Always have a SBT handy or the system fails

happyhero

Hi

This may be a silly or obvious question but here goes.

I have been stoozing for 7 months or so now and had an EGG card which has now finished its 0% period. As I change cards and add cards, what is most important, shouldn't I always make sure I have a SBT card so I can get to the money?

I know looking at this first, the answer is not necessarily, as I should try to get new cards to cover existing cards, so that all I ever do is BT's and not SBT's, but a recent failed application has meant that I may not be able to cover a previous card in time and thus have to give the money back until I can get another card to bump my stooz back up.

Therefore unless I have a SBT card handy, my next card will not allow me to get to it's funds, unless my next card is an SBT card, thus dictating that even though there are better offers out there, I must apply for what ever SBT I can get hold of. Or have I got it wrong somewhere?

Any answers appreciated.

Reaper

You should certainly hold onto your Egg card both for the repeat offers and so you can use it as a mule for other cards that do not allow SBTs. Furthermore as you did not take it out recently it has no BT fees on it.

While in theory it is nice to just keep rotating debts onto new cards it is not always possible as the existing debt can make it hard to get new cards. Your Egg card will allow you to restart stoozing if you find you have to pause for a moment.

I plan to do just that as my stooze level is so high I doubt I can get any more cards with good limits to replace them. Instead this time round I plan to just pay the bulk of them off, cancel them, wait until the cancelation is registered by the CRAs and then start applying again, routing the money through my Egg card.

happyhero

Thanks for the info, but what would happen if I used my EGG for a SBT now, that it is outside the 0% offer period, ie say I took out an RBS card and BT to the EGG for an imaginary £10,000 debt on the EGG(if they allowd that much of course), and the straight away SBT from EGG to current account?

Would I be charged anything other than BT charges by RBS, ie would EGG charge for anything?

YorkshireBoy

happyhero wrote:

Thanks for the info, but what would happen if I used my EGG for a SBT now, that it is outside the 0% offer period, ie say I took out an RBS card and BT to the EGG for an imaginary £10,000 debt on the EGG(if they allowd that much of course), and the straight away SBT from EGG to current account?

Two options...

Using Positive Balances on Egg
1. Best to start with a zero balance on Egg.
2. BT £10K from Egg to RBS.
3. Egg goes into a POSITIVE £10K balance.
4. BT £10K from current account to Egg (bear in mind new 95% rule).
5. Egg returns to zero balance.
6. Note that this method may attract the attention of the money laundering department!

Conventional Method
1. BT £10K from current account to Egg (bear in mind new 95% rule).
2. Egg balance starts to attract 14.9% interest
3. BT £10K from Egg to RBS
4. Both BT operations done in one statement period should mean no/minimal interest applied

happyhero wrote:

Would I be charged anything other than BT charges by RBS, ie would EGG charge for anything?

Egg won't charge a BT fee. AFAIK RBS don't charge a fee either, but I've not checked their T&C's lately.

Careful_ly

Yorkshire boy, are you sure egg no longer charge a balance transfer fee? On the 16th July the email to say that the egg statement was available said that the conditions of the card change from 1st August.
Condition 7.2 says that 2% fee on balance transfers max £50
Hope you are right and I am wrong

YorkshireBoy

Careful_ly wrote:

Hope you are right and I am wrong

I'm very happy to confirm that (as far as I know) I am right and you are wrong!

The 2% (max £50) BT fee only applies to post May 1st applicants (at the moment!). The exact wording on the Egg FAQ section states...

===============
Is there a fee for balance transfers?
For all new customers who apply after 1 May 2005 a handling fee of 2% will be applied to balance transfers made in your introductory balance transfer period (except where we tell you otherwise). The maximum handling fee is £50.
===============

I got my "your statement is ready" around the same time as you, but mine made no mention of the 1st August.

monki_man

Hi YorkshireBoy thanks for replying in the other link about second stage of stoozing. Can you tell me what is meant by 95% rule? Is it the 95% maximum limit of your limit on Egg side?

happyhero

Thanks guys for all the info.

A couple of questions though YorkshireBoy (thanks for all your answers on All my posts in case I haven't thanked you yet), you keep saying bear in mind 95% rule, well I have a £12,000 limit with them so to clarify that means I deal with 95% of £12,000, yes?

Using the positive balance method how would that effect me transfering the money into my current account, ie if I got £12000 out of RBS and put £12000 on my EGG which also happens to be its limit, would I then only be able to take 95% of that? But what about the positive bit left on the EGG? I notice in the past when I got £25000 out of FD and put it through EGG that even though I was way in credit with EGG I had to do it in 3 goes because they wont let you transfer more than your limit in one day.

Also you mention the money laundering department, what difference would it make to, them or you, if they saw what you were doing and realised it was nothing dodgy, or is this dodgy in their eyes?

YorkshireBoy

monki_man wrote:

Hi YorkshireBoy thanks for replying in the other link about second stage of stoozing. Can you tell me what is meant by 95% rule? Is it the 95% maximum limit of your limit on Egg side?

From the Egg FAQ section - right at the very bottom of the balance transfers questions...

http://new.egg.com/visitor/0,2388,3_11084--View_152-bID_EcBalTraFaq-dva_1,00.html

================
How much can I balance transfer?
You can ask to transfer any amount, as long as it's over £100 and less than 95% of your available credit limit.
================

YorkshireBoy

happyhero wrote:

...you keep saying bear in mind 95% rule, well I have a £12,000 limit with them so to clarify that means I deal with 95% of £12,000, yes?

Yes, but if you do two successive BT's to your Egg card, you will get to around 99% of your available credit limit, ie 95% of the credit limit and then 95% of the remaining 5% of your available limit. Should be able to get to a point where you just leave £100 or so available on the card.

happyhero wrote:

Using the positive balance method how would that effect me transfering the money into my current account, ie if I got £12000 out of RBS and put £12000 on my EGG which also happens to be its limit, would I then only be able to take 95% of that?

Yes, but see above.

happyhero wrote:

Also you mention the money laundering department, what difference would it make to, them or you, if they saw what you were doing and realised it was nothing dodgy, or is this dodgy in their eyes?

Putting Egg into a positive £12K balance would be an unusual activity on a credit card, and this could trigger their monitoring systems. Might be best to BT off the card first and then repay with the RBS funds.

happyhero

Ok YorkshireBoy got it all clear now.

But one thing...... .......you'll be thinking I'm "The Posting Pest", come to haunt you, keep banging on about this, but I'm curious.

The money laundering department, what difference would it make to, them or you, if they saw what you were doing and realised it was nothing dodgy, or is this dodgy in their eyes?

Surely they are already interested in me after what I did with £25,000 from my FD.

Sorry I promise I wont ask anymore about this after this one YorkshireBoy.