Money Transfer for the Price of a Balance transfer - Works with Most Credit cards!

3
Found 27th Dec 2017Edited by:"computerrobot"
I am not aware of anyone else doing this but Have tried it myself a few times.

1. You take out any new credit card with a balance transfer offer.
2. Transfer the balance from another "empty credit card" (make sure it equals about 90% of the new credit card limit.
3. After the money has gone through, you simply ring the other card in part 2 and get the credit transferred to your current account free of charge.

The last time I did this was a few months back. I opened a credit card with Virgin and made a balance transfer of about £6k from my empty HSBC credit card (with HSBC's permission). I have effectively a 6 grand loan with free interest for about 3 years and paid about 1% fee at the time.

If you are in any doubt, ring your empty credit card company and ask if you are allowed to go into credit (rather than debt).

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Are you not paying any interest or fees on the 6k you owe HSBC? Presumably I'd the debt is transferred to a current account you either have 6k in it or you are paying a massive Overdraft fee?
Edited by: "catbeans" 27th Dec 2017
No, I made sure the balance on my HSBC card was £0 before I made a balance transfer. So the virgin card company (i think mbna) transferred cash to the HSBC card. I only paid the transfer fee to Virgin. HSBC transfers the credit straight to your current account free of charge once you ring them up and ask.

The 6k debt is only with VIRGIN card. The £6k minus the transfer fee ended up in my current account.
Edited by: "computerrobot" 27th Dec 2017
OK I think i ought to rewrite the post to make it clear but i am unsure of the exact terminology to use. A "balance" is I suppose what you owe to the credit card. I guess there's no reason why that balance cannot be negative, positive or indeed zero. Perhaps I should have written "made a balance transfer "from" my HSBC - rather than "to". Even though its zero.
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