Credit Card Balance Transfers

nero120 · 2 Oct 2006 at 22:47

Just a quickie, but can someone tell me what is the maximum balance transfer you can take when applying for a new credit card? Is it written in the small print or can you put in any figure which is then considered when the application is processed?

oneilldo · 2 Oct 2006 at 22:48

nero120 said:
Just a quickie, but can someone tell me what is the maximum balance transfer you can take when applying for a new credit card? Is it written in the small print or can you put in any figure which is then considered when the application is processed?

I think It depends on the applicant and the credit limit they give you based on your circumstances.

nero120 · 2 Oct 2006 at 22:51

oneilldo said:
I think It depends on the applicant and the credit limit they give you based on your circumstances.

Thats what I thought, but in the application it actually asks you for the amount of balance to transfer, yet doesnt stipulate a maximum. Whats the normal thing to do if wanting to get the maximum balance?

McDaniel · 2 Oct 2006 at 22:54

There is no specific maximum however they might not provide you with a credit limit high enough - depends on your credit rating

Ironic Namesake · 2 Oct 2006 at 22:55

Transfer up to the limit on your card

Watch out, some cards have a 2%-3% fee for balance transfers. I currently use M+S More card, 0% for 9 months and no fee!

Only other one I believe with no fee is Natwest...

nero120 · 2 Oct 2006 at 22:58

McDaniel said:
There is no specific maximum however they might not provide you with a credit limit high enough - depends on your credit rating

Tis what I thought. Do you know a good reasonable figure to start with? My credit rating is exemplary. Time I made it work for me!

starscream · 2 Oct 2006 at 22:59

It's normally 95% the credit limit of the card.

nero120 · 2 Oct 2006 at 22:59

OoOverclockaoO said:
Transfer up to the limit on your card

Watch out, some cards have a 2%-3% fee for balance transfers. I currently use M+S More card, 0% for 9 months and no fee!

Only other one I believe with no fee is Natwest...

Thanks for the tip. Gotta watch that balance transfer fee!

nero120 · 2 Oct 2006 at 23:00

starscream said:
It's normally 95% the credit limit of the card.

Maximum positive balance: £99,999

starscream · 2 Oct 2006 at 23:07

nero120 said:

Postive balance implies that your card is actually in credit. The only one I know that pays interest on positive balances is the Egg Money card.

McDaniel · 2 Oct 2006 at 23:08

The majority of Credit Cards max limits are around £15,000

There are the odd few who have 20k+ limits, but 15k is the stnadard max - depends on your financial status!

nero120 · 2 Oct 2006 at 23:21

McDaniel said:
The majority of Credit Cards max limits are around £15,000

There are the odd few who have 20k+ limits, but 15k is the stnadard max - depends on your financial status!

So what you're saying is I might as well write £20,000 into the application and see how much they give me based on my (fantastic!) credit rating?

McDaniel · 2 Oct 2006 at 23:23

Are you getting confused to what a balance transfer actually is?

Or am i misunderstanding.

Balance Transfer would be transfering a currently Credit Card balance from one Card to another?

i.e

My £14,000 balance from HSBC to a new Lloyds Credit Card

/edit

Its the Credit Limit that denotes how much you can spend - if you wrote 20k into the application (if there was a section for it) and they approved it - then yea - you could go out and spend 20k

starscream · 2 Oct 2006 at 23:25

nero120 said:
So what you're saying is I might as well write £20,000 into the application and see how much they give me based on my (fantastic!) credit rating?

Have you got £20k or credit card debt? You put your balance transfers on the application form IIRC and have to include the account numbers etc.

Edit : to expand on what McDaniel put. I'm not 100% sure you have the idea of balance transfers.

When you apply for a card, you cannot request a limit, that is decided for you by the company. At the same time you apply, you are often asked if you wish to pay off any other credit cards (This is the balance transfer) and you have to provide the account numbers on the application form.

If your credit limit is over 95% the ammount on your requested balance transfer it will be accepted. For example, if you have £5000 on credit card A and credit card B offer you a £6000 limit, you will be able to transfer the balance.

nero120 · 2 Oct 2006 at 23:38

Okay, I should elaborate a little. I plan to use a credit card with 0% interest on balance transfers (for a limited period) and little or no charges for BT, to put as much money I can get out of the card into a high interest savings account, thereby accuring interest on the balance and paying off the minimum each month to avoid paying interest, then finally paying off the total balance before the interest free period is up! Also known as Stoozing.

My question was related to doing a balance transfer to a card that has no debt on it and allows a no-charge withdrawal on positive balances to a savings account.

So, with respect of this, how much of a balance transfer should I ask for on the 0% interest on balance transfers card?

McDaniel · 2 Oct 2006 at 23:40

nero120 said:
Okay, I should elaborate a little. I plan to use the 0% interest on balance transfer period to put as much money I can get out of the card into a high interest savings account, thereby accuring interest on the balance and paying off the minimum each month to avoid paying interest, then finally paying off the total balance before the interest free period is up! Also known as Stoozing.

My question was related to doing a balance transfer to a card that has no debt on it and allows a no-charge withdrawal on positive balances to a savings account.

So, with respect of this, how much of a balance transfer should I ask for?

Thats not a balance transfer - a balance transfer is something ONTO the new card from a current Card.

What you want to do is withdraw the maximum Credit available - stick it into a high interest account while having a 0% interest and paying just the minimum payment?

Yes?

McDaniel · 2 Oct 2006 at 23:43

If so - you can;t do it one giant step - the only way i can see you doing this is...

1. Get a credit card (Card A)
2. withdraw the total possible (there will be a 1-2.5% charge)
3. stick the withdrawn amount into a high interest account

4. you will now have a Credit Card (Card A) oweing x amounts; but with that amount in an interest account.

Now no CC currently have 0% on Cash - so to avoid these charges you would then need to...

5. Apply for ANOTHER Credit card (Card B) request a 0% balance transfer from Card A to Card B.

6. your balance will now be on Card B and as it classes as a transfer not cash 0% interest.

7. Close Card A.

Repeat 5-7 after the 0% Balance Transfer rates run out.

I dont see any other way of doing it

nero120 · 2 Oct 2006 at 23:44

McDaniel said:
Thats not a balance transfer - a balance transfer is something ONTO the new card from a current Card.

What you want to do is withdraw the maximum Credit available - stick it into a high interest account while having a 0% interest and paying just the minimum payment?

Yes?

Heh, no! The balance transfer is from the card with 0% on balance transfers to the card that allows free withdrawals on positive balances into savings accounts. I don't think there is a card that allows you to withdraw cash or funds straight into bank accounts for free?

McDaniel · 2 Oct 2006 at 23:45

you still need a balance to transfer though?

starscream · 2 Oct 2006 at 23:46

McDaniel said:
Thats not a balance transfer - a balance transfer is something ONTO the new card from a current Card.

What you want to do is withdraw the maximum Credit available - stick it into a high interest account while having a 0% interest and paying just the minimum payment?

Yes?

Most companies are now clamping down on what you are trying to do, but there is a cunning way around it. Egg let you do balance transfers to current accounts so what you can do is get a 0% credit card, balance transfer as much as possible to an egg card, then move that onto a current/savngs account.