| Archive for Downsizer For an ethical approach to consumption |
| Stacey |
Balance transfer questionI have an overdraft with HSBC (18.8%) which is hampering me leaving them. I've just been listening to Martin Lewis talking about the best credit card deals atm. Could I transfer my OD onto a long term 0% credit card or does balance transfer only relate to balances from other credit cards? |
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| RichardW |
Best asking them that.
Richard |
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| Stacey |
I fell out with them.
It's a general question about credit cards, not about HSBC therefore not unreasonable I feel. |
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| RichardW |
No I ment ask the credit card companies. Each will have different rules. How about take a card out with draw cash (yes you pay more) pay of overdraft. then transfer balence to second new card. You will pay cash transaction fee & balance transfer fee but then have the "loan" on interest free for offer period. Richard |
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| Stacey |
I usually just apply online as it's quicker. I don't want to apply for too many as it affects your credit rating and mine is plummeting as we speak 
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| RichardW |
So open two now while you can & then do the balance transfer later. they normaly give you a month to do them in.
Just make sure the 1-3% transfere fee is worth the free interest period & any charges. Richard |
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| Stacey |
I was going to go for the Tesco one as it's 13 months at 0% and a 2.5 transfer fee. I've got 3 or 4 credit cards already I could do a cash transfer on one of them if I needed to I guess
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| RichardW |
& then move it all to the cheeper deal & try to pay it all off before the deal runs out. Or try to hop again to a 0% deal but pay the fee. Still cheaper than staying with the same card on the standard rate. Some cards give you a low "life time of the balance" rate which can be good if you cant pay it off by the end of the free period. Try HERE for good deals & advice.
Life time rate HERE Richard |
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| Chez |
I think Richard's advice is good.
But ... make sure that you are not going to get stung afterwards if you don't manage to pay it off within the whatsit period. Also, if you don't use your other credit cards, write and ask them to close the accounts, I believe that that should help with the credit rating. |
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| Pilsbury |
Have a look if your card does credit card cheques, often you can write one to youeself and pop it in the bank and it avoides a lot of the charges, my last credit card allowed me to use the cheques as balance transfers and I got the interest free period as well. | ||
| RichardW |
My card cheques cost more than cash withdrawals (extra fee & higher interest rate from withdrawal, but then you will transfere it out so not pay the interest anyway) out of a machine or over the bank counter. So check first.
Richard |
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| Louisdog |
Credit card Cheques and cash withdrawals will incur a handling charge (say 2%) and also incur interest from the second you do it. Would be good to avoid the handling charge as you'll almost certainly have to pay a balance transfer fee as well.
There is a way to do a balance transfers into a bank account, I think they are nicknamed super balance transfers or mule cards or something and only some cards do it, if you go to Moneysaving expert and look up the credit card stoozing article I think that will tell you about these cards, if they still exist. I think Egg used to be one that did it. And yes go for the Tesco one for more clubcard points 
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| samsdad |
You can make a reasonable income from transferring balances around credit card accounts and keeping the money earning interest in a savings account in the meantime; I've been doing it for over 14 years. There's now a website dedicated to this activity which is called "stoozing". The site is www.stoozing.com and is often mentioned at MSE. | ||
| lettucewoman |
coo thats interesting! how much money do you make on average? |
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| RichardW |
I thought that died out with the transfer fees & low interest artes now on offer.
Richard |
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| Louisdog |
Yeah it's much harder now they impose transfer fees. | ||
| samsdad |
I used to make up to £10k a year (30 cards with a total of £220k on them) but yes, it's harder now with fees and lower interest rates. Nevertheless, this year I should make around £2000. |