Best way to take advantage of bank low/interest free credit card transfers...

ninetyNineCents on 21/07/2016 - 13:06

Hi

Lets just pretend getting the card is not a problem, how can one best take advantage of any low interest or free balance transfers.

? How does the balance transfer giving bank know exactly how much you owe on the original card ?

I thought that would be impossible due to privacy legislation.

I was thinking of opening a second paypal linked to a second or different cc, and paying myself a large amount using a credit card. The balance xfer bank would pay the first card. After taht i would withdraw the "credit" on my second paypal to a different bank account.

One major concern is what if paypal keeps the money.

Whats the best way to "get" the money without actually buying stuff on a credit card…

Financial

Comments

  • Bunnycat on 21/07/2016 - 13:17
    +1

    Citi allows a 'cheque to self'
    Set up balance transfer and just deposit cheque into savings account.
    With citi, you need to pay back 2% per month (24 months on the platinum card).

    I have literally just done this myself. Pretty easy. Citi are a bit of a pain to deal with though.

    • ninetyNineCents on 21/07/2016 - 14:45

      I can verify Citibank works as you mention. Personally I have already done this recently and was looking forward to using a different bank. I guess this would be most useful if people verified which banks allowed positive credit cards to transfer money away from hem without any charges…

      • meumax on 22/07/2016 - 14:52
        +1

        Yes, I have done this with ANZ platinum card. Got balance transfer to it putting it into positive balance then use ANZ online banking to transfer the positive balance to my ANZ transaction account.

        Before doing this with any credit card, you need to carefully read the product disclosure statement, particularly the part about fees for cash advances.

        For example, the ANZ fee schedule states that there is a fee for cash withdrawls from the card BUT, if the card is in a credit balance, then any credit will offset the amount withdrawn for the purposes of calculating the cash advance fee which works out to zero since I just withdraw the amount by which it is in credit.

        I have also done this with my Citi Signature Visa (putting it into credit by bal transfer from another bank). Though with that one, you cannot transfer the credit balance via their online banking site. You have to ring them up and request they send you the credit balance as a cheque which they did when I asked.

  • donbot on 21/07/2016 - 13:43

    I get Balance Transfers made to my Bankwest credit card - and it puts it into a positive (credit) balance. Then within their internet banking, I can make a transfer (Pay Anyone) to my offset account with another bank. You dont get charged as a cash advance as long as your account is in credit at the start and the end of the day.

    Source: I've done it twice this week.

    Faster and more secure than Citibank cheque to self - and also allows you to take advantage of BTs from other non-citibank providers who dont give cheque to self.

  • Mad Max on 21/07/2016 - 15:00

    Has anyone done this (balance transfer money to put the card in credit and then shift or withdraw the money out) with a Coles Master Card as a recipient of the BT?

  • Baysew on 21/07/2016 - 15:25

    How does the balance transfer giving bank know exactly how much you owe on the original card ?

    You advise them how much you want to Balance Transfer (Which may not be what you have owing)

    • ninetyNineCents on 21/07/2016 - 17:11

      I was wondering if there was some agreement or other business mechanism where one bank actually told the other…

      • Baysew on 22/07/2016 - 09:26

        What would the point of that ?

        • ninetyNineCents on 22/07/2016 - 10:05

          Just wondering if the bank knew the amount you really owed on your card,..

        • Baysew on 22/07/2016 - 10:13

          @ninetyNineCents: Is your question about Balance Transfers or the actual application process ?

          You advise the bank what is owing on the card when you do your application and advise them the amount of the balance transfer required. The bank of course when do a credit check as well, as part of their verification procedures.

  • BargainBusker on 03/08/2016 - 10:42
    +1

    Can somebody provide advice on my current situation. Currently have a card with ANZ and a card with bankwest. I'm looking to move the balance from bankwest as the promo interest period is coming to an end. I rang ANZ and they said it will be 3% to transfer to them. Is it possible to shift it without paying the fee?

    I can always apply for a new card with a different bank and transfer for a low/free balance transfer rate and pay the annual fee.

    • Seven8Nine on 03/08/2016 - 11:10
      +1

      which ANZ Credit Card you own ?

      say you have Anz Platinum/ Black Card with $5k limit and you dont owe anything.

      Now on your Bankwest card, you have limit of 10K and you doing transfer of 90% amount to above ANZ card.

      After the transfer to ANZ, your card balance will be 5K+9K = 14K. Once money hit your Cr Card then do internal transfer of 9k to ANZ Saving or everyday account.

      (pop up might come warning of cash advance fees but there will be no charge to you as you are not using credit card limit).

      I have done it recently so as my frnd with no add. fees.

      if your 3% fee is balance transfer fee, then its upto bank and how u negotiate with them for the waiver

      Westpac/ CitiBank dont charge Balance transfer fees to my knowledge.

      • BargainBusker on 03/08/2016 - 12:04

        Thanks Baa - I'm a little confused - Surely the 9k debt you transfer from Bankwest becomes a 9k debt on the new card? Its not actually positive but you can still move it internally? i have the ANZ balance visa with $15k limit.Owe nothing on it. Looking to move $5k from bankwest - I dont have an everyday with Anz as i bank with ING.

        • Seven8Nine on 03/08/2016 - 13:54

          in my example, am transfering from Bankwest ( 0% interst for x months) to ANZ.

          Debt to Bankwest for sure, but 0% interest and you pay min monthly payments.

          With ANZ, you can open everyday account /savings account anytime ( even online).

      • Mad Max on 04/08/2016 - 18:58

        @Baahubali
        Are you absolutely sure that there are no interest or cash advance fees when you move the money from ANZ credit card to ANZ savings account (assuming you only move the amount that is in positive balance)

        • Seven8Nine on 04/08/2016 - 20:10

          Yes..

          ( if in doubt, try with 2$ or can check t&c's of your card )

        • Mad Max on 04/08/2016 - 21:01

          @Baahubali:
          Thank you.

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