Credit Card Balance Transfers
- Thread starter nero120
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nero120 said:
How much is the limit on your Egg card? I suppose a good estimate would be around the same ammount.
starscream said:
Applied for it today, so haven't got the card yet. Haven't been given a limit as yet, I guess I'll get it with the card. However, the limit on my morgan stanley card (for all purchases) is only £4800.
What are the chances of getting a £15000 balance transfer as McDaniel suggested?
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nero120 said:
It depends on so much. What is your age, salary and do you have a mortgage?
Soldato
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Unless you have a really big income, there are very few credit card companies handing out 5 figure credit limits on account opening these days, especially the 0% lot. The last few I've had started with a modest limit on opening, then ramped it up as soon as the offer period is over.
IME Morgan Stanley are fairly generous with their limits compared to others, I'd be surprised if any of the 0% give you significantly more than that on opening unless your circumstances have improved significantly since you took it out.
IME Morgan Stanley are fairly generous with their limits compared to others, I'd be surprised if any of the 0% give you significantly more than that on opening unless your circumstances have improved significantly since you took it out.
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nero120 said:
Your age and lack of mortgage will be the things that told you off the really big credit limits. From cards I've seen issued in the past, I would guess at around 6-8k.
starscream said:
Thanks for the info. So, on the card application should I write £20,000 as the balance transfer amount anyway and see if they allow it? I guess they will tell me after that how much of a balance transfer they will allow, right?
Just remember that when you transfer the balance onto the card you'll also get charged 2% of the amount transferred as the fee for doing this. The card co's started this ages ago to limit people doing similar things to what you're doing.
I'd reckon Egg will offer no more than £5K as your inital limit, but likely less than that as they don't tend to like starting poeople with high limits. As has been said they start low then ramp them up after special offers finish, or you display the ability to spend high on the card and pay it off (ie not balance transfer it) promptly.
I'd reckon Egg will offer no more than £5K as your inital limit, but likely less than that as they don't tend to like starting poeople with high limits. As has been said they start low then ramp them up after special offers finish, or you display the ability to spend high on the card and pay it off (ie not balance transfer it) promptly.
stu.artd said:
Not all cards charge for balance transfers.
Note, I dont want to balance transfer from an egg card, I want to balance transfer to an egg card from another card (with 0% interest on balance transfers for 6 months and no charge for BT)
nero120 said:
Egg do charge for balance transfers onto their card, they charge 2.5% of the amount transferred during the initial 0% stage. They don't charge the fee on balance transfers made at their standard APR but that's not what you're talking about doing. It's in their FAQ page.
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stu.artd said:
Im not sure we are on the same page, just to be clear, the money will go from the credit card with a good 0% interest on BT and no BT charge, onto the Egg Money account. From there, into a high interest savings account. I can't find anywhere that it says that you are charged for a positive balance on Egg Money?
Soldato
seriously, the amount you'll make from this will be pretty insignificant as to warrant it (imo) pointless - decent savings accounts will offer what, 5% APR? Factor in the 2-2.5% charge for transfers you would have to pay after the initial period runs out, if you wanted to carry it on ast the 6 months and then thats before the tax man takes a cut of your 5% savings account. You'll barely stay above inflation, and the length of time you'll be doing it over will mean it'll be pretty pointless (all imo of course)
The only way it may offset the worth is to use a CASH ISA - but then you're limited to a pretty small amount each year anyway. Think I was allowed £7k a year, thats so much cash ISA, and the rest as tax free share options...
The only way it may offset the worth is to use a CASH ISA - but then you're limited to a pretty small amount each year anyway. Think I was allowed £7k a year, thats so much cash ISA, and the rest as tax free share options...
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Pug said:
True, but every little helps as they say. Not to mention it helps me stay financially savvy and it will build up as my credit limit increases. I think at the moment, that's an extra £500 before tax. Not much, but it's (relatively) free money!
I've already done these for this financial year, just looking for ways i can maximise my income.
nero120 said:
I think I get what you mean. You're going to be transferring debt from a credit card to an egg money account as that incurs no transfer fee.
I had thought you were getting an Egg credit card and transferring debt from another card onto that. I hadn't consdiered Egg Money as you can't transfer from an Egg credit card into an Egg money account.
How are you going to get the debt/balance to transfer from the first card though ? Most cards don't let you withdraw to a bank account without fees, and you can't be doing it using Egg Money as that's only coming into action once you have an initial balance to transfer from somewhere else.
stu.artd said:
You can do a balance transfer onto a 0% BT card, from the Egg Money (incurring a positive balance in the egg money account and a negative balance on the 0% card). Then, you can transfer the positive balance off the Egg Money into a high interest savings account leaving a 0 balance on the Egg Money account. You keep up minimum payments on the 0% card from your savings account to avoid paying interest.
nero120 said:
That explains that then
I'd double check the T's and C's regarding the no transfer fee on the 0% card though, as they may view that as something other than a standard balance transfer (maybe a money transfer) due to it going to a non credit card account.
stu.artd said:That explains that then
I'd double check the T's and C's regarding the no transfer fee on the 0% card though, as they may view that as something other than a standard balance transfer (maybe a money transfer) due to it going to a non credit card account.
Definitely. But, on the whole there are a few cards that do not charge for a BT, regardless on what other credit card it goes. Only if it goes stright into an account do you have to be extra wary.
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