Zero Percent Transfers Between Zero Percent Balance Transfer Cards

Scouse_Git

I'd like to know if this is possible/allowed.

Scenario:

• I need a new (to me) car.  I have two zero percent balance transfer cards, each with a limit of £6k.

• I want to buy a car for £10k

• Question: can I put £5k on each card, then transfer each card's balance to the other card, thus maintaining my zero percent interest rate on each card, as each card has received a balance transfer from the other?

Many thanks in anticipation (of a "Yes"). 

CliveOfIndia

In theory it's fine, in practice it wouldn't work.  You put £5k on each card.  You then transfer £5k from card A to card B.  This means card B now has £10k on it - more than your credit limit.  It would be nigh-on impossible to have the two transfers (A to B and B to A) happen at exactly the same time.

The other fly in the ointment is that most car dealerships won't accept anything other than a small deposit on credit card, due to the fees they get charged by the card issuer (a percentage of the transaction value).

grumpy_codger

I think this may work, but can be more expensive than a loan:

Withdraw £1K from A and £1K from B.
Transfer £1K balance from A to B and £1K balance from B to A.
Repeat 5 times.
Pay cash for the car.

This assumes that both cards have zero balances and also ignors cash advance fees and possible effect of cash advances on credit history.
Also, some cards offer money transfers to a current account that can be used instead of drawing cash. E.g. Halifax Clarity. Some offer 0% money transfers. E.g. my Barclaycards.

Scouse_Git

Thank you. Maybe get a back loan, then transfer that balance over to one or both cards?

grumpy_codger

You can't transfer a loan.
Halifax Clarity is a good CC to have as it doesn't charge a fee for money transfers. Transfer money to a current account for free, than transfer the balance to some 0% BT card.
In the past, when 'stoozing' was very popular (because there were no fees for balance transfers, see the sub-board above) it was known as a 'mule' card.

Brie

I've managed to buy cars using my credit card.  More a thing possible with a big dealership rather than a tiddly second hand place.  But it works best if you have a nice long 0% purchase offers so there's no initial fees.  

Not sure what grumpy_codger is talking about different types of money transfers - I've only ever seen one type where you transfer money to a bank account.  And normally when I've been offered a BT there's almost always been a MT as well, albeit with slightly worse conditions (.5% higher fee, shorter term)

Whatever you do when you have a 0% offer of any sort that you are using set up at least the minimum payment DD so as not to lose the offer.  And don't use that card for any other purchases or advances.  And of course have a plan to pay off the lot before the offer ends.

grumpy_codger

Brie said:

Not sure what grumpy_codger is talking about different types of money transfers - I've only ever seen one type where you transfer money to a bank account.  And normally when I've been offered a BT there's almost always been a MT as well, albeit with slightly worse conditions (.5% higher fee, shorter term)

The only difference is the fee. 'Mule' cards were those that didn't charge the fee. They did charge interest, but this didn't matter as the balance was transferred to a 0% BT card. This way you, in two steps, could get 0% cash to your bank account.

Scouse_Git

grumpy_codger said:

I think this may work, but can be more expensive than a loan:

Withdraw £1K from A and £1K from B.
Transfer £1K balance from A to B and £1K balance from B to A.
Repeat 5 times.
Pay cash for the car.

This assumes that both cards have zero balances and also ignors cash advance fees and possible effect of cash advances on credit history.
Also, some cards offer money transfers to a current account that can be used instead of drawing cash. E.g. Halifax Clarity. Some offer 0% money transfers. E.g. my Barclaycards.

Thank you, but I'm not sure you can pay more than around £2k in cash anymore, because of money laundering concerns.

grumpy_codger

You can deposit it to your bank account(s). And if they ask questions show them the ATM receipts.