Changing credit card and making a profit?

S

stuffit

Registered User
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How feasible would it be to...

- Open a new credit card - say BOS Ireland which gives 0% for 6 months on balance transfers.

- Tell them I've 8,000 o/s balance on my existing credit card.

- Get BOSI to transfer 8,000 to my existing credit card.

- Close down the old credit card and get 8,000 cash which I could lodge with RaboDirect at 3.2% interest

Total saving 8000 x 3.2% x 6/12 = 128 EUR before DIRT


The only problems I can think of are...
Can BOSI check how much I actually owe on old credit card?
Will old credit card company give me all the prepaid cash back without charging any fees?


Ste
 
Can BOSI check how much I actually owe on old credit card?
I have over paid card on balance transfers , no problem (MBNA from AIB)

Will old credit card company give me all the prepaid cash back without charging any fees?
Should be no charge as long as your in credit...

Don't forget you €40 levey
 
Re. 40 euro levy

Am I right in thinking that since 1st January you can change credit card provider and only pay the levy just once even though 2 a/cs were open during the year?

Ste
 
If you have a balance in your exisiting credit card, can you really withdraw it and then close the account??
 
stuffit said:
Re. 40 euro levy

Am I right in thinking that since 1st January you can change credit card provider and only pay the levy just once even though 2 a/cs were open during the year?

Ste
Click to expand...

your plan needs both cards active at the same time...
 
stuffit said:
How feasible would it be to...

- Open a new credit card - say BOS Ireland which gives 0% for 6 months on balance transfers.

- Tell them I've 8,000 o/s balance on my existing credit card.

- Get BOSI to transfer 8,000 to my existing credit card.

- Close down the old credit card and get 8,000 cash which I could lodge with RaboDirect at 3.2% interest

Total saving 8000 x 3.2% x 6/12 = 128 EUR before DIRT


The only problems I can think of are...
Can BOSI check how much I actually owe on old credit card?
Will old credit card company give me all the prepaid cash back without charging any fees?


Ste
Click to expand...

AFAIK, a balance transfer works by getting your new cc provider to take on your existing cc debt. You have no involvement in process. You just new cc co. your cc no. & they clear your existing balance & transfer to your new card. Your new cc provider wouldn't transfer money into your old cc. But am open to correction.
 
The only way that your saving scenario is possible is if you get cash from MBNA at 1.9% and then lodge this into Rabo. Then switch to Ulster bank and get 0% interest for 9 months.This interest rate from MBNA is only available to new customers for the first 6 months.

Also, it is unlikely as a new customer that your credit limit would exceed €5000.

Marion
 
Marion said:
The only way that your saving scenario is possible is if you get cash from MBNA at 1.9% and then lodge this into Rabo. Then switch to Ulster bank and get 0% interest for 9 months.This interest rate from MBNA is only available to new customers for the first 6 months.

Also, it is unlikely as a new customer that your credit limit would exceed €5000.

Marion
Click to expand...

...Except that you will be hit with daily interest straight away when you withdraw cash from MBNA and not at an intro rate.
 
Except that you will be hit with daily interest straight away when you withdraw cash from MBNA and not at an intro rate.
Click to expand...

MonsieurBond, you will get the cash at the intro rate of 1.9% if you write one of their cheques or you could just ask them to lodge the agreed credit limit to your bank a/c.

I forgot to mention that if you were considering this, that it would be a good idea to wait until 02 April.

Marion
 
Well if you are good at managng your money then the ideal things to do is open a BOI CC (0% on purchases for 6 months)

put everthing you buy on the credit card. Everymonth pay the balance into you northern rock/rabboaccount. after 6 months transfer to

Ulsterbank CC (9months 0% on purchases and transfers)
continue to do the same thing. after 9 months transfer to

Tesco CC (6months 0% on purchases and transfers)
continue to do the same thing. after 6 months transfer to

NIB CC (9months 0% on purchases and transfers)
continue to do the same thing. after 5 months transfer back to UlsterBank!!

So you can keep doing this until you reach your credit limit... by the way someone mentioned a 5000 limit on a new cc account. I recently switched to Ryanair(MBNA) and was given 12,000 of a limit starting off.
 
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