This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

Interest free credit card for balance transfer

Jump to new

RazzaDazzla

Joined
25 July 2008
Posts
383
Reactions
5
I have a mate with some $20,000 worth of debt in personal loan and credit cards.

He earns some $100,000 p.a.

I am suggesting to him that he takes advantage of a credit card with low or interest free for some period of time.

anyone know of any credit card companys with any deals on at the moment for zero or low interest for balanace transfers for x period of time?

He will not be making any new purchases on this credit card, he will simply be using it as a tool to knock over his debt.

Cheers
 
Hi, there was a post on this some time back. I refuted the claims that banks and the like would turn over for cash straight up on the credit card.

I was poo pooed for the claim... I then created a post asking for info on same when a friend had gone berzerk... I do not believe I recieved a response..

Your best best is www.infochoice.com.au in my not so humble opinion..
 
I'd be curious as to why he'd have those kind of debts in the first place if he's on $100K ?
 

I'm not sure what you're describing here exactly but the way it can work (and I know because I've done it several times) is that you go to a bank who has enough cash on hand to allow you to cash advance the maximum on your current card. Don't pull it through the wall, go into the bank and draw it out in one hit. If you're planning to pull 20k don't just rock up, unless it's a major branch they will claim they don't have the cash to give you.

Then when your new card provider does the balance xfer they'll xfer as much of that 20k as the limit on your new card will allow...hopefully the lot. If not, deposit the remaining cash and use it to zeroise the balance of the old card.

And there you have it...voila...20k interest free (or low interest...even lower than a mortgage equity redraw) for 6 or 12 months.
 
gav said:
I'd be curious as to why he'd have those kind of debts in the first place if he's on $100K ?
Click to expand...
Yep, the same question occurred to me.
Woolworths have been advertising a new, interest free credit card.
I know nothing about it.
 
gav said:
I'd be curious as to why he'd have those kind of debts in the first place if he's on $100K ?
Click to expand...

Maybe he poured money into superannuation while using the credit card to finance a renovation project which he eventually sold for a profit without paying a cent of capital gains tax but in the meantime during the sales process and settlement he wanted to refinance the debt at the lowest rate possible...judge not lest ye...:.
 
gav said:
I'd be curious as to why he'd have those kind of debts in the first place if he's on $100K ?
Click to expand...

Hahaha trust me, that's the million dollar question all his mates ask him. No, there's no gambling, drug or sex addiction, just a complete lack of money management that has compounded itself over the years.

Eg. of such mismanagement include receiving six (6) overdrawn/dishonour fees in a month on his CBA streamline account at $30 a hit! That's $180 in November alone for not ensuring he has enough cash in his account to cover his direct debits etc.
 

Not a bad idea. I believe the Citibank credit card allows you to transfer balances of personal loans as well.

Also, this mate i'm helping, he's not the kind of guy I would want to see walking the streets with large somes of cash on him! Chances are he would be walking down the mall with a hole in his pocket with $100 notes falling out as he walked!
 
I have done this multiple times during the high interest era... you can put the 20K in a term deposit earning 7-8% whilst doing minimum repayment on your low intro rate credit. Citibank once even offered ReadyCredit (line of personal loan, not a credit card) which allowed you to cash advance at 2.9%... crazy times.

The lower interest rate in deposits these days don't really justify the plan as much, but putting low interest money in your home loan offset could still be worthwhile.

But the key is good self discipline to make sure you don't spend the cash you think you have
 
Adam A said:
Im pretty sure that balance transfers dont apply to cash advances?
Click to expand...

You're right. Cash advances are also not included in any interest free days which means you are charged at the standard variable interest rate as soon as you withdraw the cash.

Also if you then use the card for purchases and pay the minimum payment at the end of the month it goes toward paying off the lower interest rate first...
 

judge not? just read Razza's post below... :


sorry Razza, but I dont feel sorry for your mate at all! I have 3 brothers, all have similar money management skills as your mate. very frustrating at times!
 
RazzaDazzla said:
Not a bad idea. I believe the Citibank credit card allows you to transfer balances of personal loans as well.
Click to expand...

I would not do it with Citibank. They've been known to levy one-time fees of several hundred dollars if you haven't transacted on their cards and just used them to do a balance transfer to get the low rate.
 

No, you're both wrong. I've done it several times. Not for 18 months though, so in the current market things may have changed. And I don't expect it's the same for all card providers.

The rest of what you write is correct though. Which is why it's important NOT to use the card for regular transactions. Use the old card to do that.
 
theasxgorilla said:
No, you're both wrong. I've done it several times. Not for 18 months though, so in the current market things may have changed. And I don't expect it's the same for all card providers.
Click to expand...


Unusual response, we are either wrong or right?
Have you ever thought of a job in politics or as a broker?(re disclaimer)
 
theasxgorilla said:
I would not do it with Citibank. They've been known to levy one-time fees of several hundred dollars if you haven't transacted on their cards and just used them to do a balance transfer to get the low rate.
Click to expand...

Hmmmmmmm... How can they justify a fee just becauses you don't make new purchases on the card?

Can anyone show me the fine print where it says they can do this?
 
RazzaDazzla said:
Hmmmmmmm... How can they justify a fee just becauses you don't make new purchases on the card?

Can anyone show me the fine print where it says they can do this?
Click to expand...

I didn't bother looking it up or fighting it. I took it as a sign that this was a bank not worth doing business with. So I closed the facility and vowed never to have anything to do with them again. And it was a pertinent lesson in what banks really want credit card customers to do.
 
You must log in or register to reply here.

Similar threads

February 2025
2
Replies
34
Views
2K
ducati916
LBY - Laybuy Group Holdings
Replies
5
Views
2K
System
Basic chart analysis/chart reading 101 for beginners
Replies
10
Views
4K
Gunnerguy
G
S
Advice - next stage in our investment plan
Replies
17
Views
2K
PZ99
All trading needs to cease for 14 days prior to Monday open in Sydney
2 3 4
Replies
75
Views
11K
divs4ever
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...