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use 0% CC for line of credit debt

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  • Sep 24th, 2018 9:41 pm
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Sr. Member
Aug 6, 2014
830 posts
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Ottawa, ON

use 0% CC for line of credit debt

friend of family is considering using 1-year-at-0% MBNA CC to pay off line of credit (7.99%) and save on interest for a year. problem is i'm guessing you'd need a second credit card to generate a bunch of cash advances to pay off the LoC, which is a little bit of a pain, and also reduces overall savings. is there any other cheaper way of doing making this switch?
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Dec 24, 2007
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Better read the fine print as cash advances most likely probably do not qualify for the interest-free period since banks earn no merchant fees from them, only on purchases. Although you can get away with buying Gifts Cards at retailers, which are like Cash.
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Nov 24, 2013
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Double check the fine print on that specific offer, but often MBNA "balance transfer" offers allow you to advance funds to a bank account, which is technically a cash advance but it's treated as a balance transfer. I just did one last week.
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May 17, 2012
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you get the card.

you get the balance transfer to your bank account

you pay off LOC

you pay off the credit card over the year. if you can't pay it off, use your LOC to pay off the card and repeat the process.
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Feb 9, 2018
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Yes, MBNA cards offer to transfer cash to a chequing account which is counted as a regular balance transfer transaction not as cash advance.
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Mbna (td) still offer 0% - 12 months - 1% fee?

I though they stopped that "deal"?
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Oct 7, 2012
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fisher44 wrote: friend of family is considering using 1-year-at-0% MBNA CC to pay off line of credit (7.99%) and save on interest for a year. problem is i'm guessing you'd need a second credit card to generate a bunch of cash advances to pay off the LoC, which is a little bit of a pain, and also reduces overall savings. is there any other cheaper way of doing making this switch?
Love doing this
was able to keep an almost maxed TFSA over the last few years on "borrowed money" at zero percent :D
With rates going up everywhere though, you have to be more creative...i always keep some empty credit cards open because eventually they send you a Balance Transfer offer that's competitive.
If you can juggle multiple offers, you can keep a good portion of debt in line at good rates with BT offers with having to fall back to the LOC only if you're waiting for an offer to come through that you find suitable.
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Nov 24, 2015
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sunbat wrote: Yes, MBNA cards offer to transfer cash to a chequing account which is counted as a regular balance transfer transaction not as cash advance.
+1
Jr. Member
Aug 12, 2014
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Brampton, ON
HyperTech wrote: Mbna (td) still offer 0% - 12 months - 1% fee?

I though they stopped that "deal"?
Yuppp they still offer it...just not as often as they used to.
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HyperTech wrote: Mbna (td) still offer 0% - 12 months - 1% fee?

I though they stopped that "deal"?
I can't find 12 months anymore. I got 10 months with this card last month. But the 0%/10months seems to no longer be offered on that card either.

Here's one that still has it: https://apply.mbna.ca/applicationform/g ... n_CA#page1

Many more here thanks to @titaniumtux.
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fisher44 wrote: friend of family is considering using 1-year-at-0% MBNA CC to pay off line of credit (7.99%) and save on interest for a year. problem is i'm guessing you'd need a second credit card to generate a bunch of cash advances to pay off the LoC, which is a little bit of a pain, and also reduces overall savings. is there any other cheaper way of doing making this switch?
Kiraly wrote: I can't find 12 months anymore. I got 10 months with this card last month. But the 0%/10months seems to no longer be offered on that card either.

Here's one that still has it: https://apply.mbna.ca/applicationform/g ... n_CA#page1

Many more here thanks to @titaniumtux.
A day late and a dollar short.

0%/12 months with $60 on GCR got destroyed in July this year. I took it for kicks, BT'd most of my MBNA CL. Collected WB's on bank accounts at TD CT, Achieva, and Meridian. Those WB's plus GCR was nearly double my BT fee, so instant profit right there. SCU TFSA now at 2.7% is where most of that loan is sitting.

Now eight cards remaining with the 0%/10 months BT offer. Take it while you still can...but also consider...

@Kiraly and I have been using MBNA for daily spending for years, explains our tasty CL's. For new applicants, MBNA will likely approve $2-7k. With $5k+, gives you "play money" to collect on bank account promo's, but not enough juice to bother with TFSA IMO.

For those without MBNA history, it's a bit late in the game to jump on BT offers, but take it while you can if you'd benefit from it.
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titaniumtux wrote: A day late and a dollar short.

0%/12 months with $60 on GCR got destroyed in July this year. I took it for kicks, BT'd most of my MBNA CL. Collected WB's on bank accounts at TD CT, Achieva, and Meridian. Those WB's plus GCR was nearly double my BT fee, so instant profit right there. SCU TFSA now at 2.7% is where most of that loan is sitting.

Now eight cards remaining with the 0%/10 months BT offer. Take it while you still can...but also consider...

@Kiraly and I have been using MBNA for daily spending for years, explains our tasty CL's. For new applicants, MBNA will likely approve $2-7k. With $5k+, gives you "play money" to collect on bank account promo's, but not enough juice to bother with TFSA IMO.

For those without MBNA history, it's a bit late in the game to jump on BT offers, but take it while you can if you'd benefit from it.

I just did a Great Canadian Rebates application for a Visa Value from Scotiabank, got the 55.00 and a snappy 0.99 BT offer for six months. Perfect for that apple iphone and apple watch upgrade yesterday without having to go on a two year contract while still sticking with my same BYOD plan and getting six months cheap financing to pay this bill off :)))
There is no service charge on this offer, just the 0.99 for six months...
im wondering what other offers are out there for other members here, maybe we should have a list thread for this? :)
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gogoblender wrote: I just did a Great Canadian Rebates application for a Visa Value from Scotiabank, got the 55.00 and a snappy 0.99 BT offer for six months. Perfect for that apple iphone and apple watch upgrade yesterday without having to go on a two year contract while still sticking with my same BYOD plan and getting six months cheap financing to pay this bill off :)))
There is no service charge on this offer, just the 0.99 for six months...
im wondering what other offers are out there for other members here, maybe we should have a list thread for this? :)
So, if I get this right...
  • $29 AF, but $55 GCR money
  • $0 BT fee, but 0.99% interest for 6 months, making it effective 1.98% per year

This is tricky. I generally am against low interest cards with AF, but this promo isn't all bad. Then downgrade/product change the card afterwards. Also, the theoretical 1.98% interest is on the balance, not on the entire BT.

If your BT is small (say <$3k), it's potentially better than MBNA because of GCR money. I wouldn't use that card for TFSA leveraging, but it's not all bad.
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titaniumtux wrote: So, if I get this right...
  • $29 AF, but $55 GCR money
  • $0 BT fee, but 0.99% interest for 6 months, making it effective 1.98% per year

This is tricky. I generally am against low interest cards with AF, but this promo isn't all bad. Then downgrade/product change the card afterwards. Also, the theoretical 1.98% interest is on the balance, not on the entire BT.

If your BT is small (say <$3k), it's potentially better than MBNA because of GCR money. I wouldn't use that card for TFSA leveraging, but it's not all bad.
Yah the offer on this was tricky... but i made sure i was speaking to someone who could paraphrase me perfectly so that we both understand exactly what the terms were. In fact, from GRC they are offering two value visas... one at 29 AF and the other at Zero...but both come with different BT offers and both with different yearly if you keep a balance. I went with the 29.00 yearly because the zero dollar card came not with a 0.99 BT Offer but a 3.99 BT offer. I initially went only for a Balance Transfer of about 3 k to pay off over six months at 0.99... but , now im thinking maybe ill take all the 10 k being offered at 0.99 for six months... and leave the 7k in my Tangerine account at a higher interest rate and make a small profit? :)
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gogoblender wrote: Yah the offer on this was tricky... but i made sure i was speaking to someone who could paraphrase me perfectly so that we both understand exactly what the terms were. In fact, from GRC they are offering two value visas... one at 29 AF and the other at Zero...but both come with different BT offers and both with different yearly if you keep a balance. I went with the 29.00 yearly because the zero dollar card came not with a 0.99 BT Offer but a 3.99 BT offer. I initially went only for a Balance Transfer of about 3 k to pay off over six months at 0.99... but , now im thinking maybe ill take all the 10 k being offered at 0.99 for six months... and leave the 7k in my Tangerine account at a higher interest rate and make a small profit? :)
Nah, unless you're doing TFSA intro 2.5%, or if you're unemployed. That Tang HISA is taxable interest, and unless you're on welcome offer, it's only 1.25% interest.

Best TFSA is SCU. (Steinbach credit union). Got your timing right. No term, but treat it like term (until year end) because of how their interest is calculated and paid out. For six months, borrow in end June and dump in SCU and make some money. But only dump $$ minus six months minimum payment because of SCU's withdraw fee on TFSA of $3. Initial funding via e-transfer, so it's real easy.

Btw, you should open Achieva Financial. $25 per referral (max four per year), they give you $1/month, and interest is currently 2.15% on HISA & TFSA. Park $250 for a month and then the free money is yours. Initial funding via mobile chq deposit, super easy.

Open Hubert Financial as well if you're bored, they're more work though. Gotta snail-mail chq.
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