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Questions about Balance Transfers

edited 30 November -1 at 1:00AM in Credit Cards
478 replies 103.7K views
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  • Hi there

    as a general rule, do the deals on balance transfers apply if you wish to transfer a partner's balance on to a new card? e.g my partner has a poor credit rating and i was wondering whether i could take out a card in my name and then transfer his balances

    Many thanks for any help you can offer
  • Moggles_2Moggles_2 Forumite
    6.1K posts
    mooseballs wrote: »
    As a general rule, do the deals on balance transfers apply if you wish to transfer a partner's balance on to a new card? e.g my partner has a poor credit rating and I was wondering whether I could take out a card in my name and then transfer his balances

    You can switch credit card balances from family, friends or Dave down the pub.
    Please bear in mind though, the person whose card the balance is shifted to, becomes soley liable for the debt. If you were to fall out, you couldn't ask the card company to charge him for any remaining balance.

    From the lender's perspective, it's not a problem. If you request the transfer by phone, Customer Services may ask you for the name on the card, but this is purely an additional verification check. At the end of the day, the card company is after your business. They're not really interested in knowing who ran up the debt, as long as you, their customer, pays up on time each month!
    People who don't know their rights, don't actually have those rights.
  • HSBC have suddenly changed their terms and conditions on my graduate account, and where previously promising to reduce the interest free portion of my overdraft by £500 each year, they have now said they are removing it all and charging 18.8%.

    To make it worse they have given me 21 days notice. What is the cheapest way for me to pay off my overdraft, so that I can close all my accounts with HSBC for screwing me over.:mad:

    I read about 0% super balance transfers (Virgin etc)?? Does this mean I basically pay money into my bank account from this new 0% card? If so do I look for card providers that say they allow cheque transfers?

    Or, would it be best for me to pay off my HSBC overdraft with my HSBC credit card and then do a balance transfer from my HSBC credit card to this new 0% card?
  • Moggles_2Moggles_2 Forumite
    6.1K posts
    I read about 0% super balance transfers (Virgin etc) Does this mean I basically pay money into my bank account from this new 0% card?

    Yes. A few rather special cards will allow you to transfer an overdraft to them, (in other words, transfer cash from the credit card to your current account), at balance transfer rates:

    a card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin), Egg card or the Post Office card.

    alternatively, you can use Egg Money (not to be confused with the Egg card) in conjunction with any 0% or low-rate balance transfer card.

    Mint periodically issues credit card cheques, which can be paid directly into your current account. Unless you already have them, this is the least satisfactory option, as cheques cannot be ordered and you never know when the next ones will turn up in the post.
    Note: other lenders (eg. Barclaycard, Halifax) issue credit card cheques from time to time. These can be used to settle bills, but if you paid one into your bank account, you'd be charged for a cash withdrawal - not recommended, not unless you have money to burn :eek:

    Which of the above is best depends, to some extent, on which cards you have at the mo. To maximise the 0% period, 15 months is currently available to new customers from Virgin. There's a 2.98% handling charge. Alternatively, you'd get about 14 months with Egg. A 3 % BT fee applies.
    People who don't know their rights, don't actually have those rights.
  • I have a loan that I was wondering if I could shift some or all of it onto a 0% card. Does anyone know if this is possible? From loan to card transfers?

    clbanks wrote: »
    Hi, my Son who is a Student in his final year has got himself into financial difficulty. He went over his overdraft facility, not by much to which they charged him £90 not just once. Apparently Lloyds almost forced him to take a loan out for about £1300. I'm sure I haven't got all the facts out of him yet. I hate the thought of him paying interest and would be happy to put it onto an interest free visa card, is this possible?
    I am going to look into the bank charges, he says he is going to go and see the CAB, not sure how much help they will be.
    Thanks,
    Catherine
  • Moggles_2Moggles_2 Forumite
    6.1K posts
    smilesimon wrote: »
    I have a loan that I was wondering if I could shift some or all of it onto a 0% card. Does anyone know if this is possible?

    Not directly. What you can do is ask the 0% BT card to transfer an overdraft to the card, in other words shift cash from the credit card to your bank account. A BT fee applies, but there are no other charges during the 0% period. You then have funds in your current account with which to pay off the loan ;)

    Caution: you cannot use any old 0% BT card. A handful will do this at BT rates (Please see #45 above)
    People who don't know their rights, don't actually have those rights.
  • suj123suj123 Forumite
    1 posts
    Hi

    I understand what a balance transfer is, but i am unsure about how the minimum payments work with these.... Do you pay say the nominal £5 every month and not incur any interest on the BT or do you pay 2.5% (whatever the rate may be) of the balance remaining every month.

    Can anyone shed any light on what you should be paying each month on a balance transfer? For example say £10,000 is transferred to another card.... what should monthly minimum payments be in order to avoid any interest payments?

    Thanks
  • NickXNickX Forumite
    3K posts
    suj123 wrote: »
    I understand what a balance transfer is, but i am unsure about how the minimum payments work with these.... Do you pay say the nominal £5 every month and not incur any interest on the BT or do you pay 2.5% (whatever the rate may be) of the balance remaining every month.

    Can anyone shed any light on what you should be paying each month on a balance transfer? For example say £10,000 is transferred to another card.... what should monthly minimum payments be in order to avoid any interest payments?

    The minimum payments vary according to which card you actually have.

    Cards adminstered by MBNA (including the Virgin range of cards) are somewhat unique in that the minimum payment during a promotional period is usually fixed at somewhere between £5 and £25. I think this is the nominal £5 that you have referred to. Abbey Zero also works in this way.

    However, virtually all other cards will request a minimum payment of between 2% and 3% of the outstanding balance. This will be detailed in your Terms and Conditions.

    It is important to make sure you make the minimum payments on time because if you pay late or fail to make the minimum you will not only incurr a penalty but you will also probably lose the 0% promotional rate.
  • rob81_2rob81_2 Forumite
    2 posts
    Can anybody answer this question?

    Is it technically a balance transfer if I pay off a car finance with a credit card?

    I was wondering if I could transfer the balance of my finance to a credit card to make the most of 0% offers.
    Any help would be gratefully received
  • NickXNickX Forumite
    3K posts
    Rob81 wrote: »
    Is it technically a balance transfer if I pay off a car finance with a credit card?

    Does the finance company take Credit Cards ? If they do (which I doubt actually) then I would think this would be treated as a Purchase rather than a Balance Transfer.

    If you have a card with SBT (Super Balance Transfer) capability then you can transfer the funds from this card direct to your Bank Account and pay off the car loan from there.

    Cards with this facility include Egg, Egg Money, Post Office Card and any card administered by MBNA (including the Virgin range of cards).

    In addition MINT periodically issue Credit Card Cheques that can be paid into a Bank Account at Balance Transfer rates, however this is the least satisfactory option because these cheques cannot usually be requested and you never know when they are likely to drop through your letterbox.
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