advice needed please - getting cash from 0% credit cards

NickX

noomski wrote: »

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?

No, I think you are getting confused because Egg have 2 credit card products on the market :

(a) The standard Egg Card works as a normal Credit Card and will offer a 0% period (15 months at present) on Balance Transfers or Super Balance Transfers (where the funds go to your Bank Account).

(b) Egg Money Card which is a completely different animal. There is NO promotional period, but they allow positive balances. Because of the positive balance facility it is very popular for use as a mule to transfer funds from another credit card which does have a 0% Balance Transfer promotion.

If you are going for a single card route, go for standard Egg for the 0% promotion on Super Balance Transfers, or find a 0% Purchases deal (such as Capital One) to buy the car directly on the card.

Hope this makes sense.

YorkshireBoy

noomski,

You're missing some key points. Read these two articles and see if it clicks...

http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards#MBNA (the standard SBT route I mentioned earlier for the Virgin card)


http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards#trick (the Egg Money card trick, using Egg Money as a mule card and another 0% on BT card [eg Capital One, or Ulster/Abbey if you want it totally fee-free] as a 'donor' card).

Tell us you now understand?

noomski

Ok,

I've read 'em both and this is what I think I need to do.

I'll get the Capital One Platinum card which has 0% on balances transfers and purchases. Then if I find the motor I want at a dealership that accepts card payments I'll simply use the card and then spend the 0% period to pay it off in full before it runs out therefore paying no interest on the £5000.

However if I find a private seller that wants cash I'll use the Egg Money card as a mule card and get the Capital One card to transfer the £5000 to the Egg Money card. From there I transfer it to my current account and I withdraw the cash from the branch and pay the seller with cash. I'm then In debt with Capital One to the tune of £5000 and I'll pay it off before the 0% introductory rate runs out.


(sorry for being a bit thick, I'm a bit new to this :undecided ).

NickX

That sounds perfect :beer:

I think you've sussed it.

Just watch for Capital One, they have a habit of sending out a card different to the one that you apply for. Many people here applied for the 15 month card only to be sent a 9 month card.

On their website is a criteria for the "excellent" credit rating that they require. If you can meet all these criteria you will stand a good chance of getting the 15 month card, but its not guaranteed.

YorkshireBoy

noomski wrote: »

Then if I find the motor I want at a dealership that accepts card payments I'll simply use the card...

However if I find a private seller that wants cash I'll use the Egg Money card as a mule card and get the Capital One card to transfer the £5000 to the Egg Money card.

There's a third option, that covers both bases...

Take out the Virgin card and pay the cash straight into your current account. Then, as soon as you see your dream motor you already have cash on the hip so to speak.

Yes, there will be a 2.98% fee, but the dealer would probably want to charge you this for using Capital One...and don't forget the £25 minimum payments on the Virgin card allow you to make a little savings interest along the way.

(sorry for being a bit thick, I'm a bit new to this :undecided ).

You're not thick. Everyone (fairly new to cards) takes a couple of reads to grasp the concept.

NickX

As you say you are fairly new to this, I am having doubts that Capital One will give you the full 15 month card - please don't take offence, but they are being very picky at present.

You probably have a better chance of getting the Virgin card to be honest, and they are run by MBNA who are not known for sending out cards with different deals to the one that you applied for.

noomski

Phew, if I'd got it wrong again that time I'd have hung my head in shame.:rotfl:

Just one last thing, I noticed through my research that there is a balance transfer fee of 3% on the capital one card. So this means I'll pay £150 quid on the transfer to Egg if i need the cash for a private seller right?

NickX

noomski wrote: »

Just one last thing, I noticed through my research that there is a balance transfer fee of 3% on the capital one card. So this means I'll pay £150 quid on the transfer to Egg if i need the cash for a private seller right?

Yes but Egg Money do not charge for transferring a positive balance to your Bank Account.

Also if you pay the car dealer directly on a 0% purchases card, they may well want to charge you a percentage to cover their merchant fee.

noomski

So I should transfer the cash through to my current account regardless of whether they do take cards to avoid their merchant fee?

YorkshireBoy

noomski wrote: »

So I should transfer the cash through to my current account regardless of whether they do take cards to avoid their merchant fee?

I think you may have missed post #16.