Balance transfer question

**Thrush** · 6th June 2012

I'm after an interest free loan and a credit card balance transfer looks like the way to go.

However, I just contacted my credit card (barclays) and have been told that I can only transfer to other credit/store cards.

I also have another credit card which has a balance of 0 (not been used) Could I transfer the money from my Barclay card to my second credit card (Santander) and then withdraw the money directly from that (Santander) credit card?

As the second credit card would have a positive amount in it I was under the impression that they wouldn't charge me a handling fee (whereas if I was borrowing money I would get stung)

What do you all think?

Cheers.

**koola2** · 6th June 2012

Is this for a purchase as Natwest/RBS are currently doing 18 months interest free on purchases.
http://www.natwest.com/personal/credit-cards.ashx

**evilsatan** · 6th June 2012

Tesco credit card isn't as good as koolas suggestion but IIRC it's 13 months interest free and you get cashback in tesco clubcard points. Most cards will charge you for withdrawing cash, I have a Halifax mastercard which is supposed to have free cash withdrawals and balance transfers but no interest free period.

**tronads** · 6th June 2012

Yes, you can do exactly what you say. I am quite the expert on balance transfers... a few years back I exploited what some might term a "loophole" on the Co-op travel credit card which gave cashback on purchases, but also on balance transfers. This was in the days before balance transfer fees came in. I had something like 8 0% cards on the go and I was moving around balances at the rate of about a quarter of a million a month. I netted about �1,300 over a 3-4 month period just for a few phone calls a day, until they closed the loophole and the fun was over.
What i did learn from that is that although you can balance transfer to put a credit card in credit, they dont like you doing it, and the reason for that is that you lose your fraud protection....for example if you have a zero balance and you get scammed for �1000, you are not liable for any of it....however if you have a �1000 credit balance, you arent protected atall (like a debit card). At least thats what one of the companies told me.
I also learnt that despite not having any debt...opening such a large number of cards didnt do wonders for my credit rating. By the end, I was being offered �250 credit limits and the likes.