would this work? (credit cards...interest free)

builder22 · 25 May 2009 at 15:29

first of all, what are the chances of getting a 6k credit limit ?

this Virgin credit card offers 0% on balance transfers (including transfers to a current account) for 16 months, so if you transferred the credit limit to your bank account, all you would have to pay is the transfer fee, providing you paid it off within 16 months ?

TheMagicPirate · 25 May 2009 at 15:35

I think you think you can transfer £6000 from the credit card to your cash account thus getting a 6k interest free 'loan'?

That isn't how it works, you transfer money from your other debts ONTO the credit card and they don't charge interest for x Months.

builder22 · 25 May 2009 at 15:39

that's what I always thought too, but look at this http://www.credit-card-comparison-online.co.uk/0-balance-transfer/default.asp
says "(Includes transferring cash into a current account)"
I'm just asking as I thought the same as you.....

TheMagicPirate · 25 May 2009 at 15:41

Wow, I stand corrected! Thats a pretty good deal.

I'll be applying for one of those myself

kip02 · 25 May 2009 at 15:42

Be very careful about doing that, if in doubt give them a call and ask they can only say no.
I know most would treat it as a cash advance and interest would be 20+%

EDIT: It seems too good to be true and looking at the website and the address wouldn't trust it with a barge pole.

builder22 · 25 May 2009 at 15:48

hmm, from the virgin website http://uk.virginmoney.com/virgin/credit-cards-v3/faq.jsp

it says...

For balance transfers, cheque transactions and money transfers we will charge interest at the rate of 0% in the first 16 months from the account opening date*. After that we will charge the standard interest rate which applies to transactions of this type on any of the balance still outstanding. This offer only applies to transactions made within the first 60 days from the account opening date.

and

On cash transactions your standard rate will be 27.9% APR (variable)

so is it a cash transaction or a money transfer ??

utherpendragon · 25 May 2009 at 15:57

a cash transaction will be for example using it at a cashpoint.

This was always a good way to make money (credit card blagging), moving between 0% cards and pocketing the interest, however nearly all of them will be interest free, but charge an 'admin fee' (typically about 3%) which wipes it out. Check the T&Cs but i'm sure there'll be something there, if not go for it!

div0 · 25 May 2009 at 16:04

The introductory rate for balance transfers, cheque transactions and money transfers applies to transactions made within 60 days from the account opening date.

Balance transfers made within 60 days from the account opening date 2.98% handling fee, min £3
Cheque transactions made within 60 days from the account opening date 2.98% handling fee, min £3
Money transfers made within 60 days from the account opening date 4.00% handling fee, min £3

builder22 · 25 May 2009 at 16:23

so for 5k, assuming it was paid off within the 16 months, you would pay 200 quid handling fee
still cheaper than a loan , and more flexible payment options....
depends on the credit limit they give you I suppose

MaX_PoWah · 25 May 2009 at 17:22

Yea you can do it with that card, its a super balance transfer, just be aware they can be a pain at the end of the 16 months, read some reviews about the card http://www.moneysupermarket.com/car...estBuyId=3375&cardPurposeId=19&reviews=True#0

Yes you could put it in a savings account and earn more than the balence transfer fee, its called stoozing http://forums.moneysavingexpert.com/forumdisplay.html?f=95