Sonycard 0.00% on credit card cheques?

chimpanzee23

I have been accepted for the sonycard. I was looking at the rates and it says 0.00% for credit card cheques for 12 months

Does this mean I can stooze the credit limit and just make the minimum payment

Thanks

lisyloo

Yes, but there's a 3% fee, so you'd have to work out how much income tax you'd pay on the interest on your stooze pot to work out whether it would cover your 3% or if it would make it worthwhile.

YorkshireBoy

MBNA (who run the Sony card) limit your (S)BT's to 95% of your credit limit, thereby allowing room for the fee - which will be collected with the first minimum payment.

However, why bother with cheques? They may take a while to arrive...you then have to post them or pay a visit to your bank. Why not ring and ask them to BT your overdraft to the card instead...it'll be much quicker. Ask them to confirm it'll be at 0%.

As lisyloo says though, do your sums (www.whatsthecost.com/stoozing.aspx) because even a 6% paying savings account will make you less than 1.6% after basic rate tax is deducted.

Savings in a non tax paying partners name, ISA's and offset mortgages are the only useful vehicles for 12 month 3% uncapped fee deals in my opinion.

chimpanzee23

What would be the best way to do it?

Do I phone up and ask for a cash transfer to my bank account and them confirm with them it is 0.00%

I don't have any other cards so i can't do a balance transfer

YorkshireBoy

chimpanzee23 wrote: »

Do I phone up and ask for a cash transfer to my bank account...

Not exactly, but that's what you'll get.

Get the card up and running. Then give them a ring and say you have an overdraft you'd like to transfer to the card, and ask if they would transfer this (which means they'll send money directly to your current account).

As I say, check it's still at 0% (it should be but it's best to ask, since MBNA have a strange 'money transfer' definition - which doesn't qualify for 0% - in some of their cards' T&C's) and simply give them your sort code and account number.

I wouldn't be tempted to give them your savings account details. Instead, I'd give them the same details as the account you're setting up the DD from...you are setting up a DD?

chimpanzee23

I have phone them and they have confirmed it is 0.00% on the money transfer for 12 months.

There is a 3% handling fee (£78) so I will make about £50 in a high interest savings account after the fee, better than nothing!

Have I done everything right?

kanchhelskis

hi ya i got of this today and transfered money to my current account, will it be in there tomorrow? thanks in advance.