capital one bt

phoebe03cat

We are being pestered by capital one to bt more funds. Have 6 months left to run at 0%.(Some debt still left on card). Could borrow £3000 and I expect they would up the limit if we requested. Is taking the offer and sticking it in high interest savings viable pls. If so how does it work getting it into bank account. Don't have mule card only egg money and post office.. Or should I forget whole thing? Thanks for any advice.

Bokkens

Firstly don't rush into anything just because Capital One are phoning you.
Make sure you fully understand what you are doing before going ahead as you could end up being charged interest so make sure you know how to avoid the interest charges.
You will need to read up on Martin's credit card articles about credit card shuffle and Balance Transfers and Super Balance Transfers also allocation of payments (How the credit card companies charge interest on your purchases ,BT and cash).
If you have cleared the debt on your Capital One card and have six months left at 0% you only have to watch out for BT fees for moving the £3000.
I don't use Egg personally so you will need another kind person to advise about the use of Egg Money as a BT tool.
You will also need to clear all the debt before the 0% period ends as you will start being charged interest or move the debt to another (new card) which has a 0% offer and keep doing that until all the debt has been repaid.

YorkshireBoy

phoebe03cat wrote: »

Or should I forget whole thing?

Yes!

You'd be borrowing at 3% (the BT fee?), and saving at, say, 6% before tax - but for only 6 months. Therefore your interest earned would be approx 3%, ie net zero. Worse still, your minimum payments will erode your savings balance, meaning you actually lose money. It's a non-starter IMO.

BTW, the Egg Money card *is* a mule card. In fact it's the best there is!

CLAPTON

if they are charging 3% BT fee then a six months 0% it's not worth it.

In practice the best you could get in interest ...taking into account the time to get the BT, transfer to saving a/c then transfer back and then pay the CC off would be 51/2 month so

at 6.25% for 51/2 months on £3000 is £86 gross and £68 after tax whereas 3% BT fee is £90...