The Best Balance Transfers article discussion area

Moggles_2

Originally posted by micktsb
... they send you a cheque book so that you can pay off a loan, i specifically asked them if i could do this to pay off a lloyds bank loan.All you do is write out a cheque pay it into your account ...

The risk in paying off a loan this way is that you can't be sure of another 0% credit card offer in X months time when your current 0% deal ends and the interest rate jumps to anything from 13.9 to 27.9% APR or higher.

If you will have savings to clear your balance in 12 months time that's great, but always bear in mind that the reason MBNA can afford to lend you money at 0% for 12 months is because, more often than not, customers do not clear their debt and end up paying extortionate interest when the promotion period ends. This is the main way MBNA increases its customer base and claws back the cost of the promotion.

Also, you'll need to factor in the uncapped 2.5% balance transfer fees and check the loan Ts & C's. Lloyds TSB may charge an early repayment penalty if the loan is settled in full before the scheduled date.

supermartyo

Have recently tried to turn my fathers idea of debt around. He has now taken on the mantra of the only percentage that is ok is ZERO!!!!

I myself had applied and recieved a S&S Coop card with 0% transfer fee, yet he recently recieved his card with the mention that there is a 2% handling charge now. Hardly worthwhile for 6 months when there are better offers about.

Cheers

Supermartyo

Moggles_2

Hi supermartyo

Welcome to MSE & the credit card board!

Thank you for the feedback about Stroud & Swindon, which alerts others. There is no mention of a balance transfer fee on the Stroud & Swindon website!

Has your father kept a copy of the terms & conditions he signed up to? If he applied when 0% balance transfers were offered for 6 months without handling charges, that's what he should get. At least he has 0% on purchases, which should help him to pay off the other card.

Congratulations on persuading your father to become an MSE! :T
M

sibay

Hello all, a question.

I have always been a "straight-forward" credit card user, choosing one for cashback or points (I'm currently with Tesco platinum) and then paying off the balance each month. I would like to know if I can mix this method with a 0% transfer card, for instance, I should like to continue making purchases on my tesco card - I convert points to airmiles and then transfer the balance monthly yo a 0% card. I would then leave the balance on the 0% card for 12 months, then pay the whole lot off or change to a new deal. Is it possible to pay one credit card bill with another credit card, retaining a 0% option?

Also, is it possible to pay standard house hold utilities (such as electric, gas, council tax, telephone, water rates, tv license etc etc on credit card, such as a 0%, stash the cash in a savings account and then settle the lot at the end of the year? Do any moneysavers do this?

cheers, sibay

Moggles_2

Originally posted ny sibay
I should like to continue making purchases on my tesco card - I convert points to airmiles - and then transfer the balance monthly to a 0% card. I would leave the balance on the 0% card for 12 months, then pay the whole lot off or change to a new deal.

Sounds good to me. I do this from time to time. As long as you have savings to clear your balance, if necessary, when the current 0% deal ends, you should be fine. Always bear in mind, a follow-on 0% deal in 12 months time cannot be guaranteed and you'll be okay.

Is it possible to pay one credit card bill with another credit card, retaining a 0% option?

Yes.

Is it possible to pay standard house hold utilities (such as electric, gas, council tax, telephone, water rates, tv license etc on credit card, such as a 0%, stash the cash in a savings account and then settle the lot at the end of the year?

Most utilities providers do not accept credit card payment, but you you will find the odd exception.

Jay_Cee_Ooh

Moggles wrote:

Hi supermartyo

Welcome to MSE & the credit card board!

Thank you for the feedback about Stroud & Swindon, which alerts others. There is no mention of a balance transfer fee on the Stroud & Swindon website!

Has your father kept a copy of the terms & conditions he signed up to? If he applied when 0% balance transfers were offered for 6 months without handling charges, that's what he should get. At least he has 0% on purchases, which should help him to pay off the other card.

Congratulations on persuading your father to become an MSE! :T
M

Hi,

I too received the summary details with my credit agreement that details a 2% min £5 charge for BT's. Called Co-Op and they said that for Stroud and Swindon cards this is waived. The summary sheet is sent with all applications though, hence the confusion.

Nothing on paper to confirm this but I guess we have to trust what we're being told. Hope that helps someone.

Cheers,

Jay

LoDoubleU

ravidhillon wrote:

Hope you don’t mind me contacting you but I thought I would tell you about a good balance transfer rate from egg credit card of all people!!!
Until end of October they are offering some customers life of balance transfer deals @ 5.9% with no transfer fees. I don know if this is a genric offer or just targeted at some customers.
I have an egg card but haven’t used it in excess of 18 months and there is no debt on there!!

what do you think?

I took advantage of this offer, after receiving an email and contacting Egg to check it was correct. I transferred my balance last week, but have just been told its an error and it's only 5.9% until March 2007. I have phoned them to complain and they are phoning me back. BEWARE!!

Chuffy

Hi there folks, I'm looking for advice on how/where to shift a balance to.
I have a Capital One card with a balance on it at 0%, which is due to end January 2007 (1st I think). The balance will be approx £2600 and I set up standing orders for £300 per month so I am looking for a card with a 0% balance until approx September 2007.
I already have an MBNA and an M&S card - what deals are there at the moment that I should be looking at?

TIA.

Phoenix79_2

Chuffy wrote:

Hi there folks, I'm looking for advice on how/where to shift a balance to.
I have a Capital One card with a balance on it at 0%, which is due to end January 2007 (1st I think). The balance will be approx £2600 and I set up standing orders for £300 per month so I am looking for a card with a 0% balance until approx September 2007.
I already have an MBNA and an M&S card - what deals are there at the moment that I should be looking at?

TIA.

HSBC are doing 12 months at 0%
http://www.hsbc.co.uk/1/2/personal/cards-home

Halifax One and Barclaycard Flexi-Rate are 12 months 0% as well

Chuffy

Marbles also has 0% for 12 months from the dat ethe account is opened. It's run b HSBC, and there is also a possible £20 cashback via Quidco which would go towards the 2% BTF.