Super Balance Transfer?

sillystudent_2

Hi, everyone, was hoping you could give me some advice on this

Want to pay off a high-interest overdraft (£400) and have a Nationwide Gold Card that is 0% BT for 9 months. Problem is, you can't do super balance transfers with it. However, I also have an Egg Money Card with a £500 limit - I could do a super transfer with this, but the interest rate's 19.9% which is more than the overdraft!!

So my thinking was this - because Egg Money allows you to have a positive balance, could I not simply do a £400 BT from my Nationwide card to Egg money (since its a credit card) which will put me £400 in credit on Egg (nothing's on it atm.) I can then just pay that £400 into my current account, thus paying off my overdraft - and have that debt on 0% for 9 months on my Nationwide card.

What do you reckon, guys, should this plan work?

YorkshireBoy

sillystudent wrote: »

What do you reckon, guys, should this plan work?

I reckon you have everything in hand.

Just be sure not to create a negative balance when you do the balance transfer or BACS transfer, whichever you decide to do.

Be especially careful not to use the Egg Money card for purchases until the 'muling' is complete and the transaction is posted to your account.

normanmark

Just ensure you don't purchase on your Nationwide card until you've paid off the balance transfer amount as you'll lose your 0% offer

YorkshireBoy

normanmark wrote: »

Just ensure you don't purchase on your Nationwide card until you've paid off the balance transfer amount as you'll lose your 0% offer

The Nationwide card has a favourable order of payments though doesn't it?

Purchases are OK, so long as they're paid off in full on each statement...aren't they?

normanmark

YorkshireBoy wrote: »

The Nationwide card has a favourable order of payments though doesn't it?

Purchases are OK, so long as they're paid off in full on each statement...aren't they?

It does have a favourable order of payments, but its something a friend actually did & was advised by the Nationwide Credit Card side that it invalidates the offer. In all honesty i'm not 100% sure, it would be worth clarifying with themselves, but like Martin advises so many times, don't mix the BT's with the purchases. I wouldn't like to leave the risk to any card company.

sillystudent_2

Thanks for all your replies so far guys

Just to clarify, its 0% on all BTs and purchases for 9 months (got it a couple of weeks ago) and I have around £200 worth of purchases on the card atm - will it be alright if I BT with this on and then just pay off the whole £600 in a few months time?

YorkshireBoy

sillystudent wrote: »

Just to clarify, its 0% on all BTs and purchases for 9 months (got it a couple of weeks ago)

Are you sure? I thought the card was 13 months on BT's and 3 months on purchases. It changed recently though, but I think the previous deal was 10 months on BT's and 3 months on purchases.

Or maybe they've given you a special 'student' deal?

and I have around £200 worth of purchases on the card atm - will it be alright if I BT with this on and then just pay off the whole £600 in a few months time?

Yes, if you're right. Possibly not, if my suspicions are correct.

tetley

you could try the virgin credit card,ive just got one and you can transfer any amount from anywhere/to anywhere,you can use it to pay off loans,pay bills ,balance transfers,pay money into your currant account/savings account.
its better than the egg card,thats why ive changed.
0% interest for 18 months,worth a look

NickX

normanmark wrote: »

It does have a favourable order of payments, but its something a friend actually did & was advised by the Nationwide Credit Card side that it invalidates the offer.

I have heard of spending on a Balance Transfer card causing those purchases to become trapped accruing interest until the balance is settled in full. However, I have never heard of making purchases invalidating the 0% rate all together. I don't know for sure, but I suspect your friend breached the Terms and Conditions in some other way.

If the Balance Transfer promotion and the Purchases promotion are for identical periods of time, then it is ok to spend on a Balance Transfer card within the Credit Limit. Also if the allocation of payments pays off the most expensive debt first, then this should be ok but I would say be careful, don't take my word for it, check your own Terms and Conditions and if there is any doubt ask the Card Provider first.