Egg Money BT

dishmop · 15 November 2005 at 6:22PM

The alternate method requires the new Egg Money credit card. This pays 4% interest if you have a positive balance on it. Therefore get it then apply for any card offering 0% on balance transfers. Then ask them to balance transfer (normally this is debt shifting, but here you’ve no debts to shift) from the Egg Money card to its 0% offer. Thus you’ve now got credit on Egg Money equal to the 0% debt on the new card

Surely the above is wrong. Shouldn't it be transfer money TO the Egg card and not FROM it, to get the 4% or is my brain wired the wrong way round and I'm mixing up the meaning of negative/positive balance. If you took money from the Egg card wouldnt you then have a negative balance?

YorkshireBoy · 15 November 2005 at 7:37PM

It is "debt" that is being transferred, not money.

In the example you give, you are transferring a "ficticious" debt from Egg Money to the other card. The cash (to settle the debt) goes from the other card to Egg Money, thereby creating a positive balance on Egg Money.

dishmop · 15 November 2005 at 8:48PM

The quoted section in red is from one of Martin's articles.

The way I read what he says is to

1 get an Egg card.

2. get another 0% card.

3. BT FROM Egg to the other card.

Therefore you cant then have a positive balance on the Egg card can you?

I can understand what you say to be the correct way. Was Martin typing too quickly?

Reaper · 15 November 2005 at 9:02PM

dishmop wrote:

3. BT FROM Egg to the other card.

Therefore you cant then have a positive balance on the Egg card can you?

The term "Balance Transfer" is used to indicate you are transferring debt, even if there is no real debt involved. So Martin has got it right.

You BT from Egg to the other card, this is what happens:
1) You tell the 0% card you have a balance (debt) to transfer from Egg
2) They take on the "debt" by paying Egg a sum of money
3) Now you have a lump sum positive balance on the Egg card

Hence by doing a BT in one direction money flows the opposite way. It confuses everybody to start with.

YorkshireBoy · 15 November 2005 at 9:12PM

The quoted section in red is from one of Martin's articles.

The way I read what he says is to

1 get an Egg card. (Initial balance will be zero)

2. get another 0% card. (credit limit given is £5K)

3. BT FROM Egg to the other card. (a "fictitious" debt of £5K value is passed from Egg to the other card. The other card "buys" this debt, by paying £5K to Egg to take it on. The result is £5K positive balance with Egg earning 4% AER, whilst you make, say, 2% minimum repayments at 0% interest on the now "real" debt that other card has on it)

Therefore you cant then have a positive balance on the Egg card can you?

I can understand what you say to be the correct way. Was Martin typing too quickly? He's saying the same thing

grumbler · 15 November 2005 at 10:00PM

In your case Mastercard in the center is Egg

dishmop · 16 November 2005 at 4:20PM

It still doesnt make sense the way it is all worded.

If you tell Mr Egg to give £???????? to Fred Card that means that Egg is short of £???? and wants it back.

If I owe Mr Egg £????? why would he be paying me 4% interest?

So do we tell Mr Card to give Mr Egg £?????. or ask Mr Egg to ask Mr card for £??????????

You then have £????? on the Egg card which earns 4% and Mr Card is not charging you any interest.

Now you are going to tell me that that is what happens.

The word From is the confusing bit here. It seems as if it is used by meaning as if you were inside Mr Egg and doing it FROM there.

Reaper · 16 November 2005 at 5:23PM

dishmop wrote:

If you tell Mr Egg to give £???????? to Fred Card...

That's your misunderstanding right there.

If you tell Mr Egg to send money they won't. Or they will charge you some horrible cash advance fee (ok, Egg Money is slightly different, but this is true for 99% of credit cards)

Instead what you do is tell Egg is to transfer a debt from Fred. The only way they can do that in practice is to send them money to repay the debt.

Asking to get debt from a card results in money being sent to that card.

EDIT: Just realised I had not answered the rest of your question...

If you have a 0% credit card called Fred and want to get the money into Egg Money so it will earn 4% then go through these steps.
1) Fred starts off with £0, Egg starts off with £0
2) Ask Fred to "balance transfer £1000 from Egg" (or however much you want)
3) Fred will achieve this by sending Egg £1000 to pay off the debt you pretended to have.
4) Now Fred has £1000 debt at 0%, Egg has £1000 paying you 4%

dishmop · 16 November 2005 at 5:48PM

Thank you for your persistence.

I have got the right idea of how it is done but it does seem that many people might still be confused with the "from" aspect.

I have an ordinary Egg card and have twice given them instruction to BT from another card, but what is being said here is theat I should have told the other card to BT to Egg. In that case, I would have been in credit with Egg and owed the other card more.

dishmop · 16 November 2005 at 6:25PM

what you do is tell Egg is to transfer a debt from Fred.

2) Ask Fred to "balance transfer £1000 from Egg" (or however much you want)

???????????????????

Reaper · 16 November 2005 at 7:54PM

:rolleyes:

The first statement just referred to the first line you wrote.

Everything after the "EDIT" was a worked through example of how to move money from Fred to Egg, which is the normal direction people send money in because:
1) Egg Money pays interest
2) Egg cards can do SBTs

If you want to move it the opposite direction simply do the opposite.

Egg Money BT

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