Money transfer offer from existing credit card- good or bad idea?

Hi all,

Just looking for some opinions on whether it's worth taking Tesco Bank up on an offer they have sent in the post....

My situation is as follows:

Currently have a balance of around £5000 on a Barclaycard Credit Card - currently on 0% interest

Balance of around £2500 on a First Direct credit card - 0% but about to increase to 19% interest.

Halifax Clarity Credit Card balance of £250 on 19% interest.

First Direct overdraft £750.

Total debt - £8500

Only currently able to pay minimum repayments on all credit cards - but have never missed a payment or defaulted.

I have a Tesco Credit Card that I have finished paying off, and they have now written to me to offer me 0% interest on a money transfer (3.99% fee) until September 2018.

I realise I could potentially Credit Card hop to a longer 0% deal - but my issue is that I think I'm unlikely to be successful in a new Credit Card application (excellent credit score, but very bad affordability rating at the moment)

Would it be a good or terrible idea to take up this offer from Tesco, and get a cash transfer to pay off some/most of the above debt? As the credit card is already mine, I'm assuming it wouldn't put a new mark on my credit file?

Really grateful for any thoughts. I normally just throw these marketing letters straight in the bin - but thought that this time it might actually be offering me something I need!

Comments

  • Candyapple
    Candyapple Posts: 3,384
    First Post First Anniversary Combo Breaker Intrepid Forum Explorer
    Forumite
    Yes, go for it. So effectively you've got 14 months to try and clear as much debt as possible at 0% - don't waste it!

    And to answer your other question, you taking out a promotional deal won't make any mark/impact on your credit history. It will just be shown as a promotional marker if you looked at your credit files.

    If you find that you don't have enough of a limit to clear enough debt, try upping your Tesco cc limit (can be done via online banking) first to maximise your opportunity.

    Good luck :)
    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
  • sparklyjojo
    sparklyjojo Posts: 42 Forumite
    That tells me everything I needed to know! Thank you so much for your quick and comprehensive reply, Candyapple. Great idea about upping the limit as well - I hadn't thought of that!
  • Chrysalis
    Chrysalis Posts: 4,140
    Photogenic Name Dropper First Anniversary First Post
    Forumite
    yeah I would take the deal.
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