Egg credit Card/Egg Money Card.

Milarky

grumbler wrote:

If '1k credit' is '1K credit limit', then you are right. There is no point in using anniversary offer unless you need to borrow money. 2% fee for 5 months is in fact 4.87% APR. It is very difficult to make profit by borrowing small amounts with such APR. Only if you have much bigger limit you can make some profit. For example, £50/£5000=1%=2.41%APR

It's more than that. The fee is 2.5% (so £25 per £1,000 borrowed.) That then increases at the standard rate of interest and does not get repaid until last (so £26.59 after five months.) The average outstanding balance is less than the amount originally borrowed due to four minimum payments of 2% each (so £966.33 o/s for £1k borrowed)

That works out at 6.73 APR (I think)

100% x [(1 + (£26.59/£966.33))^(12mths/5mths) - 1 ]

mary

So, how am I affected. I have Egg Money and do the regular shopping on it for the 1% cashback, approx £600 - £900 per month. I'm expecting to do a BT when my Guide Dogs card comes through. So, if I have a say -£600 currently sitting on Egg Money because I haven't yet got to the end of the month and made full repayment, what then if I throw in say £4,000 from GDB. This then makes a positive £3,400. Can I immediately transfer that £4,000 to my current account, or can I only transfer the positive £3,400. Do I get any charges if I transfer the full £4,000, or is it okay if all is repaid at the end of the month?

YorkshireBoy

@Mary

The way I 'play' it is to request the £3,400 BACS transfer, and then rather than pay Egg the £600 I would have paid them (via the full payment DD), I send that £600 payment to my stooz pot. Using Microsoft Money helps manage the transactions for me.

The crucial thing to watch out for is that it's a purchase transaction that takes you into a negative balance - NOT a BACS transfer. For this reason you need to ensure you haven't forgotten about a purchase you have made (or possibly a 'once a year' CPA) which hasn't shown up yet, but which might be posted between the time you request the BACS transfer and the date the BACS transfer is actually debited to your account.

EDIT: Grumbler sums this up with his example above...

Balance=+£100(CR) > transfer £100; purchase £50 > balance=-£50(DR), no interest if paid in full.

Balance=+£100(CR) > purchase £50; transfer £100 > balance=-£50(DR), interest is charged on £50 from the day of transaction until paid in full.

mary

YorkshireBoy wrote:

@Mary

The way I 'play' it is to request the £3,400 BACS transfer, and then rather than pay Egg the £600 I would have paid them (via the full payment DD), I send that £600 payment to my stooz pot. Using Microsoft Money helps manage the transactions for me.

The crucial thing to watch out for is that it's a purchase transaction that takes you into a negative balance - NOT a BACS transfer. For this reason you need to ensure you haven't forgotten about a purchase you have made (or possibly a 'once a year' CPA) which hasn't shown up yet, but which might be posted between the time you request the BACS transfer and the date the BACS transfer is actually debited to your account.

EDIT: Grumbler sums this up with his example above...

I presume you leave the "full payment DD" to stand so that Egg automatically clears the £600 they are due from your existing positive balance?

I'm not familiar with Microsoft Money.

So BACS transfers are okay but purchases are the potential problem.

I saw Grumbler's example, but as I saw it, he started with a postiive balance in the first place. In my case I will have accumulated some spending
(i.e. -£600), then interrupted it with a + £4,000BT/-£3400 Bacs transfer and then carried on spending (maybe another £200) once the BT has gone through, giving a gap of about a week around the BT time.

YorkshireBoy

mary wrote:

I presume you leave the "full payment DD" to stand so that Egg automatically clears the £600 they are due from your existing positive balance?

You leave the full payment DD so that it collects whatever balance you have at the end of the month.

I'm not familiar with Microsoft Money.

For 'complicated' finances, such as mine, it's the best thing since sliced bread!!

So BACS transfers are okay but purchases are the potential problem.

It's the transaction that tips the balance between a +ve and -ve balance that's the "potential problem".

I saw Grumbler's example, but as I saw it, he started with a postiive balance in the first place.

The +ve balance that Grumbler started with was the result of a BT from Egg Money.

In my case I will have accumulated some spending (i.e. -£600), then interrupted it with a + £4,000BT/-£3400 Bacs transfer and then carried on spending (maybe another £200) once the BT has gone through, giving a gap of about a week around the BT time.

As stated earlier, the best approach is to wait until the BACS transfer is showing on your account before resuming spending. In your example, you'd BACS the £3,400 and then rather than repaying the £800 purchases bill via full payment DD, Egg would collect the £200 and you'd send the other £600 to your stooz pot.

hilary1

Things are a bit easier to understand now.

Wont do an aniversary bt as its too small amount.

i have egg money manager and its much easier to see all your accounts on one screen and then to just get into your accounts without having to go to different places.

thanks
xx:laugh:

mary

I also have the Egg Card, with a limit of £13K still on it. Is there any occasion now when it's worth using for stoozing i.e. by putting a positive balance on it only during "normal" time, but not during an anniversary month and not during a special promotion period. Or should I now ditch it and just use the Egg Money for everything (spending and SBTs)?