Balance Transfer

A

ali

Registered User
Messages
231
Hi all,

I have transferred a credit balance from my bank of ireland card to a new halifax card just before Christmas and the 6 month interest free period is now up. I have applied for an mbna card which offers 10months interest free and I hope to transfer the balance onto the new card to enable me to continue reducing the balance without interest charges. There is about five grand left so I could clear it by the end of the term.I don't use it for purchases.

However I am going on holiday shortly and was going to dip into the overdraft for 2,000 for spending money. I'm now wondering if I should withdraw cash on my halifax card and then transfer the balance of 7,000 altogether and have the interest free period apply to that sum as well. Overdraft fee is about 11% I think.

I know cash advances are a killer in terms of fees on cards but if it was cleared by the balance transfer I assume I would not pay any fees.

Does this sound right or am I missing something?

Thanks,

A.
 
You would still have to pay the cash advance fee. However if you are going to down this road for spending money, it makes more sense than using your overdraft facility.
 
Thanks, Sunny.
I've never used the credit card for cash so I didn't know there was a cash advance fee. I assumed it operated the same as purchases, in that if you paid in full by the due date there would be no fees. Any idea what the fee is ? A standard charge or a percentage?

A
 

No, you pay the fee once you take out cash unless you pre-load your card so it is in credit. The charge differs between lenders so check it out. Usually around the 1.5-2% of amount withdrawn level.
 
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