New Credit Card?

turbulentfurball

I currently have a Co-op charity card with a balance of £700 and APR at 18.9% that I'm clearing at approximately £50 per month plus any extra income from ebay. I'd quite like to BT that balance to a new card so I can clear the balance.

Also, I quite fancy a cashback credit card so that when I clear my balance from the original card, I can use it and pay off the balance every month. The Egg money card sounds ideal, but they don't offer 0% (or anything really) for balance transfers, so that knocks that one out.

I also like the look of the Lloyds TSB Airmiles Duo cards, but the 0% on balance transfers lasts only 3 months, or 6 months so long as there's a qualifying purchase (which I'd then end up paying interest on, since the least expensive debts are cleared first: i.e. the balance transfer)

I see three options:

• Suck it up and pay off the current Co-op card without opening a new account until it's cleared
• Open a new card to BT onto with a decent BT option, then close it once cleared and open up a decent cashback card.
• Open the egg account and BT to that (typical APR at 15.9%, if I remember correctly.

Now, at the end of this I want just one credit card; no more. The thought of having more than one is a little scary for me, so I'd like to minimise the number of active accounts.

Other essential info: My credit history is distinctly average. I defaulted on a card when I was an immature teenager, but it's since been settled and doesn't show on my experian credit expert report. All other credit accounts have been in good order since then. (And that credit card is one of 4 current debts; my overdraft, a car loan (which I'll pay off in May) and my student loan (£17,500ish :eek:)

Any advice would be appreciated!

YorkshireBoy

I'd go for option 2.

Who do you bank with...and do they do a 0% credit card? That's your best bet isn't it?

Alternatively, try Virgin*, Egg*, or Halifax for long 13-15 month deals...all with a ~3% BT fee though (which is only two months interest to you)

When you say "clearing at approximately £50 per month", do you mean the balance is reducing by that amount or you're paying £50 and that includes £10 of interest?


* These cards may absorb your overdraft at 0% as well.

turbulentfurball

I'm paying £50 and that includes £10 of interest. I can BT an overdraft? I didn't know that.... interesting!

NickX

turbulentfurball wrote: »

Now, at the end of this I want just one credit card; no more.

Sorry to say this but you are limiting yourself heavily by wanting everything on one card.

You won't get a decent Cashback AND Balance Transfer card at the same time. Also you don't want to mix Purchases and Balance Transfers on the same card (one of Martin's golden rules).

Really you want a card just for purchases offering decent cashback, such as Egg Money or American Express (which offers 5% for the first 3 months) and a card with a decent Balance Transfer deal such as Egg, Virgin or Capital One.

My advice is to reconsider having 2 separate cards. Sorry.

turbulentfurball

NickX wrote: »

You won't get a decent Cashback AND Balance Transfer card at the same time. Also you don't want to mix Purchases and Balance Transfers on the same card (one of Martin's golden rules).

Indeed. I wouldn't intend spending on the cash back card until I've cleared the balance transfer.

NickX

turbulentfurball wrote: »

Indeed. I wouldn't intend spending on the cash back card until I've cleared the balance transfer.

OK, then as YorkshireBoy has said, Option 2 would seem the best option.

Don't want to twist your arm but its not that difficult to do the 2 in parallel, but if you really want to do one at a time then Option 2 definitely.

turbulentfurball

:j

I've been accepted for the Virgin credit card with a limit of £2000. That's enough to cover my credit card's balance and my overdraft leaving both interest free for 15 months.

That'll save me at least £20 per month in interest charges

NickX

turbulentfurball wrote: »

I've been accepted for the Virgin credit card with a limit of £2000. That's enough to cover my credit card's balance and my overdraft leaving both interest free for 15 months.

Congratulations :beer:

Good Luck with getting everything sorted.

turbulentfurball

I guess for the next 15 months I'll pay the minimum payment, and chuck all spare cash I can into savings and pay the remaining balance off in full then, which shouldn't be a problem