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Shifting Mortgage to credit card

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    Shifting Mortgage to credit card

    I have a couple of credit cards on interest free and it just makes no sense for me to pay them off - I have 2 credit card on 24 month 0% for a 2.9% balance transfer fee..... That has got to count as pretty much free money.... I had 2 get the 2 to pay off an existing one. I have a few thousand spare on one of them and was considering whether it would be worthwhile shifting a small amount of my mortgage onto it - it may also bring me closer to 70% LTV which will make my re-mortgage cheaper...

    Has anybody else found credit cards very useful in such circumstances?

    #2
    Originally posted by NorthWestPerm2Contr View Post
    I have a couple of credit cards on interest free and it just makes no sense for me to pay them off - I have 2 credit card on 24 month 0% for a 2.9% balance transfer fee..... That has got to count as pretty much free money.... I had 2 get the 2 to pay off an existing one. I have a few thousand spare on one of them and was considering whether it would be worthwhile shifting a small amount of my mortgage onto it - it may also bring me closer to 70% LTV which will make my re-mortgage cheaper...

    Has anybody else found credit cards very useful in such circumstances?
    Remember that you'll need to pay off the credit card before the 24 months are up, otherwise you'll be paying typical credit card rates after that, which could wipe out any benefits.

    Check the T&C's, but i'm sure some credit card companies withdraw the 0% interest fee if you're late on any payments.
    Contracting: more of the money, less of the sh1t

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      #3
      Originally posted by kingcook View Post
      Remember that you'll need to pay off the credit card before the 24 months are up, otherwise you'll be paying typical credit card rates after that, which could wipe out any benefits.

      Check the T&C's, but i'm sure some credit card companies withdraw the 0% interest fee if you're late on any payments.
      Been transferring credit cards since my uni days. Always have a direct debit set-up with minimum payment. Never had a late payment. When 24 months is over I will simply transfer to another credit card - as I have been doing for many years. Worst case scenario is to take out a loan - but overall will be better off as I will have enjoyed large periods of very cheap credit.

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        #4
        Credit cards are the devils work. Any movement of money will be recorded on Experian and suchlike. There are also internal credits scores held by the banks which they will not give you access to. The credit card companies can reduce your credit or pull your credit at any time just like they did to millions of people at the start of the credit crunch. Read the small print!
        If you save money in a bank; again read the small print. The money virtually belongs to the bank and they have the power to do what they see fit with it. It is only by luck and some government guarantee that you can get your money back out less their charges (legalised theft). What happened in Cyprus will happen here but in a more sophisticated manner, drip, drip, drip so you don’t notice.
        "A people that elect corrupt politicians, imposters, thieves and traitors are not victims, but accomplices," George Orwell

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          #5
          Just out of curiosity, how do you shift some of your mortgage to a credit card?

          Comment


            #6
            Originally posted by DimPrawn View Post
            Just out of curiosity, how do you shift some of your mortgage to a credit card?
            I have a credit card which I use for my purchases (cos it gives me some nice vouchers for my spending). Instead of paying that off every month, I could instead pay off part of my mortgage and transfer the credit card balance to the 0% balance transfer instead.

            Comment


              #7
              Originally posted by Paddy View Post
              Credit cards are the devils work. Any movement of money will be recorded on Experian and suchlike. There are also internal credits scores held by the banks which they will not give you access to. The credit card companies can reduce your credit or pull your credit at any time just like they did to millions of people at the start of the credit crunch. Read the small print!
              If you save money in a bank; again read the small print. The money virtually belongs to the bank and they have the power to do what they see fit with it. It is only by luck and some government guarantee that you can get your money back out less their charges (legalised theft). What happened in Cyprus will happen here but in a more sophisticated manner, drip, drip, drip so you don’t notice.
              I guess you have a point but if that is the case with credit cards then the same applies to loans and mortgages - they could suddenly start charging 8 or 9% for your mortgage at which point we would all be screwed... Point is I have 24 months of very low cost credit - do I take advantage of it now while I can and reduce the amount of interest that I pay to the bank? Mortgage and credit cards are both a risk.....

              Comment


                #8
                Originally posted by Paddy View Post
                Credit cards are the devils work. Any movement of money will be recorded on Experian and suchlike. There are also internal credits scores held by the banks which they will not give you access to. The credit card companies can reduce your credit or pull your credit at any time just like they did to millions of people at the start of the credit crunch. Read the small print!
                If you save money in a bank; again read the small print. The money virtually belongs to the bank and they have the power to do what they see fit with it. It is only by luck and some government guarantee that you can get your money back out less their charges (legalised theft). What happened in Cyprus will happen here but in a more sophisticated manner, drip, drip, drip so you don’t notice.
                Another thing to note, if you have a card (even with zero balance) the max limit is counted as credit by the credit ratings agencies which will limit the amount you can borrow.

                If you're looking to re-mortgage, cancel cards you' aren't using.
                Science isn't about why, it's about why not. You ask: why is so much of our science dangerous? I say: why not marry safe science if you love it so much. In fact, why not invent a special safety door that won't hit you in the butt on the way out, because you are fired. - Cave Johnson

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                  #9
                  Originally posted by DimPrawn View Post
                  Just out of curiosity, how do you shift some of your mortgage to a credit card?
                  Call in ze bank and ask to pay by card?

                  Comment


                    #10
                    Presumably shifting your mortgage is going to count as a cash advance, so you should check the same 0% deal counts for that because often they do different rates.

                    After suffering engine failure a couple of years ago, I paid for that (£3.5K) on credit card and shifted it between a couple of 0% cards for about 4 years before paying it off last year. Another thing to check is the minimum payments, because one of the cards I was using demanded double the repayment than the other, even though neither were charging interest. The other trick they pull is always repaying the cheapest balance first, so if you're using the same card for buying stuff, it'll be the 0% balance that's being paid, not the latest purchases at the normal rate.
                    Will work inside IR35. Or for food.

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