How to get a large balance on credit card and then remove it?

single_lonely

Mrchip
buy some babystuff
assuming this is your first child, you will need quite a bit, just stock up.

Headups for the idea!!!
no one hardly claims do they on PPI?

MrChips

Deleted_User wrote: »

MrChips - I admire your candour. While I don't think I would do the same as you, and it may or may not be more than 'cheeky', you've clearly thought it through.

I trust, however, should your other half have twins or more, you will be asking them for 30% of the balance or whatever multiple best represents the outcome. Septuplets should clear the balance and provide a modest cash bonus to boot.

Lovely idea! If we had that many we'd need as much "free money" as we could get. Alas the T&Cs limit claims to two within 12 months. However, my wife also has the same card and same policy, we should be able to claim 30% this way

JimmyTheWig

CannyJock wrote: »

Nothing I can see. Unless there's any additional documents on restrictions on making a claim, seem pretty straight forward.

I agree. Incredible, certainly, but it looks like the OP is safe.
I wonder if anyone else has the guts to take out such a policy for the same reason?

Only bit that's not clear to me is whether they pay 5% of the balance of the card at the time of the event for 3 months, or whether they pay 5% of the balance at the time of the event, then 5% of the balance a month later, and the final 5% 2 months after which would scupper the 15% plan on a quick refund

I think this is clear enough, in the OP's favour.
Page 16 states "Three Monthly Benefits will be paid to the Coverholder upon the birth/adoption of a child where You are the legal guardian or parent."
"Monthly Benefit" is defined (page 4) as at least "5% of the Claim Event Balance".
"Claim Event Balance" is defined (page 3) as "Your total indebtedness to the Coverholder under the Agreement at the ... date of Your Lifestyle Event".

Sounds foolproof.

Sounds like whatever happens, OP, you will be hit with a fee of a few percent to get this money out. But if you're confident at getting 15% back (and by the terms and conditions it looks fine) then that will more than cover the fee. The easiest way to get the money out will be a balance transfer to an Egg Money card, if you've got one. Otherwise a "super balance transfer" into your current account.

MrChips

JimmyTheWig wrote: »

Sounds foolproof.

Sounds like whatever happens, OP, you will be hit with a fee of a few percent to get this money out. But if you're confident at getting 15% back (and by the terms and conditions it looks fine) then that will more than cover the fee. The easiest way to get the money out will be a balance transfer to an Egg Money card, if you've got one. Otherwise a "super balance transfer" into your current account.

I rang the provider today to clarify and the lady I spoke to confirmed that 5% of the outstanding balance on the date of birth will be paid for three months, even if I pay off the card in the meantime. Technically it is at least 5% of the balance for three months as the benefit is "the greater of" this and a couple of alternatives, one being the minimum payment due on the monthly statement. I wonder if I can persuade MBNA to increase my minimum payment to 33% of the outstanding balance? That would get me 99% of the outstanding balance

The question therefore reverts to how to build up a big balance quickly without having to spend several thousand pounds on goods I don't need/want. I think the HMRC options sounds preferable to EGG Money as the fee will be 1.25% as opposed to 3%.

JimmyTheWig

MrChips wrote: »

I wonder if I can persuade MBNA to increase my minimum payment to 33% of the outstanding balance? That would get me 99% of the outstanding balance

Just to be pedantic, this wouldn't work as it would be worked out on a month by month basis. I.e. the second month you'd only get the maximum of 5% of the first month's balance and the minimum payment on the second month's balance.

MrChips

True, but it would mean I wouldn't pay off the card - rather, I'd top it back up to 100% each month to max it out for the entire three months. I'd have to pay 0.79% of the balance in premiums, but I could live with that.

JimmyTheWig

When's the baby due?
How long until we find out if it works or not?

(Congratulations on the impending arrival, btw.)

CannyJock

You do realise that if you don't post back with the outcome of this then we'll be obliged to hunt you down?

MrChips

Not due until January. So 7 months to perfect the operation

I rang the card provider but they can't change the minimum payment unfortunately. Perhaps a strongly worded letter about a fear of being in perpetual debt would allow them to make a one off exception?

JimmyTheWig

MrChips wrote: »

I rang the card provider but they can't change the minimum payment unfortunately.

You could do the balance transfer now and then not make any payments for the next 7 months.
I believe that all the late fees plus all the missed payments will be added on to your minimum payment each month. If this is the case then by January you will have a nice big minimum payment waiting for them to pay off for you.

Not suggesting that you do this, though.
In fact, I'm not sure that I'd suggest you do it at all, but it's up to you.