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    • ARS
    • By ARS 10th Nov 17, 12:05 PM
    • 3Posts
    • 1Thanks
    ARS
    Advise on how Balance Transfers work
    • #1
    • 10th Nov 17, 12:05 PM
    Advise on how Balance Transfers work 10th Nov 17 at 12:05 PM
    Hi there,


    Forgive me if this has already been asked a 100 times before but I'd like to know how Balance Transfer credit cards work.
    I'm considering this at the moment but have never done it before, and I am nervous about money and debt, so have any one actually done this and how does it work?




    Many thanks in advance


    ARS
Page 1
    • StopIt
    • By StopIt 10th Nov 17, 12:14 PM
    • 1,371 Posts
    • 1,169 Thanks
    StopIt
    • #2
    • 10th Nov 17, 12:14 PM
    • #2
    • 10th Nov 17, 12:14 PM
    A bit of a read, but fully covered here: https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards


    Basically, you have a balance on one card, the new card pays that balance off, and you have a new card to pay off, normally at a lower APR for a certain period of time.


    ViolaLass: This is a forum for advice, not for telling people to use Google!
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • bigadaj
    • By bigadaj 10th Nov 17, 1:10 PM
    • 10,673 Posts
    • 6,974 Thanks
    bigadaj
    • #3
    • 10th Nov 17, 1:10 PM
    • #3
    • 10th Nov 17, 1:10 PM


    ViolaLass: This is a forum for advice, not for telling people to use Google!
    Originally posted by StopIt

    Well it's one alternative.
    • ViolaLass
    • By ViolaLass 10th Nov 17, 1:19 PM
    • 5,073 Posts
    • 7,043 Thanks
    ViolaLass
    • #4
    • 10th Nov 17, 1:19 PM
    • #4
    • 10th Nov 17, 1:19 PM

    ViolaLass: This is a forum for advice, not for telling people to use Google!
    Originally posted by StopIt
    It was my advice.
    • ARS
    • By ARS 10th Nov 17, 1:24 PM
    • 3 Posts
    • 1 Thanks
    ARS
    • #5
    • 10th Nov 17, 1:24 PM
    • #5
    • 10th Nov 17, 1:24 PM
    Hi StopIt,


    Thank you for getting back to me.
    I've read through the page on MSE in the past and it's one of the reasons I am considering moving cards to a new provider.


    I had assumed that you used the new one to pay of the old one, and that this normally has to happen within 90 days.




    If you needed to use the new card for a emergency say, would you only pay interest in that new spend or would it nullify the 0% deal and cause you to have to pay interest on the whole amount (new + transfered balance)?




    Many thanks for you help with this.


    ARS
    • Candyapple
    • By Candyapple 10th Nov 17, 1:40 PM
    • 2,472 Posts
    • 1,848 Thanks
    Candyapple
    • #6
    • 10th Nov 17, 1:40 PM
    • #6
    • 10th Nov 17, 1:40 PM
    Please list all credit card limits along with outstanding balances and also
    names of card providers.

    Do you have any other loans / overdraft / car finance etc?

    Do you have any late payments / defaults / CCJs?

    What is your annual salary?

    Are you on the electoral roll (does it show on all 3 files?)

    Do you have any other closed / settled accounts in your history?

    Do you have many other 'credit' accounts showing on your files such as bank account / mobile phone etc.?

    Have you made any credit applications in the last 12 months?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • StopIt
    • By StopIt 10th Nov 17, 1:45 PM
    • 1,371 Posts
    • 1,169 Thanks
    StopIt
    • #7
    • 10th Nov 17, 1:45 PM
    • #7
    • 10th Nov 17, 1:45 PM
    Hi StopIt,


    Thank you for getting back to me.
    I've read through the page on MSE in the past and it's one of the reasons I am considering moving cards to a new provider.


    I had assumed that you used the new one to pay of the old one, and that this normally has to happen within 90 days.




    If you needed to use the new card for a emergency say, would you only pay interest in that new spend or would it nullify the 0% deal and cause you to have to pay interest on the whole amount (new + transfered balance)?




    Many thanks for you help with this.


    ARS
    Originally posted by ARS

    Try to avoid using a balance transfer card for purchase.


    Although as long as you pay the purchases off in full from the next statement you should avoid interest, it's a risk that you don't, and then end up getting confused. If you need a card for that reason, apply for a separate purchase card.


    You usually have a time limit to transfer the balances to the new card so it is prudent to apply when you need one.


    ViolaLass: This is a forum to help others, and be welcoming to new members, including those asking questions even if they've been asked before. There are resources here you could have linked to, instead of telling them to go away and Google something.
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • redux
    • By redux 10th Nov 17, 1:45 PM
    • 17,502 Posts
    • 22,351 Thanks
    redux
    • #8
    • 10th Nov 17, 1:45 PM
    • #8
    • 10th Nov 17, 1:45 PM
    If you needed to use the new card for a emergency say, would you only pay interest in that new spend or would it nullify the 0% deal and cause you to have to pay interest on the whole amount (new + transfered balance)?
    Originally posted by ARS
    No, it will still be 0% on the balance transfer part.

    There is interest on the purchase(s) though, even if you pay this amount off in full by the due date written on the statement.

    Keep spending modest, and you could minimise the interest by paying fully for spending items on the day after the statement instead of waiting towards the due date.

    Don't pay spending back before the statement though, as received payments go towards items already on a statement, in other words the balance transfer if you're too early.
    • ARS
    • By ARS 10th Nov 17, 1:59 PM
    • 3 Posts
    • 1 Thanks
    ARS
    • #9
    • 10th Nov 17, 1:59 PM
    • #9
    • 10th Nov 17, 1:59 PM
    Hi StopIt, redux and CandyApple,


    Thank you for getting back to me so quickly, your advise is most welcome and has been very useful.


    I'm going to use the MSE CC Eligibility Checker now to see what options are available to me.




    Many thanks for all your help with this.


    ARS
    • molerat
    • By molerat 10th Nov 17, 2:26 PM
    • 17,323 Posts
    • 11,514 Thanks
    molerat
    Don't pay spending back before the statement though, as received payments go towards items already on a statement, in other words the balance transfer if you're too early.
    Originally posted by redux
    Although that rule of thumb can vary between different providers i.e. MBNA.
    www.helpforheroes.org.uk/donations.html
    • ViolaLass
    • By ViolaLass 10th Nov 17, 3:07 PM
    • 5,073 Posts
    • 7,043 Thanks
    ViolaLass
    ViolaLass: This is a forum to help others, and be welcoming to new members, including those asking questions even if they've been asked before. There are resources here you could have linked to, instead of telling them to go away and Google something.
    Originally posted by StopIt
    Indeed, I did link to a resource that answered the minimal questions mentioned in the opening post. MSE was the third or so link within that.

    I dispute that what I did would not help and while I did not welcome the OP with open arms and a glass of wine, I didn't tell them to go away either.

    A question like "how do these work?" is so vague anyway, any number of answers might have been valid. I stand by mine.
    • RG2015
    • By RG2015 10th Nov 17, 3:37 PM
    • 476 Posts
    • 215 Thanks
    RG2015
    ViolaLass: This is a forum for advice, not for telling people to use Google!
    Originally posted by StopIt
    I can see both points of view. However Google is much better for searching than the MSE search function.

    In fact I often search Google for a banking answer and it returns several MSE forum answers that are much more focused than the same search in MSE.
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