Credit Card - Transferring Money to a current account...

[Phil117]

So I've had an email from Barclaycard offering 0% on "Transfer money to your current account". There's only a one off rate of 1.9%, and then I don't have to pay it back until October 2014.

I never use this card, and have a £10k credit limit. I've never done this before, so just want to double check I'm getting this right as it just seems like free money to me??


I can transfer £10k to my current account, and get charged £190 to do so.

I can then invest that £10k (safety of course), and then I don't have to pay it back until October 2014, and there's no other chargers?


Seems to good to be true. Or am I missing something obvious?

[carreauchompeur]

Most people presumably don't pay it back and then cop for the interest. If you gave the financial discipline, do it!

[Jockman]

So you have 6 months to save in an account paying at least 3.8% in interest on £10k, just to break even.

Do you know of one

[Sarnie]

You have to make minimum payments each month, not just take the money and give it all back in September.

It's also classed as a cash advance which reflects negatively on your credit file as it looks like you are living outside of your means and have had to resort to taking funds off a credit card.......

[wiggy001]

Your understanding is correct OP, although I'm intrigued about the "free money" you think you can get.

I used exactly this method to finance the wife's Audi A4 last year as it was by far the cheapest option for a £10k loan over 12 months.

[LeoSayer]

If you already borrow from that credit card then check out which debt is paid off first when you pay off your credit card ie. the normal credit card spending or this special transfer.

[R1 Indy]

I did Very similar for about £6K to fund my business startup.

I did this with my tesco CC, than signed up for a barclay CC with Interest free for 28 Months.

So Cost a couple hundred in Transfer fees, but hell of a lot cheaper than a loan!

[Pickled Piper]

I used to do this years ago before the credit card charges were introduced. I used to take the money and pay it into my flexible mortgage. At the end of the period I would just take it out of the mortgage and pay it back to the CC company. Saved thousands of pounds this way as mortgage rates were a lot higher.

It' s called "stoozing". You can google it for full details. Not really worthwhile nowadays due to the cc charges.

As others have said, check the Ts and Cs. Don't use the card for anything else. Make sure you make the minimum payments and don't forget to pay it back on time.

No longer free money but cheap money.

Pp

Edited by Pickled Piper on Saturday 12th April 22:00

[Sir Bagalot]

carreauchompeur said:

Most people presumably don't pay it back and then cop for the interest. If you gave the financial discipline, do it!

Back in the days of cards that didn't have BT fees 45% of people didn't have the money to repay when it came to the end of the deal.