Anyone tried the tips on making money from your credit card? .i.e Doing a balance transfer from a 0% card and shoving the money into a high interest savings account.
Anyone had any problems with this? Im thinking of giving it a go but only thing that worries me is getting the money to the savings account from the credit card. Writing a credit card cheque could have additional charge. Any tips or experiences (good or bad)?
achap i work with buys premium bonds woith his 0% via phone - then cuts card up - then keeps transfering the balance to other 0%, he's had a few small wins and is guaranteed his money back if he needs to pay the credit card off I hate oweing money so it's not for me
I've been doing this for years, though credit card companies are now getting wise to this and imposing a charge of around 2% for tranferring a balance. Just keep your eyes peeled and read the small print.
First off, I'd recommend you get an Egg card and Egg savings account. Transfer your balance to the Egg card. Then you have to wait 5 days for the payment to clear. Then send Egg an email through their secure messaging system, asking them to move the credit balance of £x from your Egg card, to your Egg savings account. Once they've done this, you can do what you like with the money, and you haven't had to pay a single charge for any of it!
I'd recommend getting a Cahoot savings account and moving the money there. They seem to consistently have the highest interest rate.
After 6 months of having an Egg card, you'll be allowed to apply for an Egg Blue card. You can be really cheeky and transfer any debit balance you might have from your standard Egg card over to this at 0% for 6 months.
After that, you will have had your standard Egg card for a whole year. They do a special anniversary offer whereby, you can now make a 0% balnce tranfer back to your standard Egg card.
Other cards I'd recommend are: MBNA - they give me a HUGE credit limit and quite often give away free gifts for new customers like watches and phones etc. They only ever ask for a £5 minimum payment every month! After you've had the card for 6 months and paid the remainder of the balance, close the account, wait another 6 months and you can re-apply for a card as a new customer and do the whole thing again.
Morgan Stanley - They really try and look after their existing customers. Every so often out of the blue they'll offer you a balance transfer for 5 months or so at 0%. They also offer cash back incentives, like, spend £200 in July and we'll credit £10 to your account in August. I'd keep this card handy and never close it.
Remember to close card accounts after you've paid the balance off, as they will sit within your credit rating report making you look bad.
Pay your minimum payments and balances off promptly, either do this by Direct Debit or keep a diary and a very watchful eye on all your accounts. Every late or missed payment will lessen your profits and also look bad on your credit rating.
Don't be too greedy! Most card companies will not let you re-apply for a card for at least a year after you last closed an account with them. If in doubt, phone and ask them first, as applying for an account and getting rejected will go against you on your credit rating.
i tried that with my interest-free student overdraft. but i kept on transferring the money back via telephone banking when i'd had a few shandies and it soon went!!
but if you have that thing called willpower, give it a go! just keep your eye on how often you need to change cards
If you borrow £5000 on a card and invest it at 3.5% net, you'll earn £175 per year. This equates to £14.58 a month. Considering that you have to pay back the minimum payment, of let's say a fiver a month, you are actually getting into 5 grands worth of debt and earning less than a tenner a month.
