Money transfer 0% than balance transfer 0%

deutsch · 16 December 2018 at 5:12PM

I applied for a Tesco Credit card 0% interest balance transfer. 0% fee transfer. It gave me quite a high limit. I was surprised really.

I've got a Halifax Credit card too. Existing customer. I've transferred my balance to Tesco as planned.

Once thing I noticed on my Halifax account, it offered a money transfer 0% fee, 4.9% interest which gave me an idea and leads to the questions below.

What's stopping me maxing out the money transfer and then balance transferring from Tesco to Halifax to clear the debt. I guess I would only incur a few pence in interest.

What's stopping me from doing this a few times?

To be honest, I don't need the money. I guess I could stooze this into a fixed rate savings account?

And for those who say there's risk, I can easily clear all credit card debt if I wanted to.

[Deleted User] · 16 December 2018 at 5:43PM

Nothing' stopping you from doing it. It's just that you haven't got round to doing it yet.

molerat · 16 December 2018 at 5:55PM

Did exactly that with my MBNA last year, got the timings right and £0.00 interest

Herbalus · 17 December 2018 at 12:20PM

Thanks for sharing. I just checked my Halifax offers on the clarity card and have the same offer.

Transferred £5k to the current account this morning and a 0% balance transfer from Santander is already winging its way to clear the Halifax card.

If it hits today I guess there will be no interest.

toshi · 20 December 2018 at 8:57AM

Herbalus wrote: »

Thanks for sharing. I just checked my Halifax offers on the clarity card and have the same offer.

Transferred £5k to the current account this morning and a 0% balance transfer from Santander is already winging its way to clear the Halifax card.

If it hits today I guess there will be no interest.

If you would remain outstanding (i.e. purchase) before this money transfer, you need to clear all outstanding to avoid interest payment as your payment (BT) will apply to higher interest payment first.

Just the below example, if you BT £5K only, you will be charged for £300 @ 4.9% until you make a payment.

15/12 Purchase £300 (19.9%, up to 56 days free interest)
20/12 Money transfer £5000 (4.9% 0 day free interest)

Happy stoozing

Herbalus · 20 December 2018 at 10:46PM

Thanks for the heads up.

I was imprecise in my earlier post, so that situation hasn’t arisen, though I can see where the idea has come from.

In reality I had £508 on the card, so MT’d £4300 and then BT’d £4800 to Santander to keep the numbers round. These transactions happened on the same day, so I now have £8 balance on the card.

If your logic follows that the £8 would be from MT as it’s the lowest rate and last to be taken, I can live with that. Around 3 pence for the month!

Though I had assumed the MT was the first to go as it was charging interest whereas the purchases were not. I can see how you might be right.

pinknsparkly · 22 December 2018 at 11:48AM

Does anyone know if you can do the money transfer from Halifax, followed by a balance transfer to Tesco more than once? I already have a Halifax CC and am intending to apply for a Tesco CC but believe (based on the limit my husband was offered by Tesco on an almost identical income to me) that my Tesco CC limit would be almost double my Halifax limit. Ideally I'd like to use the full extent of my Tesco CC limit, but this would require me to do two money transfer / balance transfer combinations. What is the worst that would happen? Halifax or Tesco would refuse to allow the second transfer? Or could I be flagged for fraud?

Thanks in advance!

Herbalus · 23 December 2018 at 10:05AM

I don't know specifically if you can, but I can't see why not.

You can certainly balance transfer from more than one card onto one card (consolidating all your debts), so no reason why you can't do the same card twice. If there is a problem it's likely to be whether Halifax will demise the offer after you've used it once.

pinknsparkly · 23 December 2018 at 12:49PM

Thanks Herbalus,

I'll give it a go after Christmas then and will feedback how I get on!!

Marina.as · 9 January 2019 at 10:14PM

I recommend to avoid MBNA. They do regularly introduce 0% interest offers but their customer service is dreadful. They do not value their customers and do not care about loyalty. They will fleece you without a second thought. I was a customer for 11 years and went over my credit limit for the first time ever in September 2018. Before that, the account was run faultlessly, always paid minimum payment by the due date, never defaulted, never went over the credit limit before.

But when I went over the credit limit by mistake in September, they sent me no reminders, so it took me 3 weeks to find out (yes I should have checked so my bad). I brought it back as soon as I found out but it was still over the limit for 3 weeks. At the time I had around £15,000 balance, all on 0% interest rate offers. They immediately cancelled all my offers so the whole balance was on their 24% standard interest and I was charged around 8270 in interest alone per month after that. Even though I phoned them and asked them what could be done to rectify the situation and get my arrangement back, they said there was nothing they could do. I couldn't believe it! No more offers. Maximum interest for my whole balance until it's paid off. I had no option but to close the account and have cut up the card. But I am struggling to know how I will ever pay it off now they are charging nearly £300 every month, in interest alone. This could put me in really serious financial difficulty, unless I find a capital sum fast. Before, my interest was hardly anything and the minimum payment was around £130 to keep the account shipshape.

Don't trust them because they don't care about their customers! I have never felt less valued.

Marina.as · 9 January 2019 at 10:16PM

You wouldn't be flagged for fraud I don't think. I think they start to take notice if large sums over £10,000 are being moved around. Smaller sums wouldn't be flagged.

Money transfer 0% than balance transfer 0%

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