Keep Balance Transferring between two Cards

Superhoopza

It's only a theory but could this work if the providers kept allowing the option for balance transfers:

Say you have a BT option on one card with an unused credit limit of for this example £4,000. (Card 1)
You are carrying a substantial balance on another card (Card 2)

Card 1 allows you to complete a BT for a fee, so you BT £3,000 from Card 2.
Card 2 then allows you to complete a BT as you have some available credit left, so you do a BT back to Card 1. 
At this point, you have the same debt + two sets of fees, the same debt profile (plus fees) on the two cards, but £3k is now on 0%

Could in theory, if both providers allow you to, to keep doing this process, as each time a BT is made from Card 2, then allocate the payment to interest earning balance, not the amount you have BTed over. So you keep doing this until you move all your debt to 0% (plus a few sets of fees?). I'd need to do the maths but in principle is this possible?

Happy to try and explain better if there is confusion behind the process or question.

Nasqueron

Yes you can bounce a balance for as long as you have offers / until you pay it off. Sometimes it works out better for affordability to move a balance again and extend the period if it reduces monthly payments and either keeps you in the black or allows for more savings

Superhoopza

Nasqueron said:

Yes you can bounce a balance for as long as you have offers / until you pay it off. Sometimes it works out better for affordability to move a balance again and extend the period if it reduces monthly payments and either keeps you in the black or allows for more savings

Even between just two providers (if they keep giving offers)?

CliveOfIndia

Superhoopza said:

Nasqueron said:

Yes you can bounce a balance for as long as you have offers / until you pay it off. Sometimes it works out better for affordability to move a balance again and extend the period if it reduces monthly payments and either keeps you in the black or allows for more savings

Even between just two providers (if they keep giving offers)?

Yes.  The big caveat being "if they keep giving offers".

But do factor in the fees for each transfer.  If doing the transfer means you can stick money into a savings account and earn more in interest that what you've paid in fees, then it's a sound idea.  But if the fees outweigh any interest you could earn then you're better off just clearing the balance.

Superhoopza

CliveOfIndia said:

Superhoopza said:

Nasqueron said:

Yes you can bounce a balance for as long as you have offers / until you pay it off. Sometimes it works out better for affordability to move a balance again and extend the period if it reduces monthly payments and either keeps you in the black or allows for more savings

Even between just two providers (if they keep giving offers)?

Yes.  The big caveat being "if they keep giving offers".

But do factor in the fees for each transfer.  If doing the transfer means you can stick money into a savings account and earn more in interest that what you've paid in fees, then it's a sound idea.  But if the fees outweigh any interest you could earn then you're better off just clearing the balance.

For me it's whether the fees cover the savings in interest I'd be paying without doing the switch.

Nasqueron

Superhoopza said:

Nasqueron said:

Yes you can bounce a balance for as long as you have offers / until you pay it off. Sometimes it works out better for affordability to move a balance again and extend the period if it reduces monthly payments and either keeps you in the black or allows for more savings

Even between just two providers (if they keep giving offers)?

Provided the card issuer isn't part of a group that blocks card transfers, yes it should do - Halifax balance transfer payment to Lloyds works but YMMV. End of the day, you pay a fee, they move the money, they don't track if it was the same card you paid off a couple of years ago  

Superhoopza

Nasqueron said:

Superhoopza said:

Nasqueron said:

Yes you can bounce a balance for as long as you have offers / until you pay it off. Sometimes it works out better for affordability to move a balance again and extend the period if it reduces monthly payments and either keeps you in the black or allows for more savings

Even between just two providers (if they keep giving offers)?

Provided the card issuer isn't part of a group that blocks card transfers, yes it should do - Halifax balance transfer payment to Lloyds works but YMMV. End of the day, you pay a fee, they move the money, they don't track if it was the same card you paid off a couple of years ago  

Or even a few weeks/months ago? 

Thanks all.

Nasqueron

Superhoopza said:

Nasqueron said:

Superhoopza said:

Nasqueron said:

Yes you can bounce a balance for as long as you have offers / until you pay it off. Sometimes it works out better for affordability to move a balance again and extend the period if it reduces monthly payments and either keeps you in the black or allows for more savings

Even between just two providers (if they keep giving offers)?

Provided the card issuer isn't part of a group that blocks card transfers, yes it should do - Halifax balance transfer payment to Lloyds works but YMMV. End of the day, you pay a fee, they move the money, they don't track if it was the same card you paid off a couple of years ago  

Or even a few weeks/months ago? 

Thanks all.

No-one could really say for sure but I don't see why they would really care if they got their fee and you're just using their offers. Bumping every few weeks or months might be expensive though!

I have done BT from card A to card B to card C then B again in a chain to clear off a couple of debts and keep them in one place but not that quickly! I prefer the cash in my bank earning interest not paying off the bank. When it's doing 7% in NatWest regular saver for example, the monthly interest stacks up

Superhoopza

Nasqueron said:

Superhoopza said:

Nasqueron said:

Superhoopza said:

Nasqueron said:

Yes you can bounce a balance for as long as you have offers / until you pay it off. Sometimes it works out better for affordability to move a balance again and extend the period if it reduces monthly payments and either keeps you in the black or allows for more savings

Even between just two providers (if they keep giving offers)?

Provided the card issuer isn't part of a group that blocks card transfers, yes it should do - Halifax balance transfer payment to Lloyds works but YMMV. End of the day, you pay a fee, they move the money, they don't track if it was the same card you paid off a couple of years ago  

Or even a few weeks/months ago? 

Thanks all.

No-one could really say for sure but I don't see why they would really care if they got their fee and you're just using their offers. Bumping every few weeks or months might be expensive though!

I have done BT from card A to card B to card C then B again in a chain to clear off a couple of debts and keep them in one place but not that quickly! I prefer the cash in my bank earning interest not paying off the bank. When it's doing 7% in NatWest regular saver for example, the monthly interest stacks up

I'd only need to do it a few times to shift most or all of my credit card debt to 0%. Then I wouldn't need to do it again for a while.

Saying that, if I only get a 12 month 0% offer, I will need to do it more regularly than I thought so possibly it wouldn't work out cheaper if the fees were high.

fergie_

If they are charging an up front transfer fee, might be worth transferring to a fee free interest charging card and then straight back from that card. A few days interest is likely to be a lot less than a 3-5% charge.

Superhoopza

fergie_ said:

If they are charging an up front transfer fee, might be worth transferring to a fee free interest charging card and then straight back from that card. A few days interest is likely to be a lot less than a 3-5% charge.

Good idea, only issue is if I don't get a 0% deal back, I've moved it over to an interest charging card potentially for the whole time until I pay it off.