Money Transfer

worriednoob

Thank you very much grumbler. From looking at the list of credit cards, it seems that the best two are:-

MBNA - 29 MONTHS 0% WITH 4% FEE
AA* - 6.9% UNTIL DEBT'S REPAID, 2% FEE

The problem I have is that I don't understand how to calculate approximately what I'd have to payback in total, assuming that I borrowed £5k for 12 months. Could you please tell me if I have calculated this correctly? :-

MBNA - Only £200 (4%) one off fee and no other extras other than minimum payment for the next 29 months

AA - £100 (2%) one off fee + £345 for 12 months on top of minimum payments

Rosco32

I've had several MBNA cards over the Years. Minimum payment has always been 1% of the outstanding balance. Their platinum card has 0% for 29 months on a money transfer, with a 4% fee (£200 for a £5k money transfer). You'll have 29 months before you begin paying any interest.


Hope that helps

MallyGirl

you need to read the T&Cs - Post Office is 2.5% of outstanding balance which makes a big difference to how much value you get out of the balance transfer. You also need to look at the fee.
so 1% repayment percentage means you pay back £50 in 1st month on £5,000, £49.50 in 2nd month etc.
2.5% means you pay back £125 in 1st month on £5,000, £121.88 in 2nd month etc.
Assume 4% BT fee - so your actual borrowing is £5,200
After 12 months at 1% repayment you would still owe £4,609
After 12 months at 2.5% repayment you would still owe £3,837

If you are going to pay it off in a short timescale you don't want a life of balance rate you want a low repayment percentage, low SBT fee, 0% card.

worriednoob

Hiya MallyGirl, thank you very much for helping me. I read your post a little too late as I've now been approved by MBNA.

MallyGirl

In that case just keep up the minimum payments for 28 months and do something useful (money generating) with the payoff money.
I would probably have gone for the Tesco Low BT Fee Card if I could pay off in a year.

Rosco32

Stick with the MBNA card and congrats on been approved, I hope you got the £5k you wanted?

grumbler

worriednoob wrote: »

MBNA - 29 MONTHS 0% WITH 4% FEE
AA* - 6.9% UNTIL DEBT'S REPAID, 2% FEE

The problem I have is that I don't understand how to calculate approximately what I'd have to payback in total, assuming that I borrowed £5k for 12 months.

If it's 0% and you pay it off at the end of 0% period, you pay the original amount + the BT fee.

Could you please tell me if I have calculated this correctly? :-

MBNA - Only £200 (4%) one off fee and no other extras other than minimum payment for the next 29 months

AA - £100 (2%) one off fee + £345 for 12 months on top of minimum payments

I don't see much to check with MBNA.
For AA my estimation of the interest over 12 months is £333.

In you calculation you forgot to add £100 to the balance and didn't take minimum monthly payments into account that gradually reduce the balance.

worriednoob

@ Mallygirl - I've got it now, so nevermind

@ Rosco32 - Thanks...unfortunately they've only given me a £1700 limit. They said that once I use it on a regular basis, that limit should go up in time....it is very low though.

@ Grumbler - Thanks very much for the breakdown. I've been told that assuming I do a £1600 money xfer, I have to make a minimum payment of £25pm...but looking at it now, that doesn't sound right to me.

Rosco32

Oh no! Still, better than nothing I guess.

worriednoob

True. So am I right in thinking that the Post Office has the best credit card for money transfers? On their site I've found a credit card that does balance transfers, but no mention of money transfers.