Cut Price Plastic Loan - MoneySavingExpert.com discussion

Former_MSE_Dan

This thread is specifically to discuss the content of the

[url="http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1094822880,81886,]Cut Price Plastic Loans Article[/url]

To discuss or ask a question about the article: click reply

LAURENTFIGNON

I'm not sure I'm in the correct section but I am just buying a house and need to raise about £9000 for stamp duty, the deposit is covered but I could not include the stamp duty on the mortgage. I was wondering whether there was a way I could do this with a 0% credit card loan? If anyone can help I would be most greatfull.

grumbler

LAURENTFIGNON wrote:

...I was wondering whether there was a way I could do this with a 0% credit card loan?

This is the discussion thread for the Cut Price Plastic Loan article.
Have you read the article before asking your question? I think no, because it is about cards with low Life Of Balance interest rate, not about 0% cards.
About 0% cards read:
The Best Balance Transfers: cut the cost of existing credit card debts
What is a Super Balance Transfer?
REVENGE! Make Free Cash from Credit Cards

However, I don't think that you are able to repay £9K during 6-9 months after which interest rate reverts to standard high rate. It could be difficult for you to switch this debt to another 0% cards every 6-9 months.

I think it is still worth reading the article being discussed here and thinking about using cards with low Life Of Balance interest rate (stright away or when 0% offer ends). However, be aware that such cards are known to offer lower credit limits than normal cards.

Also it takes time to get credit cards and you can never be sure that your application will be accepted and you will get the credit limit you need. This depends on your credit history. Don't rely solely on this way of getting £9K.

lui7574

Can anyone offer some advice? I decided to take the cut price plastic option to pay of a loan, I was accepted for the credit card with a low balance transfer APR and a high enough limit to settle the loan however when I applied for the Egg account to complete the transfer part as detailed in the article I was declined. I,ve contacted the credit card company to ask if they could settle the loan however they will not do this so basically stuck with the loan still.

Any advice on what to do next would be greatfully received.

Thanks,

Lui7574

Traceyjs

Hi
I am new to this site,and to this whole subject really, so please bear with me!!

I have successfully been using 0% balance transfer credit cards to replicate a loan for a car purchase and now want to follow Martin's advice to pay off an existing bank loan, using a life of balance transfer rate. I have an Egg card which I intend to use as a mule card. I have also successfully applied for the life of balance transfer card. However i can't get the amount of credit I need to make the transfer, despite having enough credit on my Egg 'mule' card. I contacted the LBT card company but they wont increase my credit limit (although will consider it in 6 months!)

Would it make sense to apply for a second LBT card and split the outstanding loan amount b/w the 2 LBT cards? Would this effect the amount of interest paid overall? Can't see anything around this scenario on Martin's site?

Also i notice that both the LBT card and the Egg card charge a BT fee? Is there any way around this?

ANY help/advice would be greatfully received?

Thanks
Tracey

grumbler

Welcome to MSE!

Traceyjs wrote:

..Would it make sense to apply for a second LBT card and split the outstanding loan amount b/w the 2 LBT cards?

Why not unless you have made a lot of applications recently?

Would this effect the amount of interest paid overall?

Generally no, although these cards have different interest rates and the second card rate can be slightly higher (or lower) than the first one.

Also i notice that both the LBT card and the Egg card charge a BT fee? Is there any way around this?

What 'LBT' card have you got? AFAIK majority of low LOB rate cards don't have a BT fee: see http://www.stoozing.com/0fees.htm - bottom of the list. Also, you can apply for Egg Money card (probably even without extra credit check for an existing Egg customer) and use it as a 'mule' instead of the Egg Card. Egg Money card doesn't charge for BTs or for transferring money directly to a current account.

novluap

hi, I am very new to all this although I have been moving money ('tarting') for some time.
my question is, as an existing M & S car holder I don't think the lifetime balance offer extends to me - but I do have an offer from halifax to do 0% on balance transfers and purchases for 9 months.
so if I do as martin suggests, get halifax to agree to the limit I need for the loan I have to pay off, then get an Egg Money card for the same amount. I can then get halifax to pay into egg money all that I need to pay the loan off.
I know I will end up with a large amount of money owing on the halifax card for only 9 months but can I then start to shop around to move that balance on to another 0% at the end of the period.
Does any of this make sense??

grumbler

Hi and welcome.
Yes, this makes sensce, but:

1. If you dont get Halifax to the limit you need, you can transfer part of the loan: Special Briefing: Didn’t get the credit limit you want – DON’T ‘screw them!’
2. You don't need the same credit limit with Egg Money. Any limit will do the job as this card will have a positive balance.
3. Don't forget about early redemption fee on your loan (if any).
4. Minimum payments on Halifax card (2%) could be higher than your current monthly payments on your loan.
5. Market of 0% credit cards is shrinking now and almost all such cards have the BT fee.

veryhappysaver

Hi there
I have just completed a very successful balance transfer to pay off my loan and secured a better rate!
Using Marks and Spencer and Sainsbury's bank credit cards,that had a life of balance transfer, i balance transferred money to Egg and then transferred the credit balance to my bank account and then voila!! got myself a cheap loan by paying off the loan i had at a really bad rate!
Thanks Martin, you're a star! It truly works!

Steve_B_8

Hi All,

Apologies for using my first post to ask a noddy question but I just have to be sure of what's being said before I commit myself financially...

The method talked about in the 'Cut Price Plastic Loans article', involving an Egg Card as an intermediary, is purely for getting cash at a lower rate to pay off an existing personal loan or other high interest debt isn't it?

I'm planning to buy a car outright on an existing credit card, transfer the entire balance to a low rate life of balance card and pay it off over a couple of years. It's as simple as that isn't it?! I can't see a catch (providing I'm approved for the LBT card with a high enough credit limit).

Sorry for the question but I confused myself by reading the article!

Steve

jennijenjenjen

Hi,
I'm a newbie here & have now been converted to a complete money saving maniac!

Martin, thanks I did your clever little shuffle with the M&S life balanace & Egg Money...It works!!!!

So pleased to finally get rid of expensive overdraft & credit card, after 3 yrs of living at the bottoms of my overdraft.

You are truly a genius...I definitely owe you a beer!:beer:
:T :T