idea because the banks then appear to be less strict themselves and seem to accept USWITCH have done all the work!!

So far from the truth.
Banks still do their own checks. & guaranteed acceptance does not mean you will get approved by the banks.

money08

Commonsense of course, usually, Id imagine. I dont think the state has any at all. Its a gift after all lol - I just cant seem to see any other similar discussions on google, which is strange. So do you think this idea is just run of the mill and really is no issue?

Premium bonds are stasi state owned too so I am guessing they would inform on anything to do with claimants as a routine regular search system of bank accounts etc of claimants in any form.

money08

born_again said:

You can't have a credit on a credit card.. So these are not savings.
They are debt when you have a balance.


I really do suspect using a site like Uswitch is a great idea because the banks then appear to be less strict themselves and seem to accept USWITCH have done all the work!!

So far from the truth.
Banks still do their own checks. & guaranteed acceptance does not mean you will get approved by the banks.

You'd think. But I have been turned down for new bank accounts over the last few years. I think I also applied for Barclays as they used to be brilliant(not any more it seems, check out trustpilot negs=horrendous) only last year by Nationwide.

Brie

Paying your rent on a credit card is unlikely to work and I can't see how you'll gain if you did this and put money into PBs instead as there's no guarantee of gaining anything but you'll still have to pay a transfer fee.  If you do get a card (likely with a much smaller limit than suggested) you might see if the same bank will provide a higher interest savings account as well.  That way you are normally guaranteed some interest.

money08

Yeah Ive done that and already have the card....santander offer a £200pm saver for 12 mths at 5% buts thats no good really if I want to take advantage of the free loan offer on the 0% ccard.

I can pay my rent in advance according to my housing group. Mind you famous last words as none of them seem to know much about anything till you press fire. Im thinking now that wouldnt help much either as I would still only be able to buy bonds at £700pm instead of say a £5k hit in one go.

surreysaver

Santander have an Edge Saver paying 7% if you have an Edge Current Account, which you can put up to £4k in for a year. If you haven't got an Edge Current Account, just open one, but don't set up any direct debits as you'll be charged a fee for the account 

money08

Thanks. Ah! I did know this, but not the DD bit so thought it hardly worthwhile (be great for switchover bonus too if you close your old bank account) No switchover bonis if you have a standard account with them is there? I do want two bank accounts but not with the same lot really. Santander aint too bad to deal with. I have their card as well. I did a lot of thinking trying to sort my issue, to put the free money into bonds, out but it seems I cant.

money08

Cant "switch" anyway as you have to have 2 DDs so that means you would pay for the edge account £36 a year.....so that kills the switch bonus.

surreysaver

You don't need to switch. Just open the account so you've got access to the 7% saver. It doesn't matter if you have two accounts with them. They don't care.

born_again

Savings play no part in CC applications. It is only income that will be one of the factors.