Balance transfers - applying for next card

boiler-questions · 15 March 2017 at 10:44PM

We used a credit card to buy a car 20 months ago. The card was interest free for 22 months. The balance on the card after part-ex was £5000. We've just paid the minimum each month and now have just over £4000 left on the card to pay.

I want to try and move this to a new card and from looking at the terms, now seems a good time as the cards look to give me a 60 day window to do the balance transfer and the new interest free period starts from the date of the transfer, so I can leave it until a few days before the old card runs out.

Now my biggest issue is that I can't see what credit limit each card provider will give me until I apply. Am I correct that it will go against me if I just keep applying for cards to find the credit limit?

I have applied for one from Barclaycard, it is a 0% on balance transfers for 24 months with a 0% balance transfer fee.

If it comes back with less than £4k for the credit limit, do I just apply for another card and split the transfer between them?

Just to put it into context, we have a flexible mortgage and enough within the facility to comfortably pay off the debt - we didn't need to take a credit card out to buy the car. We only did it so that we were saving money by having less debt in the mortgage account. The garage we bought from didn't charge a credit card fee, so if we can use a new card with a 0% fee then it still won't have cost anything to have borrowed the money.

I forgot to say - that I tried the eligibility checker on here and it said 100% pre-approved, so there shouldn't be a problem getting the card, but I don't know what the limit will be, and although all the different cards that I would want all say 100% pre-approved right now - will they still say that once the application for the current one shows up?

Thanks

Dobbibill · 15 March 2017 at 11:08PM

You won't see the CC limit until you have applied - some show you there and then on the screen, other make you wait until the confirmation letter comes through.

If it isn't enough, I would apply once more elsewhere before it is reported to your CR.

molerat · 15 March 2017 at 11:20PM

I did just that, applied for 2 cards in one week.The only down side of applying for more than one card is the multiple credit searches so may jeopardise any other credit you apply for in the near future. That said, I applied for the 2 mid Jan and got another one this week. :rotfl:

boiler-questions · 15 March 2017 at 11:25PM

So am I best to apply for another right now as well and then neither will see the hit on the credit rating?

If one is enough - do I just then cancel the other?

Out of interest can you balance transfer from a flexible mortgage or does it have to be from a credit card?

I think there was a sainsbury's deal with the same but for 28 months instead so I might apply for that too.

If I wait for Barclaycard to get back to me - (5 days it said) - will that be too late to apply for another without them seeing the hit on my file?

bigadaj · 16 March 2017 at 6:53PM

I'd wait and see what you get.

If you need another card then a second application won't do too much harm, just leave it a few months before doing any more.

boiler-questions · 23 March 2017 at 11:20PM

Well I got a letter today from Barclay card saying "I'm sorry but we can't accept your application"

They gave an option to write to them to ask why.

I have no idea why I was rejected, great credit rating, never anything that would cause a negative. Have had occasional borrowing and always paid back without missing any payments.

Just filled another application in for Sainsburys, same deal but longer on the interest free side of things. They gave an instant response and a credit limit of £5500 - so much better!

So that will do just fine, shouldn't need to apply for another one for a couple of years now!

One thing I did wonder though...

I'm going to transfer £4000 from the other credit card.

Are you allowed to transfer from any other types of account? I have my mortgage in a oneaccount at the moment - can I transfer £1500 from there to the new card as well in anyway - just to save a bit on the interest for 28 months?

bigadaj · 24 March 2017 at 7:37AM

A few issues with that.

Firstly a standard balance transfer wouldn't work, you'd need to do a money transfer and this may well not be available to you.

Secondly you can normally transfer only 90-95% of limits, so you may be looking at less than a grand available.

Finally the mortgage is presumably long term debt, what's the plan for this when the bt transfer runs out, a mortgage at 25-30% interest might be a bit of a problem.

Nasqueron · 24 March 2017 at 9:20AM

Do make sure to make plans to pay off the debt in 22 months though - if your next one is refused what will you do?

MallyGirl · 24 March 2017 at 11:34AM

boiler-questions wrote: »

One thing I did wonder though...

I'm going to transfer £4000 from the other credit card.

Are you allowed to transfer from any other types of account? I have my mortgage in a oneaccount at the moment - can I transfer £1500 from there to the new card as well in anyway - just to save a bit on the interest for 28 months?

you can't BT to a mortgage. If you BT from your existing card to Sainsburys you could then ask your existing card if they would do a money transfer. If yes then MT from them to one account and follow that by BT from them to Sainsburys. You have to leave either 5% or 10% headroom on the sainsburys card so I would limit to £1000 for the MT. There is usually a fee for MT so it may not be worth the effort for this small an amount.
I have been stoozing into my one account for years.

boiler-questions · 24 March 2017 at 6:02PM

I have the facility available to pay off the credit card, it was never required in the first place. If I am refused a credit card next time then I will just pay the remaining balance off.

At the end of this interest free period it will only be about £2000 left.

Sounds like it isn't worth moving the £1000 or so, especially if there are fees.

Thanks for the advice.

Balance transfers - applying for next card

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