Credit card cheques for a balance transfer?

MERFE

I've just had a letter from Halifax who I have a credit card with, they have sent a couple of cheques to use before 31st march (otherwise they charge normal cheque rates), one is 0% til august then normal balance tranfer rate 5.94% (its a low rate credit card but charges from the date of purchase rather than the 59 days thingy), the other is a low life of balance rate of 6.95% so a bit useless since its more than the normal balance transfer rate and that one will be shredded!

Anyway I was gonna transfer my MBNA balance before May as that is when the 0% runs out on that, so if I use the cheque this month to pay off the balance will that mean I have 0% till august but on my halifax card instead then just the normal interest? Bonus if that right, I'm dubious dont know why.

Balance transfer fee is 3% but since I was gonna transfer it in May anyway to avoid MBNA 15.9% interest thats ok.

I hate ringing people up but will do if its safer or will it be ok to use these cheques when my bill comes in?

newmum1

I had this come yesterday but i assumed that by using the cheques it is charged at a high interest rate, am i wrong on this??

immoral_angeluk

Nooooooooooooooooooo don't do it. the credit card cheques are classed as cash advances and so you pay a higher rate of interest on them!!

bargainbetty

I'd call the bank and double check. I find those cheques usually have a fee attached, but the interest on mine is whatever the standard rate is.... if they are offering 0% for that time, and the fees aren't going to be more than any other transfer, it seems silly not to use it.

Definitely check it out with the bank though. Don't want to pay extra.

MERFE

immoral_angeluk wrote: »

Nooooooooooooooooooo don't do it. the credit card cheques are classed as cash advances and so you pay a higher rate of interest on them!!

I know what you are saying and this is the reason I was dubious, it does clearly say if used before 31st March the special rates apply but the normal 21% if used after that date. 0% says until 31st August then a rate of 5.94% (which is the normal interest for balance transfer on this card) to be applied to any remaining balance (should only be about 500 left by then according to my spreadsheet).

I will do it over the phone then to be sure and double check the terms first