money transfer to pay same credit card

Nicola_brufird

Hello 
I just want to make sure that i understand this
I have been offered a money transfer at 0% for 12 months @3.5%.
If i transfer the money(say 1000.00 @3.5% charge)  into my current account, i can then sent it back to the same credit card to pay off orginal balance(again say1000.00@24.9%) and i will still owe 1000.00 but at 0% and not at 24.9%

Brie

Yes - once you have transfered the balance to your bank account you can use it for anything.  

But if you are doing a MT from a card to your account and then paying the money back you are out of pocket for the transfer fee - so why do it??  Unless you also have a purchase balance on there you are trying to clear???

surreysaver

Brie said:

Yes - once you have transfered the balance to your bank account you can use it for anything.  

But if you are doing a MT from a card to your account and then paying the money back you are out of pocket for the transfer fee - so why do it??  Unless you also have a purchase balance on there you are trying to clear???

The fee is only 3.5%.  That is cheaper than paying interest at 24.9%.

OP - make sure you pay enough to the credit card to cover the whole balance plus interest, otherwise you'll still end up paying interest on the balance.
You could transfer more than the £1k you owe and put the rest in a savings account (as long as it pays more than 3.5% interest after tax).
Don't forget to change your direct debit to only take the minimum payment.
Which credit card is it? It sounds like a Barclaycard - if so, you can mix and match purchases and balance transfers if it is.