Credit Card Balance Transfer Discussion Area 3

zcaprd7

Interesting letter from MBNA today - they are offering a life af balance transfer rate at 8.9% APR to save me from "having to juggle my debts" around.

Not a very competitive offer though, but I nice fall back for those with existing debts if their 0% runs out...

Jake_Barnes

Apolgies if this has been asked before but I've looked around everywhere and can't work the answer.

I have an 8000 loan with Egg running at 7.7.

I'd like to transfer some of this onto my Barclaycard that has 0% interest until June. Barclaycard tell me they'll only balance transfer credit cards.

Does anyone know how the 3500 Barclycard limit can be put into the Egg loan?

Thanks in advance,

Jake.

Reaper

Apolgies if this has been asked before but I've looked around everywhere and can't work the answer.

Yes it does get asked a lot! But don't worry. What you need is a credit card which allows "Super Balance Transfers" i.e. they let you transfer money to your bank account, after which you can use it to pay off your loan. Read this article to get the idea. Then apply for a SBT credit card such as Egg or Mint.

mark3530

I was thinkimg of taking out a "loan" via a credit card balance transfer to an offset mortgage account. The balance transfer would a life of balance interest rate of 3.9 %. The money, say £10,000 could then effectively earn base rate + .75% ( currently 5.5%) without any tax because it is being taken as a reduction on mortgage repayments. The "profit" would be 5.5 less 3.9 = 1.6 % of 1000 per year which is £160 tax free. Can anyone see any flaws in this?

zcaprd7

Other than base rates falling to zero no...

Don't laugh, it happened in Japan...


Also (and check with the card) the 3.9% interest charged each month could then attract a higher (purchase?) interest rate, which could slowly up the 3.9% APR over time?

Reaper

I do this except that I feed the offset with 0% interest credit cards. As they are short term you need to keep shifting the money around but it saves me a lot of money.

Whether you use low or 0% cards remember you have to repay the minimum (at least) each month, which may be as much as 3%. However you could always take money back out of the offset to pay it if you have to. I prefer to pay it out of salary so that I am paying my mortgage off faster.

robbies_gal

dooes anyone the standard charge for balance transfers to a bank acocunt for mbna?

Guzzibear

Replies to a couple of issues.

I have just received a flyer from Capital 1 Platinum "The real deal" for 18 months 0% BT followed by 7% APR on any further BT`s. I have a Cap 1 card already so cannot apply. There do not appear to be any BT fees although the small print is very small. I have not seen this in Martins tips updated last week so it maybe a brand new offer in November.

Lloyds Advance card BT 0% 12 months there is no fee for BT`s within first 6 weeks 2% charged afterwards.

Hope someone finds this useful

Gotabiscuit

dooes anyone the standard charge for balance transfers to a bank acocunt for mbna?

It is 2% of the transaction, capped at £50 (just gone up from £35).

However, there is still much discussion on when MBNA apply this charge - though your first BT as a new customer is normally free.

Gotabiscuit

STOP PRESS  :o

As an edit to my post above, I've just looked on the MBNA website at the t&cs of the platinum plus card here and notice that there is now no upper limit to the charge, though BTs requested online with your application are free.

So in answer to:

dooes anyone the standard charge for balance transfers to a bank acocunt for mbna?

check the t&cs of your particular card carefully.