Revenge! Make free cash from credit cards/MoneySavingExpert.com Discussion

Chadsman

Egg Money (rather than the Egg card) does not currently charge a SBT fee.

stphnstevey

I wasn't sure if this was true or not as there frontpage says a BT fee was payable - does this apply to SBT's?

Paul_Herring

stphnstevey wrote:

I wasn't sure if this was true or not as there frontpage says a BT fee was payable - does this apply to SBT's?

There is no BT fee payable on Egg Money, however interest is payable on any negative balance on Egg Money. i.e. the way to use it is to transfer money 'from' Egg Money to your other card (whichever it happens to be, causing a positive balance on Egg Money, a negative balance on the other card) then SBT (charge free) 'to' Egg Money from where ever you want it to go. Or leave it on Egg Money - any positive balances there earn interest.

ceegee

MBNA have just sent me some credit card cheques with the "advice" to "pay a cheque into your bank account for a cash boost". Are they inviting me to stooze? It sounds really tempting but I haven't done it before. I have no debts apart from tiddly old mortgage and my cc bill is paid off in full by dd each month....cashback, nice little earner etc.

There would be a handling fee of 2% (£3 min /no max). No interest would be charged until April 2007. They have also upped my credit limit to £5ooo (specially!)

So, if I took them up on their kind offer and put, say, £2500 into an account earning, say 5%, does that mean that I would effectively be earning 3% on their money until next April?

schiff

ceegee

Me again!

I have prominent notes everywhere never to use CC cheques - because of the swingeing charges and the complications. However with the offer you have of 0% interest, it might be a different matter, even with the 2% charge. I trust you read all the conditions very carefully! The reason I ask is the potential interaction between your CC cheque and the other items on your account - purchases and Balance Transfers (if you have done one on the same account) - if any.
There are serious warnings about this this elsewhere on MSE and it's usually advisable not to 'mix' different aspects on the same account. Maybe check again - hope it's OK!

schiff

ceegee

hello again, schiff. We must stop meeting like this!;)

This one does sound good, but I am such a very cautious person and don't want to take any chances. This will get my very close scrutiny, fine toothed comb in hand!

schiff

ceegee

Don't stop being cautious!

schiff

dazed

ceegee wrote:

MBNA have just sent me some credit card cheques with the "advice" to "pay a cheque into your bank account for a cash boost". Are they inviting me to stooze? It sounds really tempting but I haven't done it before. I have no debts apart from tiddly old mortgage and my cc bill is paid off in full by dd each month....cashback, nice little earner etc.

There would be a handling fee of 2% (£3 min /no max). No interest would be charged until April 2007. They have also upped my credit limit to £5ooo (specially!)

So, if I took them up on their kind offer and put, say, £2500 into an account earning, say 5%, does that mean that I would effectively be earning 3% on their money until next April?

I would just call up to confirm the date that the credit card cheque promo rate expires and also see if it can be extended if they complete the transfer there and then over the phone. Call 0800 7831116 retentions team and see if they can extend it. AFAIK they are not being targetted on yield rates (% they give the cash at) so they should be able to (depending on what the system lets them) agree to extend it if you have a clear card or maybe offer a lower rate for a longer term.

hth

lipidicman

ceegee wrote:

So, if I took them up on their kind offer and put, say, £2500 into an account earning, say 5%, does that mean that I would effectively be earning 3% on their money until next April?

Careful, April is not 12 months away, it is 9 (0.75 years)
Also assuming Tax at 20%
and a rate of 4.75%

I make the return (4.75%*0.75*.8)-2% = 0.85%

£2500 * 0.0085 = £21.25

which may, or may not be worth it to you

if you dont pay tax you'll make £39.06
and if you are higher rate it is £3.43

schiff

Just applied for the Barclaycard offering a BT @ 0% for 10 months (no fee), if you apply through the branch.

Read the leaflet very carefully but towards the end I noticed it said "Offer close date 5 July". Checked with the adviser (described as manager on his card!) who told me they believed it still applied that applications would be entertained. I put a note in to that effect with my application. We'll see if it works.

So I filled my form in and sent it off. One question intrigued me and I don't think I've ever been asked this before (I have 8 CCs !!). "How much outstanding credit do you have (excluding mortgages and secured loans)?".
I assumed this meant how much do I owe on CCs and loans so I put the correct figure. It is 70% of my income. Because of the way the form is laid out however, Barclays don't know that I have the equivalent sum and more in instant access bank accounts and they don't know I owe nothing on my house. So how can they realistically appraise my credit worthiness for the Barclaycard?

I never get more than a £3000 credit limit and the last one, with GE just recently, only half of that. I can get round it but what intrigues me is that I read so often of people on MSE with massive stoozing pots. Figures like 30 and 40 thousand. If the CC companies only look at capital debt and gross annual income, how on earth do these people get new cards, let alone cards with a large enough credit limit to cope with their (obviously) massive roll-overs?

I find this totally mystifying and would appreciate somebody explaining it to me! Thanks in advance.

cheers schiff