VISA transfer

[pieman]

I have a VISA balance of about 31k on my card as a result of private school fees, travel and tax. I've just put in a request for a new card from Westpac where the balance is transferred (plus a little bit more) to a new VISA card from WESTPAC where there is interest free for 6 months.

Normally I wouldnt bother but for this sort of dough it seems like money for nothing. Of course they hope that I wont pay a cent of the balance, but I always pay the full amount of CC balance and never pay interest on those bloody things. With the 30 odd k, ill just put in a IP offset or TD and then when 6 months finish ill pay it off and close it. Why not?

 

[Aaron_C]

Very common thing to do. I think there are a books out there claiming that's how you get rich. However be wary that it will affect your servicing esp for a large limit like 30k.

 

[Terryw]

I have a VISA balance of about 31k on my card as a result of private school fees, travel and tax. I've just put in a request for a new card from Westpac where the balance is transferred (plus a little bit more) to a new VISA card from WESTPAC where there is interest free for 6 months.

Normally I wouldnt bother but for this sort of dough it seems like money for nothing. Of course they hope that I wont pay a cent of the balance, but I always pay the full amount of CC balance and never pay interest on those bloody things. With the 30 odd k, ill just put in a IP offset or TD and then when 6 months finish ill pay it off and close it. Why not?

I've done this before and think it is not worth the effort. There is the annual fee of the card to take into account too, plus you get whacked high interest on this balance.

You will also get another hit on your credit card and it doesn't really look good transferring balances across as it can be a sign of desparation.

Have you done the sums?

 

[pieman]

I've done this before and think it is not worth the effort.

Have you done the sums?

Annual card fee is $45, but interest paid on 32k is about $880 for 6 months gross, less tax and in my wife's name is close to $700. Not a fortune but if someone in the street rolled up with 7 crisp $100 bills for that work I think I'd be interested.

 

[Property Meister]

+1

higher limit will reduce serviceability,

applying for credit will affect your credit record,

if you've already got the card then go for it,

if you have self control and are the type that uses a credit card as as business tool, then go for it, 30,000 points can be up to half a airfare overseas!

 

[Propertunity]

... then go for it, 30,000 points can be up to half a airfare overseas!

You don't "normally" get points on balance transfers, especially low %IR BTs.

 

[pieman]

True, plus there seems to be a limit of 25k unless you plead your case

 

[mrmonopoly]

Just make sure there isn't a 2-3% of balance handling fee?

SBT's (Super Balance Transfers) to term deposit accounts were very popular in the UK in the early noughties until virtually all the major card providers decided to sneak in the handling fees.

Not directly relevant to Australia, but theres a lot of great info on this kind of thing on the website moneysavingexpert.com

 

[kathryn d]

We do this quite often too.
Make sure you don't put any new purchases on the card. Some cards will charge you the regular interest rate on new purchases, and any payments come off the transferred balance.

Sometimes, paying 2-3 % transfer fee still makes sense...depends on the interest rates.