barclays or abbey

  • Thread starter haroldsmith20032003
  • Start date

H

haroldsmith20032003

Out of Barclays or Abbey National, can anyone recommend which credit card
is better? I think Abbey use MBNA - is that right?

Thanks.

(e-mail address removed)
 
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A

Alex Butcher

http://news.bbc.co.uk/1/hi/business/3194902.stm

'Barclays boss Matt Barrett told astonished MPs that he didn't borrow on
credit cards as it was "expensive" and no way to fund "chronic
borrowing".'
OTOH, Barclaycard offers an extra year's guarantee on most goods purchased
with it, and doesn't cost a bean if you pay it off at the end of each
month (which is the only smart thing to do with a credit card anyway).
Best Regards,
Alex.
 
J

Jonathan Bryce

criticaldensity said:
'Barclays boss Matt Barrett told astonished MPs that he didn't borrow on
credit cards as it was "expensive" and no way to fund "chronic
borrowing".'
And he's absolutely right.
 
D

DP

We found Abbey National very inefficient. I haven't use Barclays for a
while. We've been very happy with Nationwide.
 
J

John

We found Abbey National very inefficient. I haven't use Barclays for a
while. We've been very happy with Nationwide.
I'd never go back to Barclays. Damn right bunch of evil shits. I've had an
Abbey (National) account for over 13 years - never had any problems
what-so-ever.
 
T

Tim

pay it off at the end of each month
(which is the only smart thing to do with a credit card anyway).
Nope - surely an *incredibly* "smart thing to do", is to take them up on
their offer of 0% on balance transfers - and transfer to the highest-paying
savings account you have access to!! ;-)
 
A

Alex Butcher

Nope - surely an *incredibly* "smart thing to do", is to take them up on
their offer of 0% on balance transfers - and transfer to the highest-paying
savings account you have access to!! ;-)
Out of interest, how would you do that? Cash advance/credit card cheque
from one card, then transfer the balance to a 0% CC?

Best Regards,
Alex.
 
T

Tim

Out of interest, how would you do that? Cash advance/credit card cheque
from one card, then transfer the balance to a 0% CC?
I am aware of (at least) two CCs which allow "balance transfers" directly to
a standard bank account (supposedly to pay off an overdraft, but there's no
requirement that there's actually an overdraft on the account already!).

You need to check with the particular CC concerned as to how best to make
the transfer - a strict "cash advance" may incur extra charges so you'd want
to steer clear of those (this happens sometimes on CC cheques too).

You can always "bounce" a balance transfer from a CC which doesn't allow
direct transfers to bank accounts, to another CC that does, then on to your
bank account....
 
A

Alex Butcher

I am aware of (at least) two CCs which allow "balance transfers" directly to
a standard bank account (supposedly to pay off an overdraft, but there's no
requirement that there's actually an overdraft on the account already!).
Nice. ;-)
You need to check with the particular CC concerned as to how best to make
the transfer - a strict "cash advance" may incur extra charges so you'd want
to steer clear of those (this happens sometimes on CC cheques too).
That's what I was thinking; the cash advances and CC cheques I've seen
from MBNA start accruing interest immediately.

Best Regards,
Alex.
 
J

Jonathan Bryce

Tim said:
You can always "bounce" a balance transfer from a CC which doesn't allow
direct transfers to bank accounts, to another CC that does, then on to
your bank account....
And the typical 1.5% - 2% cash advance charge on that account would eat up
any interest you would make on the deal.
 
T

Tim

And the typical 1.5% - 2% cash advance charge on that account would eat up
any interest you would make on the deal.
Which is why you only do it with cards that *don't* charge the extra 1.5-2%
!! :)
 
T

Tim

That's what I was thinking; the cash advances and CC cheques I've seen
from MBNA start accruing interest immediately.
It's not the "pay interest from day 1" factor you need to worry about - an
extra few weeks interest at 0% APR is still no interest! - it's the charges
of the sort of "2% of amount transferred" you need to steer clear of.
 
T

Tim

Which is why you only do it with cards that *don't* charge the extra 1.5-2%
!! :)
Although an effective tax-free return of (say) 4.5%pa for 6 months (around
2.25% overall) would cover most "1.5-2%" charges and still leave a little
profit anyway....
 
J

Jonathan Bryce

Tim said:
Although an effective tax-free return of (say) 4.5%pa for 6 months (around
2.25% overall) would cover most "1.5-2%" charges and still leave a little
profit anyway....
Well, the best 6 month fix I can find is 4%, which I make as 1.98% over 6
months.

If you found a card that charges 1.5% on the cash advance, that would make
you £14.40 on the deal if you used your cash ISA allowance for the year.
Subtract from that the cost of postage / telephone calls etc. Look at how
long it takes you to organise it and consider whether or not you would be
better off spending the time working for the money.

Most of my card cos have written to tell me that they are increasing the
cash advance fee to 2%, not that I care because if I want cash, it comes
out the current account.
 
T

Tim

Well, the best 6 month fix I can find is 4%, which I make as 1.98% over 6
months.

If you found a card that charges 1.5% on the cash advance, that would make
you £14.40 on the deal if you used your cash ISA allowance for the year.
Subtract from that the cost of postage / telephone calls etc. Look at how
long it takes you to organise it and consider whether or not you would be
better off spending the time working for the money.
You are obviously not doing it right!

Your calc: ((1.04^0.5-1) - 0.015) x 3000 = £14.40. Not worth the trouble.
My calc: (0.045 x (6/12) - 0.0) x 15000 = £337. Even 2 hour's work makes
you over £160 per hour, *tax free*!! (equivalent to £280ph to HRTP)
[I don't know how much money *you* earn per hour, but I have trouble making
that much over £250ph gross... ;-) ]

First: use a card that does *not* charge a (1.5, 2%) fee for balance
transfer.
Next: don't use an ISA - you can't save enough there. Use an offset
mortgage - mine currently has a rate of 4.5% (if interest rates do rise in
the next 6 months, then it's even better!).


.... and even if you *do* need to pay a 1.5% fee: (0.045 x (6/12) - 0.015) x
15000 = £112. If you think that it's not worth over £100 to do a quick
application form & telephone call, then you must be earning a huge amount of
money - so good luck to you, carry on with that instead.


Most of my card cos have written to tell me that they are increasing the
cash advance fee to 2%, not that I care because if I want cash, it comes
out the current account.
Don't use a "cash advance with fee" - use a "fee-free balance transfer".
 
J

Jonathan Bryce

Tim said:
You are obviously not doing it right!

Your calc: ((1.04^0.5-1) - 0.015) x 3000 = £14.40. Not worth the
trouble.
My calc: (0.045 x (6/12) - 0.0) x 15000 = £337. Even 2 hour's work makes
you over £160 per hour, *tax free*!! (equivalent to £280ph to HRTP)
[I don't know how much money *you* earn per hour, but I have trouble
[making
that much over £250ph gross... ;-) ]

First: use a card that does *not* charge a (1.5, 2%) fee for balance
transfer.
Next: don't use an ISA - you can't save enough there. Use an offset
mortgage - mine currently has a rate of 4.5% (if interest rates do rise in
the next 6 months, then it's even better!).


... and even if you *do* need to pay a 1.5% fee: (0.045 x (6/12) - 0.015)
x
15000 = £112. If you think that it's not worth over £100 to do a quick
application form & telephone call, then you must be earning a huge amount
of money - so good luck to you, carry on with that instead.

Well, I don't have an offset mortgage because I don't earn enough to be able
to buy a house, so ISAs are my only source of tax free interest.

What I didn't include in my calculations is the fact that I can save more
than my ISA allowance each year without the need to borrow it on credit
cards.

My calc would then become ((1.032^0.5-1) - 0.015) x 3000 = £2.62.
I could do it with bigger sums - £15k would bring it up to £13.11, but still
not worth the hassle.
 
J

Jonathan Bryce

Jonathan said:
My calc would then become ((1.032^0.5-1) - 0.015) x 3000 = £2.62.
I could do it with bigger sums - £15k would bring it up to £13.11, but
still not worth the hassle.
Oh, and the minimum repayment of 2%-3% per month would reduce that a bit.
 
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T

Tim

My calc would then become ((1.032^0.5-1) - 0.015) x 3000 = £2.62.
I could do it with bigger sums - £15k would bring it up to £13.11, but still
not worth the hassle.
Then why don't you do it with a card that will *not* charge you a fee??

Even your latest calc would become (adjusting to the £15K you said you could
do) :- ((1.032^0.5-1) - 0.0) x 15000 = £238.11.

If you can do without the extra £238 you'd get, will you please send it to
me instead? :)
 

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