Currently have a credit card with $13K limit and $0 balance.
Would like to pay a $10K tax bill and invest the cash instead.
Is it possible to apply for a balance transfer offer on a new card before the $10K payment even appears on the old card?
Basically want to make sure I can get approved for the 0% interest offer before making the payment, otherwise would make it in cash.
If you get the new card approved with a transfer from a previous card showing a zero balance then I doubt you could charge $xxx to the new card at zero % interest.
Why not pay the tax bill with existing card and then apply for the zero % card. If approved the new card provider will pay off the old card. If you get knocked back for the new card then simply use the $10k cash you have to pay off the old card.
This is what I'm thinking. But then I wonder if I should just go for a 0% pa on new purchases offer.
The possible downside of the 'new purchase' approach being I won't know for sure if the ATO payment will be eligible for the 0% pa. Again no risk with the cash in hand, but shame to miss out on $XXX interest/dividends.
Can the new credit card provider see the balance of the existing credit card statement?
Given that the balance transfer is made at the time of activation, this should mean the balance they want to see on the old card is at the time of new card activation. So applying with a $10K 'ghost' balance before the balance appears is not unreasonable.
Of course this is my biased logic.
No.
You can but it depends on the bank. Some will freeze the funds as it looks pretty odd, while others will just pass it through and not care.
My dad has done this many times over many years.
Yes. Tried Citi and Westpac Balance transfer and overpaid my wws credit card.
Done this many times with Westpac, ANZ and Citibank. Never had an issue transferring positive balance from credit card. Citibank used to just send out a cash cheque which made things easy.
No guaranteed way to know you'll be approved before you apply. It's a good way to get a 0% loan though.