We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
confusion : The middle route + 'tarting'
Options
andrew_b6k
Posts: 183 Forumite
Right, I understand the concept of Egg Money, and have been approved for the account. I now need to apply to get any card offering 0% on balance transfers, that much I understand.
Then I will need to balance transfer FROM the egg money card TO the 0% card. This is the bit I don't understand. I'll have a zero balance on the egg money card as it's a new card and I haven't spent any money on it, how does the £0 balance get transferred over and suddenly become a credit in the egg money account?
I'm also planning to transfer £10,000 savings into the egg money, and get 2% for transferring it out as mentioned on another thread on here. Do you think both stoozing and taking advantage of the 2% is a bad idea, as I'd like to keep the card long-term.
I have a good credit record at the moment, will this whole 'tarting' thing adversely affect that?
Then I will need to balance transfer FROM the egg money card TO the 0% card. This is the bit I don't understand. I'll have a zero balance on the egg money card as it's a new card and I haven't spent any money on it, how does the £0 balance get transferred over and suddenly become a credit in the egg money account?
I'm also planning to transfer £10,000 savings into the egg money, and get 2% for transferring it out as mentioned on another thread on here. Do you think both stoozing and taking advantage of the 2% is a bad idea, as I'd like to keep the card long-term.
I have a good credit record at the moment, will this whole 'tarting' thing adversely affect that?
0
Comments
-
In his "middle route" article, Martin describes it thus...andrew_b6k wrote:Then I will need to balance transfer FROM the egg money card TO the 0% card. This is the bit I don't understand. I'll have a zero balance on the egg money card as it's a new card and I haven't spent any money on it, how does the £0 balance get transferred over and suddenly become a credit in the egg money account?
"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.
This may breach providers terms if they say ‘what debts do you want paid off’ yet most don’t ask."
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1076883546,34894,#middle
Personally, yes. This loophole will be closed soon I'm sure. Certainly, in calling regularly for BACS transfers you will draw attention to yourself.andrew_b6k wrote:I'm also planning to transfer £10,000 savings into the egg money, and get 2% for transferring it out as mentioned on another thread on here. Do you think both stoozing and taking advantage of the 2% is a bad idea, as I'd like to keep the card long-term.
It's bound to "affect" it. To what degree will be determined by the amount of "debt" you have.andrew_b6k wrote:I have a good credit record at the moment, will this whole 'tarting' thing adversely affect that?0 -
The other (0%) card company don't know what balance you have on the Egg Money card at the moment. When you ask them to transfer £*K balance from Egg they just pay this ammount (£*K) to Egg. As a result you owe this amount to the new CC company (have £*K balance on 0% card) and have the same positive balance on your Egg Money card. As simple as that ...andrew_b6k wrote:...This is the bit I don't understand. I'll have a zero balance on the egg money card as it's a new card and I haven't spent any money on it, how does the £0 balance get transferred over and suddenly become a credit in the egg money account?0 -
grumbler wrote:The other (0%) card company don't know what balance you have on the Egg Money card at the moment. When you ask them to transfer £*K balance from Egg they just pay this ammount (£*K) to Egg. As a result you owe this amount to the new CC company (have £*K balance on 0% card) and have the same positive balance on your Egg Money card. As simple as that ...
thanks, that's cleared it up.
it doesn't sound too legit to me, think I might stay out of this one. I knew there was no such thing as a free lunch.0 -
1000s of us do this, you have nothing to lose ...andrew_b6k wrote:...it doesn't sound too legit to me, think I might stay out of this one. I knew there was no such thing as a free lunch.0 -
grumbler wrote:1000s of us do this, you have nothing to lose ...
Yeah, the problem is let's say I go to Lloyds and get their 9 months cashback card, then tell them I owe £3000 on egg money. I can't fathom how they don't ask for proof of this 'debt' before just paying £3000 into my egg money account, especially when they must be aware of this whole stoozing thing.
My main concern is that telling them you owe £3000 could be constituted as fraud.0 -
When I applied for my Lloyds TSB card, 5 weeks after I received my Egg Money card I told Loyds that I wanted to do a balance transfer of £3000. I have no problems with that. I did not say "I have a £3000 negative balance on my Egg Money card", that would be lying, just that I wanted to do a balance transfer. But I do see your point, but I don't consider it fraud.
I was declined for the Lloyds TSB CC btw, and next time I apply for a credit card I won't tell them that I want to do a balance transfer with it on the application form. That part is still a bit of a grey area. I don't think anybody on this forum knows what is best, to mention the balance transfer on the application form or not. All stoozers will have their own theory, like I am still testing mine. With little success so far I have to say.Money in longest works hardest0 -
LloydsTSB define a balance transfer as...PokerPortal wrote:When I applied for my Lloyds TSB card, 5 weeks after I received my Egg Money card I told Loyds that I wanted to do a balance transfer of £3000. I have no problems with that. I did not say "I have a £3000 negative balance on my Egg Money card", that would be lying, just that I wanted to do a balance transfer. But I do see your point, but I don't consider it fraud.
As you don't have a "debt that you owe", you will certainly contravene the T&C's and very possibly commit fraud by making your request.“Balance Transfer”: a transfer to us of a debt (minimum £100 or another amount we tell you) that you owe another lender.
Martin Lewis highlights this fact in his "middle route" article, and there was a big debate over on the stoozing website recently on this issue.0 -
This I would not recommend either, for the reasons given above. However as you cannot transfer amounts of less than £100 by balance transfer request there must be a legitimate case for calling Egg and saying that a credit balance of £60 [say] you just want to clear because you want to use the EM card just for cashback on purchases. [Does anyone know if they only process requests of more than £100 over the phone anyway?] The alternative to removing a credit balance is ATM withdrawal, but you must not go past zero and can only withdraw in £10 mulitples. There is no cashback with this of course.andrew_b6k wrote:I'm also planning to transfer £10,000 savings into the egg money, and get 2% for transferring it out as mentioned on another thread on here. Do you think both stoozing and taking advantage of the 2% is a bad idea, as I'd like to keep the card long-term......under construction.... COVID is a [discontinued] scam0 -
Virgin's minimum BT is £25 - not sure if this is the same with all MBNA cards though?Milarky wrote:...as you cannot transfer amounts of less than £100 by balance transfer request...
T&C's say you must ring them to make a BACS transfer withdrawal. Don't think it states a figure of £100 anywhere. I believe you can do a BT from your current account online - just as Egg Green.Milarky wrote:[Does anyone know if they only process requests of more than £100 over the phone anyway?]0 -
OK, so you move £xK out of the receiving account to make a debt in it. Then you balance transfer, then you move money back into the original account.YorkshireBoy wrote:LloydsTSB define a balance transfer as...
As you don't have a "debt that you owe", you will certainly contravene the T&C's and very possibly commit fraud by making your request.
Martin Lewis highlights this fact in his "middle route" article, and there was a big debate over on the stoozing website recently on this issue.Happy chappy0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.8K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.8K Work, Benefits & Business
- 598.6K Mortgages, Homes & Bills
- 176.8K Life & Family
- 257K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards