Never stoozed before...

dkwywbicgia

...but the Sainsbury credit card money transfer offer seems too good to turn down.

0% interest for 12 months with 0% transfer fee. Got £11k limit sitting there unused, so can make £480 on this in a savings account. 

Planning on transferring £11k into my current account and immediately forwarding it to my online savings account. 

Are there any pitfalls I should be aware of? I don't currently use the card for any spending, so that's not going to be an issue. What might the impact of an £11k money transfer make on my credit file? Is it worth keeping this just under the £10k threshold to prevent triggering any alarm bells anywhere?

Newbie_John

How will you "transfer" the £11k to savings account? 

dkwywbicgia

Newbie_John said:

How will you "transfer" the £11k to savings account? 

I'm planning on using Atom @ 4.51%. My current account is already linked to Atom as a connected account, so I would trigger the transfer from the Atom App. 

Newbie_John

Ok sorry, I've never done snoozing and always thought that you can only "transfer" debt from another card to this one - rather than transfer money out of credit card to a bank account.

dkwywbicgia

Newbie_John said:

Ok sorry, I've never done snoozing and always thought that you can only "transfer" debt from another card to this one - rather than transfer money out of credit card to a bank account.

Yeah, this is a lump-sum money transfer from credit card to current account, then onto savings account.

twadds123

dkwywbicgia said:

...but the Sainsbury credit card money transfer offer seems too good to turn down.

0% interest for 12 months with 0% transfer fee. Got £11k limit sitting there unused, so can make £480 on this in a savings account. 

Planning on transferring £11k into my current account and immediately forwarding it to my online savings account. 

Are there any pitfalls I should be aware of? I don't currently use the card for any spending, so that's not going to be an issue. What might the impact of an £11k money transfer make on my credit file? Is it worth keeping this just under the £10k threshold to prevent triggering any alarm bells anywhere?The

The question of "impact" on your credit file depends on your likely need to access real credit in the next while.

Got a mortgage application or something big coming up?  then maybe have a think if its worth it or not.

No need for any more credit in the immediate future?  then it will have a short term negative effect on your "score" but if you dont need it why worry?

As for pitfalls

Dont use the card for anything else.

Do make the minimum repayments on time every month, ideally direct debit the minimum.  failure to pay the minimum every month will invalidate the deal.

Make sure you don't spend the money!

Make sure the money is going to be available to pay this off at the end if you need to (depending on your circumstances it might be possible to balance transfer it elsewhere towards the end but don't rely on this)

Do consider higher rate accounts such as regular savers,  many still allow you to withdraw the money if you need it towards the end.

Discipline is key to stoozing.

dkwywbicgia

twadds123 said:

dkwywbicgia said:

...but the Sainsbury credit card money transfer offer seems too good to turn down.

0% interest for 12 months with 0% transfer fee. Got £11k limit sitting there unused, so can make £480 on this in a savings account. 

Planning on transferring £11k into my current account and immediately forwarding it to my online savings account. 

Are there any pitfalls I should be aware of? I don't currently use the card for any spending, so that's not going to be an issue. What might the impact of an £11k money transfer make on my credit file? Is it worth keeping this just under the £10k threshold to prevent triggering any alarm bells anywhere?The

The question of "impact" on your credit file depends on your likely need to access real credit in the next while.

Got a mortgage application or something big coming up?  then maybe have a think if its worth it or not.

No need for any more credit in the immediate future?  then it will have a short term negative effect on your "score" but if you dont need it why worry?

As for pitfalls

Dont use the card for anything else.

Do make the minimum repayments on time every month, ideally direct debit the minimum.  failure to pay the minimum every month will invalidate the deal.

Make sure you don't spend the money!

Make sure the money is going to be available to pay this off at the end if you need to (depending on your circumstances it might be possible to balance transfer it elsewhere towards the end but don't rely on this)

Do consider higher rate accounts such as regular savers,  many still allow you to withdraw the money if you need it towards the end.

Discipline is key to stoozing.

Thanks for the info. None of these are really a problem, although ideally I wouldn't want to take too much of a hit to my credit file. I have around £100k of available credit and this would take me to about 15% utilisation. 

Altior

On your numbers that's a negligible impact on the file.

Need to factor in the minimum payment in 'profit' calculations. Your balance could be significantly reduced by the end of the deal. 

dkwywbicgia

Altior said:

On your numbers that's a negligible impact on the file.

Need to factor in the minimum payment in 'profit' calculations. Your balance could be significantly reduced by the end of the deal. 

Thanks for the info. 

Good point on the minimum payments. Will have paid about £2.5k off the card by the end of the 12 month period. 

jimjames

dkwywbicgia said:

twadds123 said:

dkwywbicgia said:

...but the Sainsbury credit card money transfer offer seems too good to turn down.

0% interest for 12 months with 0% transfer fee. Got £11k limit sitting there unused, so can make £480 on this in a savings account. 

Planning on transferring £11k into my current account and immediately forwarding it to my online savings account. 

Are there any pitfalls I should be aware of? I don't currently use the card for any spending, so that's not going to be an issue. What might the impact of an £11k money transfer make on my credit file? Is it worth keeping this just under the £10k threshold to prevent triggering any alarm bells anywhere?The

The question of "impact" on your credit file depends on your likely need to access real credit in the next while.

Got a mortgage application or something big coming up?  then maybe have a think if its worth it or not.

No need for any more credit in the immediate future?  then it will have a short term negative effect on your "score" but if you dont need it why worry?

As for pitfalls

Dont use the card for anything else.

Do make the minimum repayments on time every month, ideally direct debit the minimum.  failure to pay the minimum every month will invalidate the deal.

Make sure you don't spend the money!

Make sure the money is going to be available to pay this off at the end if you need to (depending on your circumstances it might be possible to balance transfer it elsewhere towards the end but don't rely on this)

Do consider higher rate accounts such as regular savers,  many still allow you to withdraw the money if you need it towards the end.

Discipline is key to stoozing.

Thanks for the info. None of these are really a problem, although ideally I wouldn't want to take too much of a hit to my credit file. I have around £100k of available credit and this would take me to about 15% utilisation. 

One to remember is that if you've used the card previously it might be set to pay full balance by DD each month, I had to change mine to make sure it only pays the minimum.

dkwywbicgia

Thought it was worth reporting back on this. It's been trouble to set up. 

The only way to do a money transfer is via their telephone customer services which means 5 minutes of automated menu messages every time you call, repeating over and over again how much better it is to do everything online. 

Then when you get through you need to answer some properly vague questions based on your credit file including "what's the last 4 digits of your current account number" (no hint as to which current account they are referring to), and "what month did you open a credit account" (no hint as to which account). Of course these are impossible to get correct and they only give you one opportunity to answer, so when you fail you then have to wait two weeks for them to send out a letter with security number to proceed.

Now two weeks and 5 calls in, I finally got my letter, was able to get through security and then they claim the details I provided do not match those on my current account and I have had to send them a statement proving I am the account holder to proceed.

Would I have bothered if I had known it was going to be this much hassle? No.