Egg card anniversary transfer - can't work out if should do or not

BlondeHeadOn

I am trying to work out whether it is worth me using my Egg card anniversary transfer or not, and I can't get my head around the maths.

Basically it would hep me enormously to have a loan of £7500 at 0% for 5 months, and I will be able to pay it all off at the end of June. I am struggling to work out how much it will cost me though. I have worked out as below:

Transfer £7500 onto Egg card, with handling fee of 2.5% = cost of £187.50.
0% for 5 months on balance = 0

BUT I know there is something funny about the handling fee, in that interest may be charged on this? And I can't find this in the terms and conditions I have from Egg - can someone enlighten me please? I know this handling fee is the last thing to be paid if I pay off the balance, but do I get charged more for this then the rest?

And can anyone tell me how much in total this balance transfer is going to cost?

Thanks in advance for any help!!

BlondeHeadOn

Anyone ?

Any help would be great!

DeepSporran

I don't know whether the BT fee will attract interest or not, but to be honest , it won't cost you a great deal even if it does.

Suppose your interest rate is 16.9% (I've no idea if this is your rate, but that's a typical rate for Egg Visa).

Then 5 months interest on £187.50 is :

187.5 x 16.9/100 x 5/12

which amounts to £13.20.

So it would increase the overall cost to £200.70.

BlondeHeadOn

That definitely makes this worth doing - many thanks!

I couldn't work out if I had missed some major charge her, but if not I will transfer the money - this will give me a very useful breathing space until June!!

Thank you DeepSporran (love the name by the way!)

:T :T

johnmoney05

As I know, the BT free only attracts interest after 3 months, so long as you pay off the BT free (£187.5) before the end of 3 months free interest period for purchase. You are alright. Again this is only what I understand. And I just did the BT last week. And the money in my saving account now. (promotion for those OLD Egg customers)

YorkshireBoy

johnmoney05 wrote: »

As I know, the BT free only attracts interest after 3 months, so long as you pay off the BT free (£187.5) before the end of 3 months free interest period for purchase. You are alright. Again this is only what I understand. And I just did the BT last week. And the money in my saving account now. (promotion for those OLD Egg customers)

OP is talking about the anniversary BT offer. The introductory 0% on purchases offer is long gone.

I'm not sure Egg are still charging interest on BT fees nowadays? Anyway, I don't think what you propose would work due to the 'order of payments'.

johnmoney05

YorkshireBoy wrote: »

OP is talking about the anniversary BT offer. The introductory 0% on purchases offer is long gone.

I'm not sure Egg are still charging interest on BT fees nowadays? Anyway, I don't think what you propose would work due to the 'order of payments'.

Forgive me. Are you Egg card customer?
Do you know the old Egg card customer received a new offer recently?
0% for up to 12 months on balance transfers and 0% for up to 3 months on purchases (0% untill 6 Feb 2009 on balance transfers and 0% untill 6 May 2008 on purchases)
Unless OP is not talking about the same offer as I received.

As to 'order of payments', you have to wait and see. It certainly worked with my Tesco credit card and ex-Conran card. I never try with Egg yet. But anyway, that charge is not much. Let you know after 4 months.

benf90

They no longer charge interest on the BT fee, they stopped doing this back in Feb 2007.

To Johnmoney05; the OP was talking about the anniversary offer which pretty much every customer will get (the 'anniversary' of the account being opened)... 0% for up to 5 months. The offer you're referring to is just one of the extra offers that Egg put on customers accounts every so often, not all customers get those.

johnmoney05

benf90 wrote: »

They no longer charge interest on the BT fee, they stopped doing this back in Feb 2007.

To Johnmoney05; the OP was talking about the anniversary offer which pretty much every customer will get (the 'anniversary' of the account being opened)... 0% for up to 5 months. The offer you're referring to is just one of the extra offers that Egg put on customers accounts every so often, not all customers get those.

Oh, I thought all old Egg customers got the same offer like me. Because there was only a leaflet in the envelope which Egg sent me.

By the way, I was charged BT fee at 2.5%.