Egg Loophole Discussion Area

MSE_Martin

To ask a question of discuss the Egg loophole please reply to this post.

To read the article which this discussion relates to please click here

triplea35

I have just obtained a relatively large amount from MBNA on 9 months 0% which I transferred into my current account to offset my mortgage. I like the idea of the Egg card and not having to apply for so many cards but wonder how its going to work out as it is only for 5 months. In 9 months time if I open an Egg a/c and transfer the balance I will have 5 months 0% but will then have to find a card that I can transfer it to for 7 months until the Egg anniversary date . As there does not seem many about that do over 6 months I am wondering if there is any way to get round this

pioneer31

Martin, I am wondering if Egg (like Barclaycard) have got wind of this and are going to close the loophole sharpish?  :-[

2bad4u

I have just obtained a relatively large amount from MBNA on 9 months 0% which I transferred into my current account to offset my mortgage. I like the idea of the Egg card and not having to apply for so many cards but wonder how its going to work out as it is only for 5 months. In 9 months time if I open an Egg a/c and transfer the balance I will have 5 months 0% but will then have to find a card that I can transfer it to for 7 months until the Egg anniversary date . As there does not seem many about that do over 6 months I am wondering if there is any way to get round this

Well Halifax have got their new "1" card which offers 9 months @ 0%.

Even if a card does only offer 6 months, the downside is that you'll only be paying about 1 month of interest anyway!

MSE_Martin

OK to answer the 'do Egg know'. Yes it knows, I double checked just before filing my Sunday Express column that there was nothing to do to stop it. ANd no there isn't. They just hope the following factors will help it

i. Not many will do it
ii. IF they do it, they'll leave it on the card at the 13.9% period
iii. People will spend on the card
iv. It'll be offset by the new cardholders.

MoneySavers have to work to prove them wrong, and we won't find out for a year or so whether we do or not. However in a year, i will rewrire this piece to remind everyone.

As for the 7 months - actually currently there are about four offers of 7 months or longer - i hope that will continue. If not well 0% at 11 months and 1 month at 13.9% (or possibly less depending on the other cards) is still a massive boon!

martin

mr.steve_2

So in a nutshell?????
If I apply for an eggcard and don't spend on it I can make a balance transfer for the first 5 months, repay the minimum repayments for that duration then pay back the full amount, and do exactly the same a year after that and a year after that (just using it for BT's and not spending) then that's a boon for me???? Or do I need to read the article a few more times?

MSE_Martin

Yes in a nutshell

Balance transfer to the card - ONLY when it has no debt on it. So if it has debt on it move the money to another card, so its empty then move the money back and you get it at zero %

Did you find the article confusing. Do you think it is worth me adding this "nutshell summary" to the main article?

feedback welcome

martin

sylblake

Have just applied for two Egg cards, been given total of £19,000 credit). Didn't bother before because have Halifax & Barclays 0 per cent for Life and didnt want too many credit checks. Saw Martin was going to bring out loophole so applied for Egg cards. Very easy and quick, will transfer balance to Ing account to get interest and then transfer back at end of interest free period. Will then keep card until anniversary offer and so same thing. A big thank you Martin, finally have no debt for the first time in years, after getting rid of missold endowment, switching to repayment with London & Country. It is hard work to keep out of debt but with Martin's advice it makes things a lot easier. I hate to think of the debt we would have been in if we hadn't found this site after losing lots to Equitable Life with pensions and also, endowments for mortgage.

Margaret_Millne

When a payment is made to Egg do they see where it came from? The reason I ask is that I am sure Egg's T&C's say that you can balance transfer to a current account providing the money is not then used to pay of other debts to Egg. How closely do they check this?

For this reason I am planning paying from one current account and balance transferring to a different one, just in case.

mr.steve_2

Did you find the article confusing.  Do you think it is worth me adding this "nutshell summary" to the main article?

Only cos I'm new to all this, it takes a while for it to sink in! Your summary answered my question though and I'm sure there are a few other rookies on this site too so I'm sure a nutshell summary at the end of the article (hey, why not even all articles?) wouldn't hurt.

p.s. Just applied for an egg card online and got £750 credit limit and mint gave me £1300, so I reckon I'll share 2 grand between ING and IF ISA!

MSE_Martin

Go Mr. Steve - and if you take another peek at the article you'll see the 'nutshell summary'