Noob to stooze

monki_man

After reading other people's story on stoozing, I've been itching to take advanatage. !st of all can somebosy tell me what banks offer 0% balance transfer and the credit cards should have a way of paying money directly into a bank account ?? I've seen loads of 0% balance transfer cards but never sure about transfering.

Please help

Unbelievable_2

Egg, Mint and all cards operated by MBNA (eg Virgin, Alliance & Leicester etc) all allow SBTs (ie transfers from your card to a bank account). During the 0% period Egg and Mint are free, MBNA may incur a charge which could be £35, £50 or 2% of the transfer depending on which way the wind is blowing! With Mint you have to use a Transfer & Save Cheque, make it payable to yourself and deposit in an account of your choice.

The simplest one to go for is probably Egg. Once you have one of these you can channel balances from other cards which don't allow SBTs through your Egg card.

It goes like this: transfer up to your credit limit from Egg to bank account, transfer the Egg balance to another 0% card thereby freeing up the credit limit on your Egg again, transfer up to your Egg credit limit from Egg to bank account.... (I know a song that'll get on your nerves!)


HTH

monki_man

That is such a well explained answer, thanks Unbelievable. I'm gonna search for egg and get baby

just applied for egg and wow..got to say their response was instant and allowing me to borrow £5k Also just wanna add..is it wise for me to get any credit card no matter what their balance trasnfer rate is as long as i get a high limit or does both cards have to be 0% balance transfer. For example like unbelievable mentioned above..transfer all my egg limit to my hsbc, then get another card and transfer that to egg.

Unbelievable_2

No - only go for 0% cards. Always make sure you pay the minimum payments on all cards, on time. Don't spend any of your stooze money (unless it's to make the minimum payments). Ask when your 0% period ends and make sure you transfer or pay off the balance by that date (this date may not be the same as your statement payment due date so watch out). Be aware that, after your min payment has reappeared in your credit limit, you can SBT it if you want to (as long as BTs are free). Edit Forgot to say, always read your terms & conditions ::)


Read as many articles and threads on here as you can about stoozing and keeping a good credit reference going and also about incresing your Egg credit limit.

Be careful and have fun  ;)

Luffer

Apologies for hijacking but I didnt want to ask the similar questions on a new thread.

Im considering trying this too., I have a card (Card A) with a 7k 0% limit. Am I right in reading that I transfer this to Egg (currently no balance) as a £7k balance transfer, then transfer the new £7k positive balance on Egg into an Egg savings account. (Can I SBT into an Egg savings account or do I need to route via my current account?)

Keep up min monthly payment to Card A from current account , which is then the same as saving the min payment (as it comes off the amount of the final transfer)

Card A offer ends May, but Egg anniversary is April, so come April I then transfer the Card A balance to Green Egg for another 5 months 0%.

I have also been offered a Blue Egg card with 6 months 0%, should I do the same with this (using the money in the savings account to meet minimum payments), or use it as a future 0% transfer?

Finally - (stupid I know), I have destroyed the physical green egg card to ensure last time I did a balance transfer (to a seperate card only) I didnt use the card. Am I safe taking the card number from the details appearing in my account as a cut & paste?

Again, apologies for threadjacking :-[

monki_man

Im considering trying this too., I have a card (Card A) with a 7k 0% limit. Am I right in reading that I transfer this to Egg (currently no balance) as a £7k balance transfer, then the positive balance into an Egg savings account.

Hey Luffer
Its ok to ask quesiotn on here, it more the better really course then I'll understand more. Altought reading a lot of articles on this site, there are still some quesiotns I want to ask. So can you only transfer the positive balance from your egg card? (again it might be a thick quesiotn to you lot)

Luffer

Thanks monki_man,

Hey Luffer
. So can you only transfer the positive balance from your egg card? (again it might be a thick quesiotn to you lot)

I havent done this before so like you, this is forum learning at the moment.

My understanding is that Card A will not allow a transfer into a bank account, only a balance transfer to another card. So, if I transfer to Egg I have completed the balance transfer. Egg then allows me to transfer these funds into a bank account.

The Egg card acts as a go between, taking the money from the card not allowing transfers into bank accounts, and then allowing the funds to be transferred into a bank account.

The positive balance is needed in my case because i am not in a 0% interest free deal with egg, so if I go into a negative balance (borrow on the card) I pay interest on the borrowing at 13.9% or whatever the current rate is. (not clever if Im only earning 5% in a savings account)

If I transfer a positive balance, I am not borrowing on the card, and therefore do not pay interest.

If I was in an interest free period with Egg, and my credit limit was say £5k, I could transfer the whole of the £5k limit into an account as I am not paying interest on this borrowing.

Hope that helps, and that if I have misunderstood someone will put me right

monki_man

I'm getting there..

One more thing, say if I was on interest free with 5k limit, with Egg, and Ill get a normal 0% balance transfer (card A with £5k limit), I should take all the money from card A and place it on my egg and then 10k from egg to my bank account. This would avoid me paying any interest.

also going back to what you were saying, I basically need one super balance transfer card (i.e. Egg) so when my 9mths interest free period runs out, I could still use it as long as the card has a positive credit on. This is all to avoid any interest payment.

Luffer

I'm getting there..

1) - One more thing, say if I was on interest free with 5k limit, with Egg, and Ill get a normal 0% balance transfer (card A with £5k limit), I should take all the money from card A and place it on my egg and then 10k from egg to my bank account. This would avoid me paying any interest.

2) - also going back to what you were saying, I basically need one super balance transfer card (i.e. Egg) so when my 9mths interest free period runs out, I could still use it as long as the card has a positive credit on. This is all to avoid any interest payment.

1) - If Card A will allow you to transfer money direct into a bank account then I dont think you need to go via Egg. However, if Card A will not allow an SBT then you need to transfer it to a card allowing SBTs first, such as Egg.

I think it makes no difference if you transfer the £5k from Egg to an account first, then transfer £5k to Egg from Card A (taking egg back to a zero balance) and then do another £5k from egg to the account. The other option is transfer the 5K from card A to Egg (giving Egg a £5k positive balance), then transfer £10k from Egg into your account.

This isnt about interest assuming both cards offer 0% balance transfers, its simply about moving the money from card A into a bank account which card A does not allow directly.

2)Im not quite sure what you mean.

Once your interest free period with egg runs out, you need a zero balance on Egg card or else you will pay interest on the balance in the usual manner.(Before the end of the interest free period you need to repay the borrowing in full, if you borrow £5k at 0% interest for 6 months, but dont pay it back before the end of month 6, you will be charged interest on the 5K borrowed at 13.9% from month 7 onwards.)

The Egg card allows funds to be moved from a card not allowing SBTs into a bank account, as you can make payments from Egg card into a bank account. If you then have another 0% card that does not allow SBTs, balance transfer the available limit to the Egg card, giving a positive balance with Egg, then transfer the positive balance into an interest bearing account.

If you transfer more than the positive balance you are effectively spending the extra on the card and would have to pay interest on the amount borrowed. Equally, if you transferred £5k from a card not offering 0% balance transfers, you would be liable for the interest on the £5K borrowed.

At least, thats my understanding of it!

monki_man

The Egg card allows funds to be moved from a card not allowing SBTs into a bank account, as you can make payments from Egg card into a bank account. If you then have another 0% card that does not allow SBTs, balance transfer the available limit to the Egg card, giving a positive balance  with Egg, then transfer the positive balance into an interest bearing account.

I get ya now ;D Its all good. However, what do you mean by bearing account. As in the interest rate when you transfer the positive balance to our bank account?

Luffer

An interest bearing account is one that pays interest on any money deposited in it.

Usually a savings account.

No point transferring the money into a bank account if its not earning you any interest.