Best Balance Transfers / MoneySavingExpert.com discussion area

Gabrielle_Jo

Hi, first time poster here.

I thought I had judiciously followed Martin's advice when getting my partner to make a balance transfer from his Halifax credit card (about 18% APR) to British Airways American Express (about 5% APR) as a best buy life of balance card.

However, the Halifax minimum payment had been £80 per month. The BA AmEX minimum payment is £140 per month and my other half is not very pleased as I have increased the amount of money he is expected to pay out per month. Money he hasn't got, they have already phoned him demanding payments that are behind and fined him £25 for a missed payment. Surely the minimum expected payment needs to be taken into account when considering making a balance transfer? Did I miss something about this in Martin's advice about life of balance transfers?

Is there a way to get BA AmEx to lower the minimum payment without sacrificing the low interest rate?
Thanks is anyone has any advice.

grumbler

Hi

Gabrielle_Jo wrote:

Surely the minimum expected payment needs to be taken into account when considering making a balance transfer?

Surely: Danger! Avoid Minimum Repayments
You figures don't match: £80/2%=£4000; £140/3%=£4667. If, for example, the balance is about £4450, then min payments to Halifax was about £89 (not £80) and the new min payment is £133.5 (not £140).

Now see http://www.whatsthecost.com/creditCard.aspx (I used £4450 figure).
With min payments to Halifax it would take you 634 months :eek: to clear the debt and would cost you £11883 :eek: in interest.

With minimum payments to Amex (4.9% APR) it will take only :rolleyes: 161 months and will cost only :rolleyes: £664.

Compare these figures and think :think: a little. £44.50 difference in monthly payments (initial, decreasing every month; all this is repayment, not interest) saves you £11200 (!) in interest ...

Is there a way to get BA AmEx to lower the minimum payment without sacrificing the low interest rate?

Unfortunately (or fortunately - see above), no, although you can try switching to Morgan Stanley platinum (5.9%APR LOB, 2% min payment) or IF (4.95% APR LOB, 2%). I wouldn't recommend this.

yeslek

aint that a pyramid scheme?

nmartin

don't know if you all know this but I just got an email from Egg about my Anniv and they are now charging 2.5% for the privlge. Anniv BT is now not exactly attractive to me. Here is the exact quote from my email:

As a special anniversary 'thank you' you'll get 0% interest fixed until 1 October 2006 on any balances you transfer throughout May 2006. For each balance transfer, there is a 2.5% handling fee.

Big bummer

schiff

Mr & Mrs Stumpy

Oh dear. Really feel for you but if you are honest Sevilla are a very good side.
With Boro's defence giving them so much time and space and not playing tight up against such talented players, I'm surprised they have got this far really.

Could it be therapeutic for Mr S to go with you tomorrow to choose a new carpet?

Sorry for OT - back to financial matters.

allymac_2

A word of warning - I thought I was an experienced and clever credit card tart although disappointed that the companies have now caught on and are charging balance transfer fees but, hey ho, that's life. Still seemed like a good idea to transer my fee of £2,700 from Amazon(interest-free period has just run out) to a new NSPCC card which I got today (interest-free for 9 mths with £50 transfer fee). However, when I rang to make the BT I was informed that NSPCC are owned by Bank of Scotland, Amazon are owned by Halifax and :mad: both are owned by the same mother company hence I was unable to make the BT and card is completely useless. Panic :eek: now I haven't got time to sort anything else out and will have to pay the interest for the next month anyway! Now on the lookout, yet again, for a card but how do I know who the cards are owned by?

grumbler

allymac wrote:

how do I know who the cards are owned by?

See:
http://www.stoozing.com/cards.htm
http://www.stoozing.com/0fees.htm (hoover over card names for supplier)
List of Credit Card Providers

Allso experienced and clever credit card tart should have Egg Money card. It cold be very handy as an intermediate card in such situations: The Middle Route

Stumpy

schiff wrote:

Mr & Mrs Stumpy

Oh dear. Really feel for you but if you are honest Sevilla are a very good side.
With Boro's defence giving them so much time and space and not playing tight up against such talented players, I'm surprised they have got this far really.

Could it be therapeutic for Mr S to go with you tomorrow to choose a new carpet?

Sorry for OT - back to financial matters.

Thanks schiff - no doubt I jinxed it by watching this match, after not watching the last couple :rolleyes: He's not going to have time to go shopping tho - cricket starts apparently!

sharon1953

allymac wrote:

A word of warning - I thought I was an experienced and clever credit card tart although disappointed that the companies have now caught on and are charging balance transfer fees but, hey ho, that's life. Still seemed like a good idea to transer my fee of £2,700 from Amazon(interest-free period has just run out) to a new NSPCC card which I got today (interest-free for 9 mths with £50 transfer fee). However, when I rang to make the BT I was informed that NSPCC are owned by Bank of Scotland, Amazon are owned by Halifax and :mad: both are owned by the same mother company hence I was unable to make the BT and card is completely useless. Panic :eek: now I haven't got time to sort anything else out and will have to pay the interest for the next month anyway! Now on the lookout, yet again, for a card but how do I know who the cards are owned by?

I also left it late to do a BT, so checked the ones out on this site as usual, but for some reason the MBNA Platinum Plus card isn't mentioned in the list, (found it in a google search) yet it's offering 9 months, 0% and no fee! and MBNA is one of the cards that offers a high credit limit. I've applied online and can't see any catches, so fingers crossed!

YorkshireBoy

sharon1953 wrote:

...for some reason the MBNA Platinum Plus card isn't mentioned in the list...

It isn't mentioned in the list because it charges a 2% uncapped BT fee.

I've applied online and can't see any catches...

Here are the 'catches'...

Summary Box
Other charges:
2% handling fee (min.£3) on: credit card cheques and balance transfers.

Terms & Conditions
2 Other financial information
<...snip...>
2c We will charge the following handling fees. For all balance transfers and cheque transactions, 2% of the amount of each transaction (minimum £3).