M&S Credit Card

forbesy100

I have recently applied for the M&S credit card, as featured on this website and am transferring a balance of £5k from an Egg card. I was attracted by the 3.9% interest rate, which seems to be fixed for any balances transferred during the first six months. I also have a loan with Nationwide and have about £5k to pay off. I was wondering if I could transfer the balance from the loan to the credit card to benfiit from the lower intereset rates.

I would appreciate any feedback.

Regards,


Forbesy100

Tibbyterrier

I too have just received my M and S credit card. Am I able to transfer my Cahoot flexible loan to it to take advantage of the 3.9% interest rate.
thanks

YorkshireBoy

Egg Money Card Trick

Substitute your M&S card for the 0% cards mentioned in the article.

When transferring loans to the M&S card, make sure you go into it with eyes wide open. There are several potential pitfalls.

Tibbyterrier

Please could you explain the pitfalls or am I being totally thick.
Thanks

anniecave

Tibbyterrier wrote:

Please could you explain the pitfalls or am I being totally thick.
Thanks

Firstly you need to make sure that if you transfer a balance for 3.9% for life, you don't then also make purchases on the card, unless you can pay for the lot within a year, otherwise your purchases will go up to the sky-high rate after the end of the year.

Also the obvious make sure you make the minimum payments.

I don't know what else I've missed.

YorkshireBoy

Tibbyterrier wrote:

Please could you explain the pitfalls or am I being totally thick.

• Loan company can charge an early settlement fee.
• Miss a payment on the card, and they'll take you off 3.9% APR and put you on 17.9% APR.
• At 3%, monthly payments to M&S may be larger than the old loan payment.
• Any purchases put on the card during the 12 month introductory period will be locked in at 17.9% APR once the 0% has ended and until you completely clear the LOB transfer element.
• Danger of only ever making minimum payments, rather than maintaining the payments at a level you were paying before, means the loan will take longer to repay.

The above is not an exhaustive list.

Tibbyterrier

Would they charge me an early settlement fee if it is a flexible loan. I was under the impression that I could pay as much as I wanted ,when I wanted.
Thanks

sp00n

I have recently (this week) been declined for an M&S card. Are they known to be particularly restrictive on their credid scoring procedures? I'm not normally declined (however I have taken out a car loan since the last card I applied for.)

forbesy100

Unfortunately M&S have also turned me down. I have applied for HSBC card but they have a balance transfer limit of £2750 and I need to transfer £5000. I currently have the £5000 balance on an Egg card and the interest free term ends very soon. What happens if I keep the Egg card and the balance on it? I guess the new interest rate will be a rip off. I'm not sure what else to do, as I am not planning to use these cards, I just want to pay off the balance.

Please help!!

Mozette

Have you got an egg money card (the blue one) as the interest rate on this is lower than the egg (green) card. Don't know if egg would be more likely to let you have one as an existing customer, no harm asking.

forbesy100

Thanks for the reply, I haven't looked into the other Egg cards yet. I am considering taking out a Northern Rock loan and use this to pay of the balance. It is fixed at 6.4% and there are no early repayment charges. I think this may be the best option for me at the moment.