Egg Money - the only positive balance card?

N5girl

Hi

I have read the stoozing guide but I couldn't find an answer to this question. Apologies if this is answered elsewhere.

If I do a balance transfer from a card to a credit card with a zero balance I assume I will create a credit on that card. Can this credit then be paid out fee free or is this only possible with the Egg Money Mastercard.

For example, let's say I transfer 5k onto virgin money and 'pay off' my Nationwide card (for example). As the Nationwide card does not have anything on it this will create a credit or positive balance. Will Nationwide pay this out fee free (I would be happy to close the card down as they have shocking customer service)?

I assume as everyone on this forum mentions only Egg Money that Nationwide (or other providers) will consider this somehow to be a cash transfer and charge a fee but I wanted to check before having to get the OH to apply for an Egg Money card.

I only ask because recently I have had small cash balances on credit cards from direct debit overpayments and the card providers have just sent me a cheque (and closed the account).

Many thanks for your help.

Moggles_2

Personally, I wouldn't risk putting a credit card in credit deliberately. Credit cards - other than Egg Money - are not designed to carry a positive balance.

Most lenders are relaxed about modest sums that arise temporarily (due to a refund, for instance, or making a one-off manual payment too close to your direct debit payment date).

That said, those same lenders may take a different view if your BT results in a four figure sum in credit, as many forum users have discovered the hard way.

Gordon_the_Moron

The biggest risk to doing this is the card company (in your example Nationwide) may return the money to where it came from, so you get the 0% card, transfer to Nationwide, they send the money back to pay the card off and you have incurred a balance transfer fee for absolutely nothing. If they allow the positive balance to stay, even if they are going to charge a fee to withdraw/transfer it you don't have too much of a problem, simply don't withdraw it but spend it on things you would have done anyway such as grocery shopping and fuel for a car, thus saving the money you have in a bank account.

Moggles_2

Gordon_the_Moron wrote: »

If they allow the positive balance to stay, even if they are going to charge a fee to withdraw/transfer it you don't have too much of a problem, simply don't withdraw it but spend it on things you would have done anyway such as grocery shopping and fuel for a car, thus saving the money you have in a bank account.

Yes, if you decided to spend your way out of the predicament, I'd use it for necessary expenditure like food, petrol etc.

Just be aware that if something went pear-shaped, section 75 wouldn't apply, because technically it's not credit. Also, if your card were stolen, you wouldn't be covered for fraudulent transactions.

Moggles_2

P.S. I'd check your Nationwide paperwork very carefully. The Ts & Cs of some cards specifically prohibit payments that deliberately place the account in credit.

The outcome certainly depends on the lender involved and their interpretation of anti-money laundering procedures. If you do this with some credit cards, their fraud dept will put a stop on the card and you won't be able to use it at all.

From feedback here, these issues are not resolved quickly, so it pays to keep within
your Ts & Cs

N5girl

Hi

Thanks for all the replies. I suspected as much. It's best never to try to do anything out of the ordinary with Nationwide.

Just out of interest I assume that the new egg money card still allows a positive balance and transfers to a bank account or egg savings. I read the T & C but could not see anything regarding positive balances.

Thanks

Rard

Off the top of my head I seem to recall AMEX will not question accounts in credit under £1000 and will just send out a cheque or transfer to your bank when you request this. It MAY be possible to put several cards slightly into credit then request the credit as a cheque or BACS payment.
I only have knowledge of AMEX so as previously stated you would have to be very careful and check the individual T&Cs

Nailer99

I have found that the Co-op "Clear Card" is very good for this sort of thing. Never had any problems with a positive balance and then transferring the money out.