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Hi, Every couple of years I get a new credit card when the initial terms run out. Normally I get a 0% on purchases and buy something expensive (bike) then pay off the minimum amount whilst putting money away in premium bonds and S&S ISA. At the end I flatten the card and start again.
This time I don’t need a new bike so was thinking of get a balance transfer card, some of which are offering 0% plus no fee.
Am I missing a very obvious reason not to do this, other than carrying debt.
Cheers
Might be prudent, if interest rates go up, it might be the beginning of the end for interest free credit cards, if you borrow interest free (while you can) and put it where you’ll get decent interest you’d be quids in!
Seems like a fair bit of effort for little reward. Not aware of any accounts offering any worthwhile interest rate.
Even if you stick ten grand on the card, aren't you looking at a couple of hundred quid interest at the most?
Which accounts were you thinking of?
<edit>
Just realised you are planning on trading with the money. Betting money you don't actually have on the stock market..... what could possibly go wrong?
🤔🙄😒
I've done it with three cards, £16.5k.
Bought premium bonds. Made £225 so far, not a lot but potential for more and pretty much zero risk so why not?
Depends how much you value your time really.
Slightly risky but probably worthwhile over the term with an S&S ISA etc. I wouldn’t trade with it. And I’d check you won’t get penalised credit file wise for closing cards.
Is that true that your credit rating can get worse for closing a paid off card?
Generalist - I’m weighted more in favour of premium bonds which whilst the return has been average still offers security. My ISA is with Plum it’s fairly varied. So far returning 19%.
Sounds like the issues are limited as I’ve got enough to flatten the debt if needed. Thanks all.
some of which are offering 0% plus no fee.
Mind sharing who these are? I'm always up for a bit of lazy stoozing.
Mind sharing
He won’t. Because there aren’t any 😎
Likely a 4% transfer fee?
No transfer fee on any of them if you do it right.
.
Link new card to PayPal account
Make payment to your other PayPal account, partner's one, whatever, which is linked to bank account.
Withdraw funds to bank.
Pay off first card.
.
Whole balance transfered (up to limit of new card obviously) for no cost.
.
Depends how much you value your time really.
Paperwork for card applications, faffing about with transfers and payments, etc has probably taken me around 3hrs total, so if looked at like that I've made around £75/hr, which is (considerably!) more than I get by working...
There'll be another half hour or so when the interest free period runs out and I need to sell the bonds and pay a card off, but hopefully won a bit more by then.