Discussion
Just make sure you know what your getting it for. If transfer only then the longest poss duration is best. If you want it for transfer and purchases make sure the 2 durations are the same.
You'll be paying the monies off on a FIFO basis, therefore you'll be reducing your 0% balance every payment whilst still accruing interest on any non-int free purchases, usually at quite a hefty rate.
Hope that makes sense anyway.
BTW - Mint have 0% on both at the moment for 9 months.
You'll be paying the monies off on a FIFO basis, therefore you'll be reducing your 0% balance every payment whilst still accruing interest on any non-int free purchases, usually at quite a hefty rate.
Hope that makes sense anyway.
BTW - Mint have 0% on both at the moment for 9 months.
I have built up some pretty big credit card debts at the moment, I do this periodically. Currently have about £30,000 of debt, but all at 0% and the money is sitting in the savings part of my offset mortgage, even with the convenience cheque fees/ balance transfer fees etc used to transfer the funds, it's still costing me less than the interest saving on the mortgage. The last time I did this I managed to get up to about £55,000 before they stopped issuing me with more cards. At the end of the 0% period, I pay it all off at once and on my next zero balance statement, my credit limit soars.
>> Edited by Balmoral Green on Wednesday 1st March 18:26
>> Edited by Balmoral Green on Wednesday 1st March 18:26
Balmoral Green said:
I have built up some pretty big credit card debts at the moment, I do this periodically. Currently have about £30,000 of debt, but all at 0% and the money is sitting in the savings part of my offset mortgage, even with the convenience cheque fees/ balance transfer fees etc used to transfer the funds, it's still costing me less than the interest saving on the mortgage. The last time I did this I managed to get up to about £55,000 before they stopped issuing me with more cards. At the end of the 0% period, I pay it all off at once and on my next zero balance statement, my credit limit soars.
I'm really not convinced this is good practice
chilli said:
I think Egg is just 9 months..... Sainsbury's is a good deal.
Just got my Egg card today, balance transfer about to happen, no fee an 9 months 0%...
(About to transfer off the last card that had 0%, although it did have a fee... still 2% p.a. is a lot better than mortgage rates with an offset mortgage
)ApexClipper said:My MBNA account was clear, I wrote myself a convenience cheque for £15K and paid it into my current account, the fee for the cheque was £50. Then I paid the money from my bank account into my offset mortgage account and transfered the £15K balance from the MBNA card to Capital One at 0% for 9 months and that didnt attract any fee at all. That was just one transaction.
I'm really not convinced this is good practice
Tell me where else you can borrow £15K over 9 months for just £50? as simple as that with no hassle or credit checks or any paperwork.
I have done this on three cards and am up to £30K now, all for free, more or less, so thats no mortgage interest on £30K. I managed to keep it up for a few years years last time on several cards, swopping funds around, and as mentioned earlier, ended up with over £50K of free money. I cant remember the exact figures, but it cost me about £250 in fees, and saved me about £2K on my mortgage over a couple of years.
>> Edited by Balmoral Green on Wednesday 1st March 19:10
Balmoral Green said:
I'm really not convinced this is good practice
Tell me where else you can borrow £15K over 9 months for just £50? as simple as that with no hassle or credit checks or any paperwork.
I have done this on three cards and am up to £30K now, all for free, more or less, so thats no mortgage interest on £30K. I managed to keep it up for a few years years last time on several cards, swopping funds around, and as mentioned earlier, ended up with over £50K of free money. I cant remember the exact figures, but it cost me about £250 in fees, and saved me about £2K on my mortgage over a couple of years.
You clearly have the discipline to ensure that the money you factor and shift about gets spent on making you money (or saving you money in your case). For you - this is excellent practice and I take my hat off to you! If the institutions are foolish enough to just hand you cash for a little work why not!
ApexClipper has a point though. Someone with less discipline could end up in deep trouble. Awful tempting to start using some of that lovely free money to do something else...and then the debt mounts up *without* the ready means of paying it off.
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