balance transfer to bank account?

mumdawn

I have received one of those routine letters from my credit card company with blank cheques for either a rate for 6 months or rate for life of balance.Just wondering if I clear all my debt from the card-could I then use one of the cheques and pay it into my bank account? The life of balance deal being offered is cheaper than my mortgage rate so I was thinking of using it for paying some of it off.
The terms and conditions do say that you can use the cheques for things credit cards are n't accepted for like paying household bills.
Thanks lots.

Moggles_2

mumdawn wrote: »

I have received one of those routine letters from my credit card company with blank cheques for either a rate for 6 months or rate for life of balance. If I clear all my debt from the card, could I then use one of the cheques and pay it into my bank account? The life of balance deal being offered is cheaper than my mortgage rate, so I was thinking of using it for paying some of it off.

Well, it depends which card is involved

A few rather special cards issue credit card cheques periodically, which can be paid directly into your current account. Your Virgin credit card (I read your other thread) is one such card. You're then charged at balance transfer or special offer rates. A BT fee applies though.

The offer you describe sounds like one I received from Barclaycard recently. If you paid one of those into your bank account, you'd be charged for a cash withdrawal - not recommended, not unless you have money to burn!

CannyJock

mumdawn wrote: »

I have received one of those routine letters from my credit card company with blank cheques for either a rate for 6 months or rate for life of balance.Just wondering if I clear all my debt from the card-could I then use one of the cheques and pay it into my bank account? The life of balance deal being offered is cheaper than my mortgage rate so I was thinking of using it for paying some of it off.
The terms and conditions do say that you can use the cheques for things credit cards are n't accepted for like paying household bills.
Thanks lots.

Best bet is to phone their customer services people to confirm. If phoning, ask them if you were using it to "clear an overdraft" would it count as a cash withdrawal because it's paid into your bank. Also confirm the maximum amount you can pay, and yes, definitely clear the debt from the card first and get a nil balance statement before doing this.

If you reply with the % for the LOB offer then people can give you a heads-up if it's a good rate or if there are better deals out there.

Using it to repay/offset your mortgage is like stoozing, have a look at the stoozing forum for some pointers on how to maximise it. Are you comfortable with the minimum payments on the card if you max the credit limit on a LOB?

NickX

Moggles wrote: »

The offer you describe sounds like one I received from Barclaycard recently. If you paid one of those into your bank account, you'd be charged for a cash withdrawal - not recommended, not unless you have money to burn!

I have received Credit Card cheques from Barclaycard before which were at Balance Transfer rates.

I was able to stooze the money by paying the cheques straight into my Bank Account, but I think you need to check all the small print an make sure that they will NOT be treated as a cash withdrawal.

Good Luck

mumdawn

thanks re all the info-it was natwest-i will check with them.

Symbeaux1

Alliance and Leicester offered me a balance transfer into my bank account @ 0 % till next February last week. But I wanted to clear it 1st and then transfer. Never been offered that before, wonder if it's something new ?

NickX

Symbeaux1 wrote: »

Alliance and Leicester offered me a balance transfer into my bank account @ 0 % till next February last week. But I wanted to clear it 1st and then transfer. Never been offered that before, wonder if it's something new ?

Ah, they want you to transfer before clearing the balance - this is so the existing balance gets trapped and accrues interest for the duration of the promotional period until the card is paid off in full.

Good move to clear it 1st and then transfer IMO