Get another one over on the Banks!

[insomniac]

Many banks are offering 0% interest on credit cards for 6 - 12 months.

 

Simply get a credit card, get it maxed out by transferring the money (cash advance) to a savings account with good interest rate.

 

Then you just pay back the minimum payment each month whilst their money your borrowing is earning you money as they are paying you interest.

 

At the end of the free period, simply close the savings account (interest will be added) and then pay off the remaining balance of credit card in full.

 

You could even set the direct debit for the minimum payment to come from this account, thus whatevers left at the end is yours to keep.

 

You should be left over with some tidy profit,

[Geraintheath]

Very easy and don't doubt it's possible.

 

However, most of the 0% offers aren't available to the vasy majority of the site as we are currently 'high risk' - until we win, that is, and our defaults are wiped away. Another possible drawback, and worth checking for individual circumstances/accounts, is the 0% is often accompanied by an asterix stating balance transfers (which can have a fee attatched) and purchases only. Cash advances aren't often included on these type of acounts.

 

Check the fine print before attempting this!!

[deeian]

If you are in a position to do this, check that the credit card allows 'balance transfers' to bank accounts. In some cases they treat it as a cash withdrawal and you get stung for the interest. Best one at the mo is Egg, they allow you to transfer straight to a bank account, 0% interest. But they do charge a handling fee.

[thecornflake]

This is already done by some people using offset banking - the interest they earn from the savings account is then taken off their mortgage.

[Alleycat]

Its called stoozing. Not something I have done due to a very very bad credit rating but its quite popular apparently. You get a 0% card that preferably doesn't charge a fee for balance transfers, use another card as a mule to transfer the funds from and store it in a high interest account until its needed (paying off the minimum each month).

 

We are in the process of doing something similar to pay off our loan early which will mean we save about £100 in interest. Just waiting for OH to get the card approved. Fingers crossed!

[insomniac]

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