Post office credit card cash transfer loophole
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Post office credit card cash transfer loophole

55
Found 15th Mar 2012
Probably limited takers but...
I have just opened a Post office CC with 14 months 0% BT at 2.98% handling fee (Hopefully £30 Quidco too). I did a BT online from Barclaycard when applying but it did not go through due to technical problems and I just rung them to find out why. It turns out they can not process BT's from some institutions but will do a cash transfer into your current account at the same rate and terms. So £4k cash over 14months for £119 - Cheap loan? or stick in ISA and get a few pennies from the difference!
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When i took the post office cc i got £50 quidco it took ages to get from quidco but they did pay out eventually.When the post office sent the pin the envelope turned up with a big chunk of out the letter .They tried to say was the sorting machine but when they looked at it you could see someone had torn around the pin.They then paid £15 for the inconvenience thats what they called it.As for the card its still sitting in my draw.
Good to know - I've just had the letter telling me they couldn't do a virgin transfer
Good to know - I've just had the letter telling me they couldn't do a virgin transfer
it'll probably be because it's the same underlying bank.

There's loads of MBNA underpinned credit cards that don't let you do bank transfers from one to another.
Post Office CC isn't MBNA. At least, mine isn't; it's Bank of Ireland.
Yep Sarah7 is correct PO CC = Bank of Ireland
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yes i think it's bank of ireland uk. this was posted before and it said when you apply use branch code 1524054 to track the quidco. well it worked for me, took alittle while for quidco payment but eventually got £50.
I suppose this is only for new customers? I have a PO credit card I've not used for months (only got it for cheap holiday spending)
Post Office = Bank of Ireland
Virgin = MBNA
Barclaycard = Barclays

I don't see why balance transfers shouldn't be allowed between them

Also, it's worth pointing out that Virgin let you do money transfers as well. I don't know if the money transfer rate is the same as the card balance transfer rate for new customers (0% APR for 20 months (2.99% handling fee)) but they're certainly pretty keen on offering them to existing customers and the rates are very good (as an existing customer, I've just been offered 0% on money transfers for 13 months with a 4% handling fee)
Very handy to know - it's a VERY cheap loan!
All post office products are part of the bank of ireland and great for holiday spending
I have conducted a BT from Virgin to PO in the past. - no problems
Surely it can be a cheap loan regardless of whether they do the transfer or not.

For example, pick a card with no debt on it, ask for a BT, then when your card shows in credit, ask that cc company to issue a cheque for the credit.
HereKittyKitty

Post Office = Bank of IrelandVirgin = MBNABarclaycard = BarclaysI don't … Post Office = Bank of IrelandVirgin = MBNABarclaycard = BarclaysI don't see why balance transfers shouldn't be allowed between themAlso, it's worth pointing out that Virgin let you do money transfers as well. I don't know if the money transfer rate is the same as the card balance transfer rate for new customers (0% APR for 20 months (2.99% handling fee)) but they're certainly pretty keen on offering them to existing customers and the rates are very good (as an existing customer, I've just been offered 0% on money transfers for 13 months with a 4% handling fee)



MBNA has just changed their T's & C's and are now introducing a 5% fee for transferring cash from your card to your current account.
how is £119 for a £4000 loan cheap? surely it would be better to spend your money after you've saved up £4000 @ £0 cost, plus accumulated interest over the time you save.
pet2000

how is £119 for a £4000 loan cheap? surely it would be better to spend y … how is £119 for a £4000 loan cheap? surely it would be better to spend your money after you've saved up £4000 @ £0 cost, plus accumulated interest over the time you save.




If the person needs the money now then it is a cheap alternative to a traditional loan. As long as you clear the balance by 12 months of course.
Old news.....basic arbitrage here
I have a Virgin Money loan that needs to be paid off by the end of the next month. It was a 14 month loan with 2.8% handling fee. I was going to pay it off, can i get this one out and start again?
pet2000

how is £119 for a £4000 loan cheap? surely it would be better to spend y … how is £119 for a £4000 loan cheap? surely it would be better to spend your money after you've saved up £4000 @ £0 cost, plus accumulated interest over the time you save.



£119 is cheaper than the interest would work out.
mymymy

I have a Virgin Money loan that needs to be paid off by the end of the … I have a Virgin Money loan that needs to be paid off by the end of the next month. It was a 14 month loan with 2.8% handling fee. I was going to pay it off, can i get this one out and start again?



Yes
pet2000

how is £119 for a £4000 loan cheap? surely it would be better to spend y … how is £119 for a £4000 loan cheap? surely it would be better to spend your money after you've saved up £4000 @ £0 cost, plus accumulated interest over the time you save.



God I hate self-righteous comments like this...

does anyone know whether Bank of Scotland credit card falls into this category????
Not sure i understand.
If I have £4000 on a credit card (virgin for example) I can open a PO credit card and instead of transfering the balance they will give me £4000 cash?

Wouldn't that just mean I'd doubled my debt?
pet2000

how is £119 for a £4000 loan cheap? surely it would be better to spend y … how is £119 for a £4000 loan cheap? surely it would be better to spend your money after you've saved up £4000 @ £0 cost, plus accumulated interest over the time you save.



You're right that saving is almost always better than borrowing, however if you chuck it in a ISA for the 14 months and then pay it off you'll be up for a few quid.

Alternatively, if your car irreparably breaks down or you need a extra cash for a deposit on a house or something this is one of the best ways to raise cash.

Or even better, chop it off your mortgage if it's anything like mine (~6%) over the course of the 14 months I'd save £140 (plus cash back).
r1mmm3r

Not sure i understand.If I have £4000 on a credit card (virgin for … Not sure i understand.If I have £4000 on a credit card (virgin for example) I can open a PO credit card and instead of transfering the balance they will give me £4000 cash?Wouldn't that just mean I'd doubled my debt?



I have an outstanding loan of about £3000 and I am paying interest on it. So if I workout this would be super cheap compared to my current one I can probably save over £100. I will pay off my existing loan and can reduce my monthly interest.
mattgra

God I hate self-righteous comments like this...


Not just self righteous but ill informed. If you can borrow at 3% and lend at >3% (/pay down a 6% mortgage) then it's free money. Feel free to save another £4k over the same time if you're able.
quite a few cards do this in order to repay overdrafts but they dont check if youve actually got an overdraft lol
I don't understand that a loan of £4000 over 14 months is £119.00 a month?
can someone help me out here please..... I tried to call Postoffice but they said they cant check whether they can do BT from Bank of Scotland. They said I need to have a Post office credit card to check this .....
i've done the application dance 3 times. every time i got an error at the last step
slkluv

can someone help me out here please..... I tried to call Postoffice but … can someone help me out here please..... I tried to call Postoffice but they said they cant check whether they can do BT from Bank of Scotland. They said I need to have a Post office credit card to check this .....



i guess you have to get your credit card approved first and then to ask for a BT
I always BT to my Nationwide Select Credit card. Once the money gets transfeered, give a call to Nationwide card center and they transfer cash to my current acount within 2 days.. absolutely no charges. Doing this from last 4 years.
yobear

I always BT to my Nationwide Select Credit card. Once the money gets … I always BT to my Nationwide Select Credit card. Once the money gets transfeered, give a call to Nationwide card center and they transfer cash to my current acount within 2 days.. absolutely no charges. Doing this from last 4 years.


Sorry I didnt understand, could you please elaborate ... You BT from where to your Nationwide credit card? and do Nationwide transfer cash from your credit card to your account for no fee?
dolphin28

I don't understand that a loan of £4000 over 14 months is £119.00 a month?


If you goto Martin Lewis website, you might understand the situation a bit better
slkluv

I have an outstanding loan of about £3000 and I am paying interest on it. … I have an outstanding loan of about £3000 and I am paying interest on it. So if I workout this would be super cheap compared to my current one I can probably save over £100. I will pay off my existing loan and can reduce my monthly interest.



So you would use the cash to pay off your existing credit card?
how does that differ from a normal balance transfer.

My understanding is this post is been sold on the basis that it is a cheap loan and not a means to pay off your existing credit card balance.
r1mmm3r

So you would use the cash to pay off your existing credit card?how does … So you would use the cash to pay off your existing credit card?how does that differ from a normal balance transfer.My understanding is this post is been sold on the basis that it is a cheap loan and not a means to pay off your existing credit card balance.


You are not getting my point, I would take this to clear my existing loan not an existing balance on my credit card. If that was the case I would have taken up any other normal balance transfer option. But with this deal I am getting an oppurtunity to clear my loan and make some saving.
slkluv

Sorry I didnt understand, could you please elaborate ... You BT from … Sorry I didnt understand, could you please elaborate ... You BT from where to your Nationwide credit card? and do Nationwide transfer cash from your credit card to your account for no fee?



Any available cheap Promotional BT can be transferred to Nationwide CC. Once it reaches there, Nationwide CC will transfer that available money to your Nationwide Current account for free and that to within 2-3 days. Yes you heard it right.. free transfer of cash from your Nationwide CC to Nationwide Current account.
slkluv

You are not getting my point, I would take this to clear my existing loan … You are not getting my point, I would take this to clear my existing loan not an existing balance on my credit card. If that was the case I would have taken up any other normal balance transfer option. But with this deal I am getting an oppurtunity to clear my loan and make some saving.



So you have an existing loan and credit card.
You'll get the money from the post office based on your credit card balance but use it to pay off your loan instead?
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