The Best Balance Transfers article discussion area

Moggles_2

Originally Posted by lidibeth
I am just about to buy a house with my boyfriend and we have set aside some money to pay off an outstanding loan he has for £5000. However we are not going to have this money until March. Is there an interest free credit card that we can transfer the Egg loan to for the next few months to cut down on the interest we will pay?

You can shift a credit card balance to another credit card. Transferring a loan to a credit card is not so straightforward. Only a few rather special cards have this capability.

A credit card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin) Egg Visa or the Post Office card, will allow you to transfer cash from the card to his current account. From there he can pay off the loan.

Alternatively, you can use Egg Money in conjunction with any low-interest balance transfer card to move funds to his current account.

Mint periodically issues credit card cheques, which can be paid directly into a current account.

If you really will have savings to pay off your balance in 6 months time that's great, but always bear in mind that the reason the card companies can afford to lend you money at 0% for X months is because, more often than not, customers do not clear their debt and end up paying extortionate interest when the interest-free period ends. This is the main way lenders claw back the cost of these promotions.

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

buzzman

Hi all,

Don't know if this has been talked about before but here goes,

Just a thought for those doing a Balance Transfer.

Why not take out a 0% BT deal with say 3% fee charge. Then just pay off the minimum payment each month.
Next take out a savings account with a decent interest rate.
Work out equal payments for the period of interest free (some out there for 14 months +) and pay this amount into saving account.
When interest free period is coming to an end then just withdraw all savings and interest and payoff card!

This would reduce your fee to zero or in some cases put you in profit!

Hope this helps someone out there! :T

Moggles_2

Originally Posted by buzzman
Just a thought for those doing a Balance Transfer.

Why not take out a 0% BT deal with say 3% fee charge? Then just pay off the minimum payment each month.
Next take out a savings account with a decent interest rate.
Work out equal payments for the period of interest free (some out there for 14 months +) and pay this amount into saving account.
When interest free period is coming to an end, withdraw all savings and interest and pay off card!

This would reduce your fee to zero or in some cases put you in profit!

Have a look at Martin's *Stoozing*article on the main site (That's right, there's even a name for it )

Also, at the top of this board, you'll find a sub-board for *Stoozing:free cash from credit cards*

MissMoneypenny

Moggles wrote: »

A credit card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin) Egg Visa or the Post Office card, will allow you to transfer cash from the card to his current account. From there he can pay off the loan.

Thanks, you have already answered the question I was just going to ask:T

Can I also remind people to look on quidco to see what they are offreing to open credit cards. Egg offering £20 cashback now (was £30). Don't forget to remove any relevant cookies before you go to the cc site through quidco. Just make sure that it is tracking, if you do take a card out through quidco.

B.W._Fox

ALERT ALERT ALERT
Anyone considering a balance transfer to the Goldfish card (3.9% 'til July 2010) - the rates have now changed.

The deal is now 4.9% until December of 2010.

BWF

stuarthw

Beware of teh Barclaycard Platinum option . Its advertised as 0% 15 months ( with 2.5% fee) BUT they only offer a transfer maximum of £5000.

An alternative is Virgin with no such petty restriction.

Moggles_2

Hi stuarthw

Welcome to MSE & the credit card boards!

Beware of the Barclaycard Platinum option . Its advertised as 0%f or15 months (with 2.5% fee) BUT they only offer a transfer maximum of £5000.

BTs over £5000 are accepted (provided that these don't exceed 90% of your credit limit) but anything over £5000 is charged at 6.9% for the life of the balance.

Proof, if more were needed, that it pays to read the small print

Btw, the offer is 0% for 14 months.

neyland

I have just received my new Barclaycard Platinum and have tried to make a balance transfer only to be told that I am not able to, due to my credit rating.

I was under the impression that an individuals credit status is reviewed upon application of the credit card and those with an unsatisfactory credit rating are declined. With this in mind your can imagine my disbelief when I was told that I was unable to make a balance transfer due to my credit worthiness.

I fail to see where it states within the Barclaycard Conditions that the balance transfers are subject to any additional terms and conditions than those printed on the acceptance letter.

Am I wrong in my above assumptions???

Thanks.

Moggles_2

Hi neyland

Welcome to MSE & the credit card boards!

This unwelcome development has been reported to this forum by new as well as existing Barclaycard customers in recent weeks.

It shouldn't be allowed, IMO, but unfortunately the Ts & Cs state "We reserve the right to refuse a credit card balance transfer .." so there's nothing you can do about it, other than threaten to close the account. You never know, you might be offered an incentive to stay

Very best
M

langtounboy

can someone please tell me why Barclay card will only give me a credit limit of £2000. I'm trying to get £4000 interest free for the maximum time.
I've got the egg money card waiting for the transfer but as Barclay only offered a max transfer of £1800 I told them not to bother.
My wage is well above the national average and my job is secure, I have mortgages, I haven't been in debt used my overdraft etc so why such a trifling amount and what cards will give me a larger transfer.
Thanks in advance