HSBC Credit Card Deal

sonnymanou

Hi,

(Thanks for a great resource, Martin.)

I'm new to money-saving and I need some advice. (I want to do a little bit of card-tarting.)

This came through my letter box:

BT are offering (seem to be offering) a credit card with with 0% on balance transfers for 12 months. (3% handling charge.) I intend to transfer just over £2000 from a Capital One card.

They are also offering 0% per annum on transferring cash into a current account from the date that the credit card account is opened.

I want a cheap loan that I intend to pay off inside 12 months. Can you offer me a specific reason why I shouldn't use this card for the loan by taking the cash?

Thank you.

Best wishes,
Sonny

NickX

sonnymanou wrote: »

Can you offer me a specific reason why I shouldn't use this card for the loan by taking the cash?

No specific reason, it is a good deal. I think this card is underwritten by MBNA and all their cards have SBT (Super Balance Transfer) facility that allows funds to be transferred direct to a Bank Account.

However, you need to be aware that once the 12 month promotional rate expires, they will put you on the standard variable interest rate that could be anything up to 35%. So, you need to plan in advance how you will handle the debt after the promotion expires. You need to be sure that you can either pay off the debt or be in a position to get another 0% card to transfer the balance to. If you don't think you will be able to do this, then a loan maybe better in the long run as it will be a fixed interest rate and you won't be left paying more than you anticipated.

YorkshireBoy

sonnymanou wrote: »

Can you offer me a specific reason why I shouldn't use this card for the loan by taking the cash?

You can get 15 months and a 2.98% BT fee with Virgin.

Drat...that's 2 specific reasons.

ShelfStacker_3

NickX wrote: »

No specific reason, it is a good deal. I think this card is underwritten by MBNA and all their cards have SBT (Super Balance Transfer) facility that allows funds to be transferred direct to a Bank Account.

No, HSBC cards are underwritten by HSBC themselves. Not sure about a SBT facility, but their literature makes no mention of it.

I think the OP is slightly mistaken here...

YorkshireBoy

ShelfStacker wrote: »

I think the OP is slightly mistaken here...

Perhaps the OP was going to make a post about the HSBC card and then changed their mind? :rotfl:

NickX

Oh I see the title mentions HSBC now. No, they don't offer SBT facility.

Although I'm still under the impression that the BT card is an MBNA run card, hence the offer of Super Balance Transfer.

sonnymanou

I'm sorry for the mistake within the title. I've been considering two cards, one of which was the HSBC card and the other is the BT Visa Credit Card. It is the BT Visa one that I'm asking about.

Thank you, guys.

Sonny

Toastie

sonnymanou wrote: »

I'm sorry for the mistake within the title. I've been considering two cards, one of which was the HSBC card and the other is the BT Visa Credit Card. It is the BT Visa one that I'm asking about.

Thank you, guys.

Sonny

BT is from MBNA.

Might as well get a virgin card (MBNA still) and reap there 15month deal and you'll be sorted and better off by 3months.