Transferring money from a credit card to a bank account

WillF_2

Hi All,

Firstly, I would like to say that I am fortunate enough to not be in any debt other than being £300 into my overdraft.

I start my a new job at the end of November (with a 20k pay increase over my current salary!) and I need to relocate to the other side of the country.

After countless viewings in several towns, we have finally fallen in love with a property (which we will be renting) and have paid the holding deposit.

However, before we move in, the letting agent needs just under £2000 (Deposit + First Month's Rent + Fees).

My problem is that I have absolutely no cash! I thought I was saved when Egg approved me for a Credit Card with a £2300 limit, but the letting agent does not accept credit card payments, they can only accept cash or a bank transfer.

What's the best way for me to get the cash off this card and into my/their bank account? I'm aware that there will be fees and interest but I will be able to pay this off very soon once I have settled into my new job.


Any other ideas to solve this problem would be hugely appreciated! :beer:

YorkshireBoy

Egg Card or Egg Money?

NickX

Egg offer Super Balance Transfer capability. That means they will send funds direct to your Bank Account and charge you as though its a Balance Transfer. You need to request a Money Transfer, but check the rates you will be paying first.

WillF_2

Thanks, it's an Egg Money card.

I haven't actually received the card yet so I haven't been able to log into the control panel; so it is simply a case of entering my bank account details and transfering the money?

lisyloo

The balance transfer interest on Egg Money is 8.9% on their website.

If you will have the loan very short term then that's not necessarily a problem.

But do neither of you have family e.g. parents? who would make a short term loan.

WillF_2

lisyloo wrote: »

The balance transfer interest on Egg Money is 8.9% on their website.

If you will have the loan very short term then that's not necessarily a problem.

But do neither of you have family e.g. parents? who would make a short term loan.

Sorry for the noob question, but how does that interest rate work? If I transferred £2000 would I then be charged 8.9% per month? i.e. £178?

I borrowed money last time i moved and I would hate to have to ask my family again.

NickX

No, its an APR which is an annual rate. So £178 per year. Its going to be about £14 per month.

There will probably be a fee of around 3% to actually transfer the funds though (i.e. £60) which is added to the debt.

lisyloo

No, it's stated as 8.9% per annum.
I would suggest you cjheck your own contract in case this is "typical" and your is diffferent as I don't know if that is standard for everyone, it's just what's on the website.

Let's suppose you borrow the money for 30 days.
They will calulate this as

2000 * 0.089 * 30/365

So your interest for 30 days will be £14.63.

However be aware that there is a concept called residual interest, which is probably best explained with an example.
Lets suppose you get your statement after day 15 (I am assuming NO other activity on the card).
You would get a bill for £2000 plus half the interest e.g. £7.31.

Assuming you pay that off after 30 days.
Then the next month you will get bill for the remaining £7.31.
Plus you will have 30 days interest on the remaining £7.31.
and so it goes on..........interest on your interest.

The way to get round this is to pay an extra sum with the first payment e.g. an extra £20. You might be a little in credit, but at least you won't get never ending credit.
You can use up the credit by buying some petrol or food or other spending onn the card.

lisyloo

There will probably be a fee of around 3% to actually transfer the funds though

No bt fees on egg money.
Check on ww.egg.com, but I would also double check your own arrangement jsut in case.

WillF_2

lisyloo wrote: »

No, it's stated as 8.9% per annum.
I would suggest you cjheck your own contract in case this is "typical" and your is diffferent as I don't know if that is standard for everyone, it's just what's on the website.

Let's suppose you borrow the money for 30 days.
They will calulate this as

2000 * 0.089 * 30/365

So your interest for 30 days will be £14.63.

However be aware that there is a concept called residual interest, which is probably best explained with an example.
Lets suppose you get your statement after day 15 (I am assuming NO other activity on the card).
You would get a bill for £2000 plus half the interest e.g. £7.31.

Assuming you pay that off after 30 days.
Then the next month you will get bill for the remaining £7.31.
Plus you will have 30 days interest on the remaining £7.31.
and so it goes on..........interest on your interest.

The way to get round this is to pay an extra sum with the first payment e.g. an extra £20. You might be a little in credit, but at least you won't get never ending credit.
You can use up the credit by buying some petrol or food or other spending onn the card.

Thank you so much for taking the time to teach me this, much appreciated.

So to clarify, is it simply a case of me logging into the online portal and transferring the money to my account? Or do I need to do it over the phone? How long does the transfer normally take?

Sorry for the questions, but the deadline for me paying this money is looming and I'm getting quite anxious.

Thanks again.

YorkshireBoy

WillF wrote: »

So to clarify, is it simply a case of me logging into the online portal and transferring the money to my account? Or do I need to do it over the phone?

Can I transfer balances to Egg Money?

How long does the transfer normally take?

Should be about 3-5 working days, maybe a little longer.