Help!!!

sammyk23

I am soo confused or just thick!!

I currently have an Halifax all in one credit card with approx £1300 on it. The statement says its Typical 19.0% APR (Variable) but its 0.00% introductory rate finishes in April this year.

I think i need to balnce transfer before April, as my balance doesnt seem to be going down.

What do i balance transfer to eg the APR and all that. I have found aTesco card which says its 16.9% APR variable with a 2.9% balance transfer fee. Is that a good choice?

I dont understand if the higher or lower APR is better!

NickX

sammyk23 wrote: »

I dont understand if the higher or lower APR is better!

The lower the APR the better for you. Try and get a 0% APR for as long a period as possible. There will probably be a 3% Balance Transfer fee applicable.

zerocool237

Well when looking at APR'S you want the lowest, then thats less you payback in interest but want would you use the new card for? just to transfer the £1300 and pay it off or do you plan on using the new card aswell?

sammyk23

I would just like to pay off the balance and never have one again! i applied for virgin as that was the best but have been declined so tesco was the 2nd best so may try them.

Thanx

zerocool237

Have you thought about why they may have rejected you? i mean have you had any missed payments, etc, reason i say is if one provider declined then its possible tesco may aswell, might be worth sending for a credit report and see if everything is in order first.

Richard_Cocks

"as my balance doesnt seem to be going down." - Are you suggesting regular payments aren't going through, or it's not going down as fast as you'd like? (Do you just DD the minimum?)

The above statement kind of concerns me. Also note that transferring from 19% variable to 16.9% variable with 2.9% fee actually makes you considerably worse off in the short term (The fee kicks in immediately and gets added to balance).

You need to work out a) What the actual APR will be after the 0%, (a "Typical" APR is one that must apply to at least 2/3 of customers, you should know the APR you're getting, not just the quoted typical figure) b) how much you owe exactly, and c) how much you're paying regularly.

You should also work out how much you can afford to pay regularly to pay down the debt as quickly as possible once the 0% ends.