Credit Card Balance Transfer Discussion Area 2

Galstonian

It is safer to stagger applications. Multiple applications can obviously succeed given Ziggy's experience but they also carry more risk that you fail (or do less well in) credit checks. Accepted rule of thumb is no more than one a month and if you get a refusal then wait for up to six months before restarting. These are not hard and fast rules, they are simply the collected wisdom of many individuals posting here and on other sites.

My suggestion is always to
1) get your credit reference reports from Equifax and Experian (£2 by post), check these are all complete and correct, if not take corrective action.
2) Start applying
3) if you get refused or a limit less than you want always ask why. When told it is Equifax/Experian make sure you say you have the reports in front of you and ask for clarification. They may not budge but if you can explain items they may relent.
4) go back to 2 and repeat each month/as required.

Ziggy_3

Hi Dan Man

There's two hurdles to get a large free debt.

Firstly, you obviously want as higher credit limit as possible on all of your cards. I reckon I average around £13k, a couple are at £15k and one once gave me £5k. When filling in the application forms I am thoughtful on which bank account details I give them. All banks have their magic formula for working out how much credit they are prepared to give. My wife used to work for a bank credit department and she says they concentrated on the amount of unused credit and payment history. I therefore tell them about the bank account and Barclaycard I've had since I was 18 (now 34) and the credit limit Barclaycard give me (£15k). Incidentally, Barclaycard always pushed me to have a mastercard and visa giving me about £7k on each. I then told them I don't use the mastercard so can they transfer the credit limit over to the visa. As a result I have an unused £15k BC credit limit.

The second hurdle is how to build up the debt. I achieved this before SBTs were around using business expenses. If you don't have large business expenses I reckon you can probably build up the debt immediately across a load of non SBT cards with the help of only one SBT card acting as a gateway. First take out a SBT. As soon as the debt appears, pay it off using a non SBT card. Repeat until all debt is used.

Good luck.

Galstonian

If an application form asks you to list all credit cards I would suggest that you either do so or choose a different card where you are not asked this question. Some simply ask for balances you wish to transfer or the number and type of cards you hold rather than specific account details, I'm sure that is what Ziggy meant about picking and choosing which to reveal.

Lenders do have visibility through credit reference systems to the accounts you hold and the current balances (or at least a snapshot of what the balances were). It would be foolish to apply for a card and be refused on the basis that you witheld information which had been explicitly asked for.

Note that I have no insight into how rigourously application forms are cross checked with credit reference data, I simply don't want this site to be seen to be advocating actions which might be construed as fraudulent.

DanMan_3

Thanks for that Ziggy. I applied for a Mint card but the automated online system gave me a fairly low limit. I was wondering if anyone has had any success in negotiating the initial limit with any banks.

Ziggy_3

Sound advice. I too would never advocate telling fibs on application forms. Just play within the rules. If they asked for bank your bank account no. and you have 3, then which should you give?

Clearly everyone’s concern is to get and maintain a high credit rating. I reckon that playing the cc game actually improves it. Back to my wife - she says that people who haven’t accumulated a credit history struggled to get any. Anyone who knows of someone who has recently moved to the UK will know this to be true, despite their earnings. Of course those who have been taking advantage of the 0% offers for a while will be on loads of databases showing immaculate repayment history.

I may of course be totally wrong. I’d be happy if Martin would like to fund an unstatistical but fun credit check test on me.

Reaper

Many years ago I used to work for the Woolwich. Until they computerised it we used to do credit scoring manually and could see exactly what effect each answer had. Unfortunately I don't remember much of it except that when people applying for loans proudly said they had no credit cards they were given a huge negative score!

The fact that other companies are willing to lend you money and give you credit cards counts in your favour. To a point, of course. If you have too much it then starts to count against you.

jacinta_2

Reaper many thanks for the advice.i am learning so much from the people on this site.

MSE_Martin

MBNA balance transfers & Note to Cally

MBNA balance transfers:
OK have been trying to batter down MBNA on an exact foolproof definition of when the 2% fee is charged for balance transfers. The answer i currently have (no guarantees, it doesn't seem 100% ever) is

If the balance transfer is

a. An intro offer balance transfer
and
b. This is done on the application form

then there is no fee. Assume a fee at all other times (ie intro offer bt but done after application).

As for Cally, as a non-prejudicial goodwill gesture, they've refunded your £35

martin

Babe_Ruth_4

1st time using a message board so bear with me.
How do you extract a balance from your new credit card (to put into a high interest account) when you don't have any balance to transfer to it. Do the credit card company just give you the total of your credit limit as a loan for 6 months?

Callyanna

;D ;D

Cheers Martin! thank you so much for your intervention on my behalf with MBNA, YOU ARE MY HERO!!