Credit card balance transfers

[Scam]

I'm struggling to understand how a balance transfer between credit card works and where I may get stung for fees.

I have some purchases coming up that I'd like to spread the cost on, so I'm looking at buying them on my current credit card (I get airmiles), then transferring the balance to a 0% fee and 0% interest card like this Halifax one.

So, can I do this? Is my current credit card likely to charge an 'out' fee? I can only see options for transferring balances *in* to my current credit card, not out. Or do I do it from my new credit card?

Secondly, can I do it more than once? If I make one large purchase now, transfer my balance, then make another one in Dec, can I transfer again?

Thirdly, will I get my airmiles on my current credit card if I transfer the balance out?

 

[Haggisman]

So, can I do this? Is my current credit card likely to charge an 'out' fee? I can only see options for transferring balances *in* to my current credit card, not out. Or do I do it from my new credit card?

Never heard of any doing it - pretty sure they're not allowed to, since effectively all you're doing is paying it off, it just happens to be that you're paying it with another CC

Secondly, can I do it more than once? If I make one large purchase now, transfer my balance, then make another one in Dec, can I transfer again?

Theoretically yes, however the 0% offers tend to be within a certain timescale of getting the card (usually 30-60 days)

There's nothing stopping you doing another transfer, but it will probably be at the normal card rates (e.g. 18-25% depending on the card)

Some will give offers periodically (I get a 0% offer every few months with my Barclaycard), but it's unlikely you'll get one just 2 months after getting the card.

Thirdly, will I get my airmiles on my current credit card if I transfer the balance out?

Yup - would be no different to if you paid on your card then paid it off straight away with cash.

 

[Scam]

Yup - would be no different to if you paid on your card then paid it off straight away with cash.

So that would make it worthwhile over the more simple option of getting a 0% credit card, which I've done before. Yay for airmiles.

Apparently the 0% fee goes for 90 days so I'd time it for that.

So, I would physically "do" the balance transfer from the new 0% card? I think that's where I'm getting confused, I thought I would be transferring out of the current card

 

[VincentHanna]

Yes, when you apply for the 0% card, you put the figure in you want to 'transfer' and give them all the details of your existing credit card.

Your existing credit card receives a payment clearing the balance and your new 0% card shows the payment out.

 

[pinkpound]

I did it few months back with Barclaycard offered me any transfer 0% till November 2018 0.5% transfer fee

Just remember never miss the minimum payment ..I worked out amount I transferred and divided it by 18 months to be safe and set min payment direct debit 10% over that

 

[stoofa]

I'm in the process of transferring my outstanding to a new credit card. I'll have to pay 2%, but then I'll get 25 months 0% on the balance transfer and any new purchases. Plan is to have them cleared before this introductory offer runs out.

 

[VincentHanna]

I did it few months back with Barclaycard offered me any transfer 0% till November 2018 0.5% transfer fee

Just remember never miss the minimum payment ..I worked out amount I transferred and divided it by 18 months to be safe and set min payment direct debit 10% over that

Same

Worked out the amount and the transfer fee and divided it by the interest free term.

I pay it manually every month and don't add 10% though

 

[.Lethal]

Nobody has mentioned the handling fees usually involved in 0% balance transfers, which is normally a few % of the amount transferred.

Read the small print.

Edit seems the last few posters have.

 

[VincentHanna]

OP said he had a 0% fee card.

Never heard of that, but fair enough.

Last time I did it, it was 3%

 

[Jono]

Last one I did was to a virgin money card, was a 3% fee, but 2.68% or something like was refunded after x days. So it worked out to be 0.3something%

 

[Glanza]

Halifax offer a card that gives you 40 months 0% on balance transfers. I took it out last week and they charged £48 to move £1400 over to it.

 

[Deleted member 66701]

I did it few months back with Barclaycard offered me any transfer 0% till November 2018 0.5% transfer fee

Just remember never miss the minimum payment ..I worked out amount I transferred and divided it by 18 months to be safe and set min payment direct debit 10% over that

That's what I do as well.

I don't think I've ever paid interest on any credit card purchases.

 

[Scam]

I don't think I've ever paid interest on any credit card purchases.

I just pay mine off in full every month, hence why I know nothing about these sorts of deals!

I guess I need to check that my existing credit card doesn't charge for transferring balance?

 

[VincentHanna]

I do as well with my main card.

But if I'm buying expensive things like a TV or monitor or something then interest free balance transfers are a good way of buying them

 

[Deleted member 651465]

Just make the minimum payment and balance transfer to a new card before the term is up. Eventually you'll pay it off and it'll be interest free (minus the small % transfer fee).

Obviously if you can pay it off in full before transferring that's better, but if you're in a pinch it's a good way to piggyback from one 0% deal to another.