advice needed please - getting cash from 0% credit cards

noomski

Hi, I've just been reading this article and have set up the egg money card which will be arriving shortly.

However I'm just a little unsure about the creit card I want to go with it. I'm looking at pulling out £5000 from the card to put in my current account to get a new car. I am fully able to meet the payments for a year so I figured that this will be the cheapest way of aquiring the cash.

Now i've searched around a bit and stumbled accross www.moneysupermarket.com and checked out their coparison of credit cards. The result they gave me was the Capital One Platinum card.

I'd just like to know if anyone can tell me any reason why this card might not be suitable or suggest anything better.

YorkshireBoy

noomski wrote: »

I'd just like to know if anyone can tell me any reason why this card might not be suitable...

It charges a 3% BT fee for 14-15 months 0%. Other cards charge less...some don't charge a BT fee at all (although the duration is shorter).

You might not have the "excellent credit history" demanded (and defined) by Capital One, so they could send you a 6/7 month card instead...but still charge you the 3% BT fee.

They require a 3% minimum payment (£150 on £5,000).

...or suggest anything better.

If you want to go fee-free (but for 6 months, and then swap again later), try Abbey/Ulster (although Ulster are tight with limits, and Abbey are not known as [sh]abbey for nothing in the field of customer service).

If you're happy to pay the fee, then consider Virgin. 2.98% BT fee for the same 15 months, but minimum payments are only £25 a month from month 2. You could then keep the rest in a savings account and make a little interest along the way. EDIT: Since Virgin will pay the money straight into your current account (still at 0%), you won't need to use Egg Money...but do keep the Egg Money card as it's very useful.

Capital One have another BT card, this time with 0% for 15/16 months (but without the accompanying 0% on purchases for the same duration).

jdavtz

noomski wrote: »

[...]have set up the egg money card[...]

[STRIKE]I don't think there's any 0% deal on the Egg Money card. The Egg Card has the 14-15 month offer.[/STRIKE]

Sorry I misread the original post.

YorkshireBoy has (as usual) given a great answer.

Catseyes777

Try stoozing.com then click on 0% credit cards - there is a very simple list that shows you quickly most of what there is to know as well as the balance transfer fees so you can pick the one that's best for your circumstances.

Thinking of doing the same myself but to overpay on the mortgage.

clio

why dont egg money do 0% deals??

NickX

clio wrote: »

why dont egg money do 0% deals??

Egg Money is quite a unique card. It is the only card that is not only designed for positive balances, but will actually pay interest on positive balances.

You are also able to transfer funds from Egg Money direct to your Bank Account.

However, because of its unique features, it does not offer some of the features that we have become accustomed to with regular credit cards, in particular 0% promotions.

Whatsmore Egg do offer 0% promotions with their standard Egg Card so they do not need to offer these with Egg Money aswell.

clio

Cheers Nick matey for answering that query:)

Moggles_2

Catseyes777 wrote: »

Try stoozing.com then click on 0% credit cards - there is a very simple list that shows you quickly most of what there is to know as well as the balance transfer fees so you can pick the one that's best for your circumstances.

I agree. For a comprehensive list of 0% balance transfer cards, updated regularly and not influenced by advertising commissions, http://www.stoozing.com/0fees.htm (which is sponsored by Money Saving Expert) is hard to beat

noomski

Wow, thanks for the responses guys, that's some useful advice there.

I have been thinking a little more about this and I'm thinking that all I really need is the egg money card.

You see I don't have any other debt on any other cards to transfer and am not using my overdraft in my current account either.

So I'm thinking that if I get the Egg Money card and it has at least a £5000 limit I could use that card to pay for the car (if it's a dealership that accepts cards of course).

Or, if i find a private seller, I could transfer the £5000 to my current account and withdraw the cash to pay the seller.

As long as I'm making the minimum payments off the card each month I wont pay any interest. Is that right? I plan on paying off the balance fully over 12 months so will I end up paying any more than £5000?

I must admit I've never really needed a credit card and always saved up paid for everything I've ever bought up front. I think I'm probably being a bit thick, it's just that I'm feeling a bit suspect about buying a car on credit and worried that the Egg card will fleece me to the bone with some stealth interest rate that I just can't see at the moment.

Many thanks for your help,

Mike

NickX

noomski wrote: »

I have been thinking a little more about this and I'm thinking that all I really need is the egg money card.

You don't want just an Egg Money Card because there is no 0% promotion on Egg Money.

You need either a 0% Purchases card (such as Capital One Platinum) which you could use to purchase the car, or a card that allows you to transfer funds to your Bank Account (Super Balance Transfer) at 0%.

Super Balance Transfer cards include Egg (Standard Egg not Egg Money), Post Office Card and any card administered by MBNA (including the Virgin range of cards).

noomski

Thanks NickX,

So what you're saying is that even if I pay off more than the minimum each month on the Egg card they'll still be charging me interest?