Stoozing: Make Free Cash from Credit Cards article discussion

mamazaac

YorkshireBoy wrote: »

The answer lies in the product T&Cs. Start with condition 9.5 (2nd bullet) and then try and find a condition prohibiting positive balances.

Ok, so can transfer to bank account BUT

"We may limit the amount that can be transferred under this Condition and will notify you when you ask to make a transfer. All requests under this Condition are subject to our approval."

Wonder how likely they are to actually do this.

Cannot see any terms prohibiting a credit balance - unless I'm missing something? Anyone else spot such a term?

However, it does say - "You must make sure that the Cards and the Account are not used to carry out Transactions on behalf of, or to receive payments from, any business or other organisation".

Surely making a balance transfer from another credit card company is receiving a payment from a business or other organisation? Presume this doesn't apply as wouldn't this prohibit balance transfers in general, even if you had a debit balance?

I have emailed them to ask whether credit balances are allowed. If not, new customers get 8.9% for life of any balance transfers made before 1 April 2010 with no fee applying, so presumably could transfer from Egg to my current account creating a debit balance, then immediately repay with a balance transfer from Santander card, resulting in just a few days interest while the transfer went through? How do I find out how much per day the interest would be? Do I just multiply the amount borrowed by 8.9% then divide by 365?

Lots of questions I know, many thanks in advance for any clarity given.

CannyJock

stphnstevey wrote: »

Can you pay bills with Egg Money and get cashback? Can you do the same with overpayment of mortgage?

Answered already on the main cc forum and the stoozing site I think

CannyJock

mamazaac wrote: »

Ok, so can transfer to bank account BUT

"We may limit the amount that can be transferred under this Condition and will notify you when you ask to make a transfer. All requests under this Condition are subject to our approval."

Wonder how likely they are to actually do this.

So long as you start with a credit balance and end up with a credit balance you won't have a problem.

mamazaac wrote: »

Cannot see any terms prohibiting a credit balance - unless I'm missing something? Anyone else spot such a term?

Nope.

mamazaac wrote: »

However, it does say - "You must make sure that the Cards and the Account are not used to carry out Transactions on behalf of, or to receive payments from, any business or other organisation".

Surely making a balance transfer from another credit card company is receiving a payment from a business or other organisation? Presume this doesn't apply as wouldn't this prohibit balance transfers in general, even if you had a debit balance?

It means they all have to be personal transactions.

mamazaac wrote: »

I have emailed them to ask whether credit balances are allowed. If not, new customers get 8.9% for life of any balance transfers made before 1 April 2010 with no fee applying, so presumably could transfer from Egg to my current account creating a debit balance, then immediately repay with a balance transfer from Santander card, resulting in just a few days interest while the transfer went through? How do I find out how much per day the interest would be? Do I just multiply the amount borrowed by 8.9% then divide by 365?

If you transfer to your current account it won't be treated as an 8.9% LOB, it'll be treated as a cash advance. You need to arrange the BT on the Santander card first to create a credit balance on your Egg Money then you can withdraw it interest free.

Your daily interest calculation will be roughly right (use 8.56% for a more accurate number).

mamazaac

Thank you for all help given. Have just had reply from Egg and they do permit credit balances on the Egg Money card, so looks like the "card trick" in Martin's stoozing article will work.

One quick question though, in that article Martin says this can only be done with the Egg Money Credit Card, not to be confused with the ordinary Egg credit card. I already have the ordinary one and when I log in and select balance transfers, this also has the option to transfer to my current account (upto 95% of my credit limit). Although haven't specifically asked them, I can't see anything in the t&cs of that card prohibiting credit balances either. Does anyone know why Martin's article says this trick can't be done with the ordinary Egg Card please?

JimmyTheWig

mamazaac wrote: »

Does anyone know why Martin's article says this trick can't be done with the ordinary Egg Card please?

Without checking, I believe the problem would be that transfering money from your ordinary Egg card to your current account would attract a balance transfer fee. So you'd be paying two lots of fees. With egg money there is no fee when transfering a positive balance.

mamazaac

JimmyTheWig wrote: »

Without checking, I believe the problem would be that transfering money from your ordinary Egg card to your current account would attract a balance transfer fee. So you'd be paying two lots of fees. With egg money there is no fee when transfering a positive balance.

This seemed to make sense so I have emailed Egg to check. They say that the only charge for balance transfers to your bank account from the ordinary Egg credit card (unless you are in a promotional period) is the interest you end up paying on the debit balance, which obviously wouldn't apply if transferring a credit balance.

It, therefore, appears that, despite what it says in the MSE stoozing article, you can use the ordinary Egg credit card for the trick of doing a balance transfer to the Egg card and then transferring the resulting credit balance into your bank account.

Can anyone tell me if I'm missing something here, before I make a costly mistake?

Many thanks in advance for any advice.

CannyJock

mamazaac wrote: »

Can anyone tell me if I'm missing something here, before I make a costly mistake?

You've been told our opinion on it a few times now, you've spoken to Egg and they've told you what you were hoping to hear.

Try it and report back your findings, nothing new we can say to you

JimmyTheWig

mamazaac wrote: »

Can anyone tell me if I'm missing something here, before I make a costly mistake?

The only other potential pitfall I can think of is if egg refuse the balance transfer coming in as the card is not designed for positive balances.

mamazaac

JimmyTheWig wrote: »

The only other potential pitfall I can think of is if egg refuse the balance transfer coming in as the card is not designed for positive balances.

Thank you, they have already clarified that, whilst they do not promote it, the card can have a positive balance.

I will try this once my Santander card is set up and post the results.

Thanks to everyone for their advice.

whuuf

Hi, hopefully some of the regulars on this thread can help me with a few quick questions on the egg money card...

Firstly | need to get £8000 off my barclaycard into my current account to pay for a new car using barclays 6.9% balance offer.
I plan to use my egg money card as mule to do this but my credit limit is only £3200 on this card.

Has anyone used the egg card to do multiple transfers over the period of a month. I'm thinking of doing - 3000, 3000, 2000.
I realise it takes around 7 days at a time so should take about a month. But are Egg likely to red flag this?

Also I have read on here that egg money have recently changed their t&cs (I've had the card over 3 years)....Have they introduced any fees for transfers to your bank account or maximum transfer amounts?

Really appreciate any help on these Qs. Thanks.