LEFTY478 Posted September 21, 2007 Report Share Posted September 21, 2007 Right, hope this topic isn't too obscure but I am wondering if any other members have experience of this. A few days ago I got a letter (typical junk mail shot) from Barclaycard. Normally I only open them to remove the name and address bit, which then gets shreaded. Anyway, this time something caught my eye and so I started to read it. The nuts and bolts of it are; they would like to give me up to £10,000 @ a fixed 0.9% until January 2009. The letter includes a write yourself cheque which it seems to claim can be used for any purpose. ie this could be put into savings account - I've found 6.4% gross (about 5.12% nett) fixed for a year. Assuming I took the cash by the end of the month, I could have the capital in a deposit a/c for 15 months before settling the outstanding balance by 31 Dec 2008. The minimun payments would start at about 56 days later ie in November @ appx £500 falling to around £287 towards the end and the outstanding balance would be increased by about 0.08% (0.9%/12 months x 1 month) I think. Can't say I usually believe in there being any 'free' lunches but, I think I stand to make about £570* nett although I'm not very bright and may well be wrong. Are the any Carole Vorderman types out there that can advise? *assuming the min payment are met from my salary, not from the invested capital. Quote Link to comment Share on other sites More sharing options...
bobt Posted September 21, 2007 Report Share Posted September 21, 2007 Not a Carol, dont have the legs for it, as long as you can make sure you will pay it, go for it, they make money as most people cant pay it back. Quote Link to comment Share on other sites More sharing options...
henry d Posted September 21, 2007 Report Share Posted September 21, 2007 I`d be looking at the small print V V closely, does it mention the rate being variable at all ? Quote Link to comment Share on other sites More sharing options...
al4x Posted September 21, 2007 Report Share Posted September 21, 2007 and is there any fixed fee payable, There are occasionally good deals with barclaycard. I've had a 2.9% for the life of the balance running about 4 years now B) Quote Link to comment Share on other sites More sharing options...
LEFTY478 Posted September 21, 2007 Author Report Share Posted September 21, 2007 I`d be looking at the small print V V closely, does it mention the rate being variable at all ? No, it says it a 'fixed rate'. and is there any fixed fee payable, There are occasionally good deals with barclaycard. I've had a 2.9% for the life of the balance running about 4 years now B) It says no fees or handling charges. If I was using it for paying off another credit card balance (which I'm not) the other lender may charge a transfer fee. Quote Link to comment Share on other sites More sharing options...
Dr W Posted September 21, 2007 Report Share Posted September 21, 2007 Give them a call and ask if there are any catches or anything you should be aware of. Seems a seriously good deal given current interest rates, is it a monthly rate or a yearly rate. Quote Link to comment Share on other sites More sharing options...
LEFTY478 Posted September 21, 2007 Author Report Share Posted September 21, 2007 I believe the 0.9% is an Anuallised (sic) Percentage Rate (AER)? Quote Link to comment Share on other sites More sharing options...
Fisherman Mike Posted September 21, 2007 Report Share Posted September 21, 2007 Hasnt the guy from Northern Rock just joined Barclaycard B) Only Joking To good to be true them boys dont usually miss a trick ! Quote Link to comment Share on other sites More sharing options...
hogey Posted September 21, 2007 Report Share Posted September 21, 2007 Hasnt the guy from Northern Rock just joined Barclaycard B) Only Joking To good to be true them boys dont usually miss a trick ! surely its a monthly rate like any credit card and would be over 10% a year hogey Quote Link to comment Share on other sites More sharing options...
Cranfield Posted September 21, 2007 Report Share Posted September 21, 2007 I have a MBNA credit card and they send out a similar thing about four times a year. I understood that the cheques are to be used to pay off other credit/charge cards you may have and the balance transfers to your credit card, at an advantageous rate for a fixed period. They are gambling on you not being able to clear the new balance on your credit card before the end of the "advantageous " period. Thereby increasing your indebtedness to them. I don't think you can go and put it in a savings account, but it would be interesting to try. Quote Link to comment Share on other sites More sharing options...
al4x Posted September 21, 2007 Report Share Posted September 21, 2007 you can as you simply write them out to yourself and pay into your normal bank account. As said though they rely on you either missing a payment or being unable to clear it at the end Quote Link to comment Share on other sites More sharing options...
LEFTY478 Posted September 21, 2007 Author Report Share Posted September 21, 2007 Think I'll have to phone them and check the very, very fine points of this offer. Quote Link to comment Share on other sites More sharing options...
trappa Posted September 21, 2007 Report Share Posted September 21, 2007 It sounds good mate. These things can be done if you look into it. Like its been said, they are banking on you blowing it on a new motor. Its also possible to get one of those offset mortgages, take the money and bank it, then not pay mortgage interest on it. theres also a scam on the balance transfers that you see on the credit card adverts- egg,mint etc. I dont know it precisely Quote Link to comment Share on other sites More sharing options...
trappa Posted September 21, 2007 Report Share Posted September 21, 2007 It sounds good mate. These things can be done if you look into it. Like its been said, they are banking on you blowing it on a new motor. Its also possible to get one of those offset mortgages, take the money and bank it, then not pay mortgage interest on it. theres also a scam on the balance transfers that you see on the credit card adverts- egg,mint etc. I dont know it precisely Quote Link to comment Share on other sites More sharing options...
Mungler Posted September 21, 2007 Report Share Posted September 21, 2007 I did something similar and bought £10k of premium bonds. Not sure if it was worth the aggro (it would have been had I won the jackpot though). Thinking about it, it might hammer your credit rating as it will log on Equifax / Experion as an undischarged balance of over £xk for 12 months. Quote Link to comment Share on other sites More sharing options...
lurcherboy Posted September 21, 2007 Report Share Posted September 21, 2007 Lefty, it is probably all that it seems but there will be the enevitable loophole as there always is. i.e. one late payment, no matter what the circumstances, and the rate will change bigtime. Lots of my friends got caught with the mortgate change fad a few years ago and a few have suffered badly. LB Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.