Can You Churn Interest Free Balance Transfers on Credit Cards?

Hoju on 22/01/2023 - 07:41

Hi - I currently have $5000 sitting interest free on the credit card after a balance transfer churning credit cards for QFF points.

Has anyone ever had success churning balance transfers with cards? This is the first balance transfer I have done, and I wouldn't mind making a few expected big spends now, adding to my $5k interest free amount then putting that on another card.

Experiences welcome thanks

Financial Credit Card

Comments

  • JimmyF on 22/01/2023 - 09:23
    +1

    This is the first balance transfer I have done, and I wouldn't mind making a few expected big spends now, adding to my $5k interest free amount then putting that on another card.

    You will have to pay for it one day. So just be prepared for that.

  • Shadowsfury on 22/01/2023 - 10:02
    +4

    Short answer is you can (sometimes there might be a 1% fee on the way)

    But really is it saving you as much as you think? $5k at 5% is $250/year. If it stops you from churning even one card a year its already not worth it

  • AustriaBargain on 22/01/2023 - 11:09

    If you paid the balance then the card would be free again for unexpected big spends.

  • theoracle30 on 22/01/2023 - 13:02
    +2

    You should read the T&Cs very carefully, but generally, any retail purchases you add to a balance transfer card will start accruing interest immediately at the retail rate (usually no interest free period applies to new charges).

    • nahkk on 23/01/2023 - 00:59

      👆This

  • meowsers on 22/01/2023 - 16:59
    +3

    The easy way to churn money or manufacture spend is to load a Revolut account via Credit Card, unfortunately there is now a small fee of 1%. The plus side is it does not count as a cash advance, and you can also immediately transfer the money back to yourself via a bank transfer or withdraw as cash and earn points on the transaction.

    Charge 5k -> pay off 5k and repeat monthly. If you time this correctly you can get 45 days interest free. Or 110 days with some credit cards.

    The only real reason to do this is because you are flat broke, or (in the past) to manufacture spend for credit card promotions or INGDirect savings promotions.

    • scanuck on 22/01/2023 - 17:50
      +1

      Does this actually work? Wouldn’t the CC company see it as a cash advance and charge you accordingly?

      • meowsers on 22/01/2023 - 19:23
        +3

        No. The MCC for revolut is "financial services" not a cash advance.

        • scanuck on 23/01/2023 - 16:27
          +1

          Nice hack to know

    • Shadowsfury on 24/01/2023 - 08:45

      Nice hack - cheaper than what I've done in the past to create spending for minimum spends

  • MrrMagic on 25/01/2023 - 08:59
    +1

    I opened a Kogan credit card with 18 months interest free on purchased and transfers with 0% fee.

    I see NAB are now offering 36 months for the transfer with no fee.

    Will let you know how i go

    • Hoju on 25/01/2023 - 09:35
      +1

      Thanks that’s what I’m after. Don’t mind having a 0% debt, I can pay it off but why would I when that money can be in my offset account

      • MrrMagic on 25/01/2023 - 09:57
        +1

        Exactly my thinking, why spend your own money

      • MrrMagic on 25/01/2023 - 18:42
        +2

        No deal with NAB but citi accepts Kogan

        Forgot Kogan was issued by NAB lol

      • MrrMagic on 30/01/2023 - 00:20

        Citi approved, moving my kogan balance there for 36 months. Going to keep kogan for all my spending as its still got 15 months of interest free purchases

        • Hoju on 30/01/2023 - 07:15

          Well played thank you for the info

  • coolsteps on 30/04/2023 - 02:13

    Westpac $2.50 fee, Bankwest and ANZ have been fee free recently for cash advances of balances in credit not sure now?

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