Balance Transfer Fees

nickbrat

Hello

Advice needed please:

If i obtain a new 0% credit card and then transfer 3 store cards debts to it will i be charged for example a 3% charge for each store card i pay off?

And

Are the fees taken off the credit card debt? what i mean by this is are any required fees simply added to the Credit Cards outstanding balance? So i don't have to find the fees upfront myself.

And

I owe just under £6000 on my car and i pay the finance through Peugeot finance. Would it make any sense to transfer this debt to a credit card and then become a bit of a card tart every 12 months or so until the debt goes?

I realise these questions are probably simple for most of you but i haven't a clue what i'm doing.

Nick

CLAPTON

yes you will pay 3% on each transfer


the transfer fee is added to the CC debt


maybe... if you have a high enough credit limit,
and if you have a way of getting the money from the CC to the Peugot Finance (only a few CCs will allow BT from a loan or will allow BT to your current a/c )
and if you're confident that you will in practice be able to find suitable 0% CC in a years time.

YorkshireBoy

nickbrat wrote: »

If i obtain a new 0% credit card and then transfer 3 store cards debts to it will i be charged for example a 3% charge for each store card i pay off?

Yes, but be aware there are some storecards that you won't be able to pay off with a BT, Argos being one of them.

Are the fees taken off the credit card debt? what i mean by this is are any required fees simply added to the Credit Cards outstanding balance? So i don't have to find the fees upfront myself.

Depends on which card you choose. For example, MBNA demand the fee with the first minimum payment, whereas others add it to the balance.

I owe just under £6000 on my car and i pay the finance through Peugeot finance. Would it make any sense to transfer this debt to a credit card and then become a bit of a card tart every 12 months or so until the debt goes?

Possibly, and then again, possibly not.

Pros: Could be cheaper.

Cons: What if deals dry up? The loan would then revert to circa 15.9% APR (or even higher)...very likely more than you're paying now. If you miss a payment you'll lose your promotional rate...same outcome as above.

What about a LOB card (using the Egg Money Card Trick) for peace of mind?

nickbrat

YorkshireBoy wrote: »

What about a LOB card (using the Egg Money Card Trick) for peace of mind?

Thanks for that, What is an LOB card and simply what is the Egg Money Card Trick?

YorkshireBoy

nickbrat wrote: »

Thanks for that, What is an LOB card and simply what is the Egg Money Card Trick?

LOB = life of balance. It means a low rate (typically 4.9-5.9% APR) for life, so no swapping 0% deals every year.

Click the link in my post to see how the Egg Money Card Trick works.