Balance transfer jiggle

Arfhurdaly

I have a loan with a high interest rate 21% which i want to pay off. However, i was offered a good rate of 8.9% on balance transfer from my credit card company. I also have a credit card with the loan company too.

However, the credit card company will only accept "balance transfers" so they wont just pay it into my bank ac.

So how do i take advantage of this offer?

Arfhurdaly

NickX

You really need an Egg Money card (not to be confused with standard Egg Card).

Egg Money can be put into positive balance by transferring a fictional debt from Egg Money to your new card.

So your new card ends up with the debt at 0% and Egg Money is in credit to an equivalent amount (less Balance Transfer fee).

You can then transfer the funds direct from Egg Money to your Bank Account from where you can settle your loan. Egg Money do not charge for this transfer, but be careful not to go into debt on Egg Money otherwise you will be charged interest.

If you don't have Egg Money do you have any friends or family members that do and will allow you to use their card as a mule - maybe buy them a beer :beer: for doing you a favour.

Arfhurdaly

I have an egg card, not sure if its egg money though. Can i go positive on this card?

NickX

Arfhurdaly wrote: »

I have an egg card, not sure if its egg money though. Can i go positive on this card?

Hmmm, you could try it but its not designed for postivie balances and they may frown upon it. There are reports of the funds being returned to their source, or even the account being frozen upon suspicion of money laundering.

Also Egg will charge an additional BT fee.

However, if you already hold the Egg Card you stand a good chance of being accepted for Egg Money.

Arfhurdaly

So i have to apply to get an egg money card?

Also, why is it money laundering on other cards, but not egg money cards?

NickX

Arfhurdaly wrote: »

So i have to apply to get an egg money card?

Also, why is it money laundering on other cards, but not egg money cards?

Yes you will need to apply for Egg Money unless you can get a trustworthy friend to let you use theirs to move your funds onto for a temporary basis.

It is only Egg Money that specifically allows a positive balance, all other credit cards are designed for borrowing money, not for putting into credit.

Arfhurdaly

Thanks for your help. I think i have got my head around it. I applied for egg money card. Got 7.9% APR (i presume this is just spending, not cash advances). Seems to good to be true really.

NickX

Arfhurdaly wrote: »

Thanks for your help. I think i have got my head around it. I applied for egg money card. Got 7.9% APR (i presume this is just spending, not cash advances). Seems to good to be true really.

Congrats on getting the card :beer:

7.9% APR will be for spending, but with your plan to put it into credit and send the money to your Bank Account, you should not have to pay any interest as long as you keep the balance above or equal to zero.

Even better news is that whilst in credit they pay you interest - 4% gross I believe.

The stoozers love this card :j