Best Balance Transfers / MoneySavingExpert.com discussion area

Former_MSE_Dan · 3 December 2005 at 2:49AM

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This discussion relates to the fully updated Best Balance Transfers article. Click on the following links for the Quick Read and Extended Versions

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Mike_Jersey · 7 January 2006 at 1:01PM

As an existing Patinum card holder with a zero balance and good standing just tried to take advantage of 4.9% life of balance offer only to be told that there is no such offer but I can have 2.9% for 6 months. Didn't even get round to how much I wanted.

grumbler · 7 January 2006 at 7:20PM

Mike_Jersey wrote:

...4.9% life of balance offer only to be told that there is no such offer ....

As most of other others, this one is for new costomers only. All CC companies do this to attract new customers and usually bear losses as a result of this offers hoping to recoup these losses later. Why on earth will they reduce your standard APR to 4.9% if you already are their customer? Try other cards mentioned in the article.

raymac31 · 9 January 2006 at 8:46PM

I'm not sure if this is in the right place but here goes. I have just applied for the Amex Platinum card with the life of balance rate of 4.9% , as Martin has been telling the nation on tv and radio. As I was reading the t&cs I read that that rate was only available for balance transfers completed within the first 6 months. After that the rate goes up to 9.9% . This is not a problem to me but I wondered how many people are aware of this and also that they allow 12 balance transfers in a year. Apologies again if this has been mentioned in a previous forum.

Flloydrick · 9 January 2006 at 10:41PM

I just applied for the Amex Platinum balance transfer at 4.9% and printed of the application to sign. Clause 5.1 reads "The total charge for credit is £71.12. This consists entirely of interest and is based on the sum of £1,500 being borrowed at the start of the agreement and repaid in equal monthly instalments over the period of one year at the standard interest rate for purchases set out in condition 4.1 (i.e. 8.1%) and does not take into account any promotional rate that we may apply"

I am somewhat baffled as to why this was inserted can anyone enlighten me?

YorkshireBoy · 9 January 2006 at 11:03PM

Flloydrick wrote:

I just applied for the Amex Platinum balance transfer at 4.9% and printed of the application to sign. Clause 5.1 reads "The total charge for credit is £71.12. This consists entirely of interest and is based on the sum of £1,500 being borrowed at the start of the agreement and repaid in equal monthly instalments over the period of one year at the standard interest rate for purchases set out in condition 4.1 (i.e. 8.1%) and does not take into account any promotional rate that we may apply"

I am somewhat baffled as to why this was inserted can anyone enlighten me?

I wish I had a pound for every time this question has been asked.

They give you a £1,500 credit limit.
You purchase one single item for £1,500 with the card (and don't use it again).
You repay it by making 12 equal payments over a year.
You repay a total of £1,571.12 of which £71.12 is interest.
Therefore the 'total charge for credit' is £71.12

All this assumes there is no promotional offer currently running and is based on the lenders standard APR rate for purchases.

All lenders have to quote this figure now, so that different deals can be compared easily.

[Deleted User] · 11 January 2006 at 6:34PM

I've just been accepted for an egg card which I was planning to use as a mule and for its anniversary offer, as the 2% fee for intro balance transfers put me off. However, my limit is 10k to am I right in thinking I could SBT 9k out say and invest for 8 months at say 4.85% (cahoot savings rate) and just pay the max £50 transfer fee. That seems to leave you £182.80 in profit (8/12*.0485*9000*0.8 for tax less 50 fee). Is my logic correct - hadn't planned on this but seems like an opportunity too good to miss?

grumbler · 11 January 2006 at 9:52PM

anactuary wrote:

....my limit is 10k to am I right in thinking I could SBT 9k out

I'd transfer maximum 10K (OK, £9950 as I don't know how they treat BT fee)

... and invest for 8 months

Even more than 8 months. Untill 1 October 2006 - if you don't use it for purchases (in this case you start paying interest on part of the balance after 1 July).

at say 4.85% (cahoot savings rate) and just pay the max £50 transfer fee. That seems to leave you £182.80 in profit (8/12*.0485*9000*0.8 for tax less 50 fee).

A little less if you take 2% monthly payments into account.

Penny-Pincher!! · 11 January 2006 at 10:02PM

Hi

Barclaycard called me a few days back. Have a Platinum Visa with zero balance and £9k limit...havent used it for ages. Said I had been thinking about closing the account and they offered me a 4.9% LOB with NO BT fees :eek: . Explained that my current 0% finishes next month and they have left it open till the end of february

Considering the current 0% deal is on my Skycard which is owned by BC...I think it was a pretty good deal

Called Halifax too and they offered 4.9% LOB but with a 2% fee capped at £50, but obviously BC is better value.

Have applied though for another 0% card..HSBC with NO fees on BT's for 9 months. If i dont get this, I will probably go ahead with the 4.9% LOB, as I dont want to risk to many searches IYKWIM.

Is this a good deal?

Thanks so much..great thread BTW.

Penny-Pincher!!
xxx

YorkshireBoy · 11 January 2006 at 10:10PM

Penny-Pincher!! wrote:

HSBC with NO fees on BT's for 9 months.

You only have 30 days in which to make your BT's, although you do get 9 months 0% from the date of the transfer - not the date of account opening.

However, if you use the card for purchases, then the 0% end date for these is 9 months after account opening. Should you make a purchase, then you will have to clear your balance by the earlier 0% end date - otherwise you will pay interest (on the purchases balance) for the period between the first 0% end date and the 2nd 0% end date (ie, for up to 30 days depending on when you made your BT).

YorkshireBoy · 11 January 2006 at 10:11PM

grumbler wrote:

I'd transfer maximum 10K (OK, £9950 as I don't know how they treat BT fee)

They'll only let you do £9,500 grumbler, due to their 95% rule.

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