Free Cash From Credit Cards Discussion Area

johnllew

1) A&L don't warn you at all on their statements when the 0% period will end.

Register for online access and you'll be able to see the end date there.

johnllew

I assumed A&L to be Alliance & Leicester, but when I looked at their site, I saw no mention of the £5 min payment, just the usual %.

Can you enlighten me?

From the T&Cs:

Monthly Minimum Payment: The lesser of:

- 2.25% of your balance (minimum £5) or

- charges for Payment Protection Cover plus interest and fees plus £5 or

- the balance, if this is less than £5.

This means that if you incur no fees or Payment Protection Cover and are on a 0% promotion, the monthly payment is just £5.

jonbrett

Cool. Thanks John.

hoyin

Ok .. I understand how it all works. Just waiting for my credit card(s).

I have one question though. How do I carry on this method of making money after the 9 months are up?

I take it I apply for another 0% card that allows a balance transfer to my bank account. But there does not seem to be that many about. What happens when I run out of credit cards?

Then should I cancel all my previously used cards?

What do you guys and girls do?

Grateful if you could help me.

deemy2004

Apply for new 0% cards, but have the cash at hand to repay the debt if your timing is off.

jonbrett

Oh I see, but there are only a limited number of cards you can get with 0% balance transfer.
Plus what is stopping you getting all the cards in the first place? Therefore having a larger sum over the 9 months and gaining more interest in a shorter time?

Martin says that there are over FIFTY 0% cards out there! What will limit you is the amount of credit cards you're allowed to have at one time, or the amount you think you can manage.

We all hope there'll be more 0% cards when the time runs out on our existing cards!

That's why, maybe, premium bonds for example, aren't a good idea as you may need the money to hand if you are unable to get another 0% card or your timing is out (applications delayed/refused etc).

Egg gives a further 5-month 0% period 12 months after you first received it (7 months after the previous 0% period ended), but all other cards need to be cancelled as soon as the 0% runs out so you can re-apply for them when the T&Cs allow you to. This way you might be able to recycle them.

hoyin

Jonbrett,

Many thanks for reply. You have answered all my questions.

Thank you!

hoyin

Got another question.

Though I don't have to pay for the SBT I do in the beginning when I open the account. Any additional SBTs I do during the 9month period will be charged a handling fee.

I will therefore have to pay the minimum charge so that I don't pay interest every month which is 2.25% so if I have a credit of £5000, of which I can only SBT 98% of, I therefore have to reapy £110 roughly each month.

I therefore over the 9 months have to repay £992.25 and therefore lose the interest on this.

Bit of a bummer really unless I find some cards where the minimum payment is always £5.

jonbrett

My understanding is that Egg give free SBTs. I don't think it's just during the 0% period.

Can someone verify this?

Alliance & Leicester are currently £5 min payment per month (not the usual 2%-5%).

Reaper

My understanding is that Egg give free SBTs. I don't think it's just during the 0% period

Yes, free all the time.