Is it really this easy!

pioneer31

Hi Luffer

I think I've got it now.

I have 5k on my current card which needs paying off. I BT it to Egg and SBT that to my current account.

Sounds good, but it also seems like Egg will be giving me twice my limit because they pay off the other card and then pay me into my account.

Unbelievable_2

miserly

I may have misunderstood but I don't think you've got it quite right.

If you owe £5000 on your other card and you use Egg to pay it (ie. transfer your balance from your other card to Egg) then, unless your Egg limit is more than £5000, you won't have any credit limit available on Egg, so you can't do the SBT. ???

Walletwatch

Can someone pls tell me how long does a typical balance transfer take? Considering my egg card is going to be the focal point, specifically, how long does it take to transfer from another card to egg and vice versa?

Martinslovechild

I think some posts are slightly misleading (not intentionally) because it appears to read that you can move a balance (eg 5k) from Card A to Egg to your bank.

You certainly can.

Let's say that your Egg Card shows a balance of £0 and your card A also shows a balance of £0.

1. BT card A's entire credit limit from Egg to Card A.
2. Card A now has DEBT of £xxxx and Egg has CREDIT of £xxxx.
3. Now BT from Overdraft to Egg Card.
4. Egg now has balance of £0 again, and Current Account contains £xxxx.

pioneer31

You certainly can.

Let's say that your Egg Card shows a balance of £0 and your card A also shows a balance of £0.

1. BT card A's entire credit limit from Egg to Card A.
2. Card A now has DEBT of £xxxx and Egg has CREDIT of £xxxx.
3. Now BT from Overdraft to Egg Card.
4. Egg now has balance of £0 again, and Current Account contains £xxxx.

It must be me but that seems to be back to front ???

Walletwatch

You certainly can.

Let's say that your Egg Card shows a balance of £0 and your card A also shows a balance of £0.

1. BT card A's entire credit limit from Egg to Card A.
2. Card A now has DEBT of £xxxx and Egg has CREDIT of £xxxx.
3. Now BT from Overdraft to Egg Card.
4. Egg now has balance of £0 again, and Current Account contains £xxxx.

Miserly

Your confusion is understandable. What has been quoted here is moving debt from one place to another. If you are more comfortable the other way round, you can replace the source with the destination, and understand it as moving money (instead of moving debit balances in the opposite direction)

So to restate what has been explained in the quote in money terms:

1. BT card A's entire credit limit from Egg to Card A.

This would translate to moving money from Card A to Egg to the extent of the max limit of Card A

2. Card A now has DEBT of £xxxx and Egg has CREDIT of £xxxx.

Self explanatory based on my notes on 1. above

3. Now BT from Overdraft to Egg Card.

Transfer the money from the Egg card to your Current / Overdraft Account

4. Egg now has balance of £0 again, and Current Account contains £xxxx.[/quote]

Egg has an available balance of 0 (as all of the available credit limit that you have transferred is sitting on your current account

HTH (and read this one as 'Hope that helped' )

Luffer

You certainly can.

Let's say that your Egg Card shows a balance of £0 and your card A also shows a balance of £0.

1. BT card A's entire credit limit from Egg to Card A.
2. Card A now has DEBT of £xxxx and Egg has CREDIT of £xxxx.
3. Now BT from Overdraft to Egg Card.
4. Egg now has balance of £0 again, and Current Account contains £xxxx.

Lets try to make this excellent explanation easier to follow by adding figures

Lets say, you wwoke up this morning and the nice people from card x have sent you a letter saying you have been pre-approved for an x card, with a £7k credit limit, and 0% interest on balance transfers for 6 months.

Currently you have an egg card, with a debit balance of 0, and a savings account with a balance of 0, but want to use the interest free loan.

1) - Balance Transfer the full £7k limit from card x to egg. Card X now has a negative balance of -£7k (a loan) and egg has a positive balance of +£7k (a crediit).

2) - (Super) Balance transfer the £7k positive balance from egg to your savings account. balances now as follows
Card x -£7k
Egg - £0
Savings Account +£7k

3) As you now have a debt on card x - you must meet the minimum payments for the next 6 months, and pay off the full balance before the end of the interest free period .

4) after 6 months, your debt on card x has not increased above £7k as you have not paid interest on the loan. However, you have earned interest on the £7k deposited in your savings account (Your profit).

pioneer31

Lets try to make this excellent explanation easier to follow by adding figures

Lets say, you wwoke up this morning and the nice people from card x have sent you a letter saying you have been pre-approved for an x card, with a £7k credit limit, and 0% interest on balance transfers for 6 months.

Currently  you have an egg card, with a debit balance of 0, and a savings account with a balance of 0, but want to use the interest free loan.

1) - Balance Transfer the full £7k limit from card x to egg. Card X now has a negative balance of -£7k (a loan) and egg has a positive balance of +£7k (a crediit).

2) - (Super) Balance transfer the £7k positive balance from egg to your savings account. balances now as follows
Card x                 -£7k
Egg                     - £0
Savings Account +£7k

3) As you now have a debt on card x - you must meet the minimum payments for the next 6 months, and pay off the full balance before the end of the interest free period .

4) after 6 months, your debt on card x has not increased above £7k as you have not paid interest on the loan. However, you have earned interest on the £7k  deposited in your savings account (Your profit).

Thanks Luffer and WalletWatch I unerstand it now. It must be the way my brain is wired  ;)

Luffer: Just one last point. the transfer of 7k from Card x to Egg is an SBT not a BT surely as there is no balance on it (ie it looks like a cash advance). In this case couldn't you just go from Card A straight to the current account?

Unbelievable_2

miserly

There are only a very few cards which allow you to balance transfer directly to a current/savings account (aka super balance transfer). The main ones of these are Egg, Mint (using Transfer & Save cheques) and all cards issued by MBNA.

All the others require that you balance transfer to another card. The cards which do allow SBTs are simply a 'mule' to get your available credit limit on a card which does not allow SBTs into your bank account.

pioneer31

UnBelievable

Right I gotcha now. So the Egg card is the middle man and a must for anyone into heavy stoozing.

So it is possible to keep passsing money through the egg card repeatedly as long as you're within the 0% period? No wonder its so popular

I never knew until I read this thread that CC cards let you BT to another unless you had run up a debt on them through spending even though technically its the same thing - they're still lending you the money.