Credit transfer between spouses

Wonderboy_2

Hello, my name's Ben.

I've been reading the boards for a short while - fantastic stuff!

Situation is, I applied for a balance transfer to Mint for £7.5k from Virgin, whose 0% is shortly expiring (just recieved statement saying next month interest is £97!).

Mint gave me a £2800 limit, saying that amount of available credit (HSBC, Egg and Virgin - £18100 total...) may limit somewhat. Fair enough says I, so I've closed the HSBC card and it's £7.5k limit. I call back Mint and they said they could increase to £3600 now, or I could write in with statements...

Trouble is my statement shows me persistently bouncing off the limit of my now costly £1500 overdraft, and I'm not sure they'd want to see that.

So, I thought lets SBT the overdrafts (and my wife's) with mint and get another card from Lloyds TSB to deal with Virgin - genius...

Declined.

I checked the Experian online credit report trial and printed my report - looks good, no defaults, all zeros, but with it only 12 days between mint and Lloyds was it too soon? Also HSBC hasn't shown up as closed yet.

My wife has no credit cards, and never has done! She has just got credit on a new car, so I'm thinking let her apply, then I could transfer on to her name (she is fine with this by the way!).

My worry is that since she is an 'associate' on my report, would she risk being turned down? She's also the more substantal earner (£50k). If she is successful, is transfering between spouses normal practice?

We are saving as well, but for a time in the summer when she'll be unable to work (doctor registration stuff), so we can't afford to let that get swallowed up.

Sorry for lengthy posting, thanks in advance.

klondyke

If your wife has nothing adverse on her credit record and earns more than you, she is likely to get a better credit limit than you:-) However, no credit history at all can have an adverse effect, so catch 22. (Suggest she applies to see what happens.) Hubbie and I have never yet transferred credit between us, though I believe many other members of this forum have done so with no problem. I think most credit card companies don't really care which/whose card is used, so long as it is not one within their own stable. eg not MBNA to MBNA even if they are different cards/people. I believe there is a thread on stooze.com as to which cards are related, so you don't fall into that trap.

People will correct me if I'm wrong!! but hope that helps.

Wonderboy_2

Thanks Klondyke,

So if transferring between my wife and I is fine, then we just need to pick an unrelated card for the transfer and try it.

Is it thought that the recent searches (Mint and Lloyds TSB) on my name will adversely affect her application? My credit report shows we are associated through the mortgage and a joint current account that we never use...

We've also been thinking it may be a better option to go for a cheap life of balance transfer. Do the card companies have a lower acceptance threshold for these accounts? I think we'd be happier not having to bounce around every 6 - 9 months, which is fine until you get declined...

Thanks to all who can help...

Ben

klondyke

I think (but am not an expert) that the fact that you and your wife are 'associated' is not in itself a problem. It would be if she had something adverse which could in turn affect you. What the cc companies are mainly concerned with is how much credit you have available to you (even if not used) and how likely you are to meet your commitments. The latter isn't just a matter of income, but history as well - missed payments etc.

But assuming all goes well, most BTs I have ever done simply ask for sort code, name of card company and account number, in which case you only need to beware that you don't accidentally BT to a total stranger's card:-).

Remember though, that SBTs are becoming rarer animals and transferring to spouse's or anyone else's card is great for paying their bills (ie not an SBT). If you put their card into credit (except Egg, Saga ....others anyone?) you could have problems, as they are becoming more iffy about credit balances. T&Cs are being changed (MBNA for one I think) to say that if you overpay, the overpayment will be returned to the card/bank it came from. In the past, and it still might be the case with some, people would grovel to the cards companies explaining that they really hadn't meant to overpay .... the DD had been taken as well as regular payment, or whatever, and please would company pay surplus back to customer's bank account. To be fair, this was sometimes accidental, but seasoned stoozers will know it was very handy!

In short, be careful that what you are planning actually achieves what you want, bearing in mind that the card companies are clamping down. You will both find an Egg card useful for its SBT and anniversary properties.

Good luck.