0% Money Transfer on credit card

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peteb

Registered User
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1,785
Certain things give me a blank spot so excuse the stupidity. Simple question!!

I rang my credit card provider to see if they could give me 0% on purchases for a few months to save me moving somewhere else to get it. Just need it to get through school and sports beginning again etc. So its more a short term cash flow thing.

They said they couldnt do that but they might be able to get me 0% on money transfers for 6 months.

I thought to myself that would be grand and sure I'd just calculate what i needed ahead of time and transferred it in before I buy. But now I'm thinking, and this is my question, I could just spend on the credit card and then do a money transfer at 0% to my bank and then use that exact amount to clear the purchases. And the net effect is zero percent on what i purchased on the card. Convoluted way of doing it i know. But am i right?

thanks
 
I don't understand. You seem to have the money for the imminent purchases in question. So why do you need a credit card at all?
 
I don't unfotunately. There are some things that need to be paid for ahead of pay day and so I will be 30 days behind the curve in most cases.
 
I don't really understand your intention from your first post so. It seems very convoluted. Maybe you can state it more clearly/simply?
 
Convoluted yes, but it could work for a short period as long as you have a decent credit limit. Though I’m not sure of the longer term benefit as you have to pay back the credit card company everything in full after 6 months to avoid being charged interest.

Here’s how I think you’re proposing it would work:

Say, for example, you have a credit card credit limit of €3k.

1. You purchase €1k of goods on your credit card, (normally charged at say 16% APR if not paid within 60 days).

2. You then do a money transfer of €1k from your credit card to your bank account at 0%.

3. You now have a €2k balance outstanding on your credit card account.

4. Then you transfer €1k from your current account to clear the €1k credit card balance upon which you would have been charged interest.

It works for 6 months just. Then you have to pay back the credit card in full so as to avoid interest charges.

Not sure why you would bother. Just use your current account debit card.

My head is melted.
 
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