B/T offer worth doing ?

Slayerx

Ok I have a HSBC credit card with a credit limit of 1500 and only 907.13 on the card leaving just short of £600 to use and its Interest free until Dec.

Anyway they have said I can transfer to the card now and whats transferred on would be at 6% interest for 6 months.

Would it make sense to transfer funds or would I then start paying interest on the original card balance?

YorkshireBoy

Slayerx wrote: »

Would it make sense to transfer funds

Depends what you're paying on your debt now. Presumably it's more than 6%? Are they also charging a fee? If so that needs to be factored in.

or would I then start paying interest on the original card balance?

Not until December.

Moggles_2

I have a HSBC credit card with a credit limit of £1500 and only £907.13 on the card leaving just short of £600 to use ...

I believe HSBC restricts BTs to 95% of your credit limit, so you may have just £500 or so credit to play with.

Moggles_2

Would it make sense to transfer funds or would I then start paying interest on the original card balance?

Not if it's interest-free until December, but generally it's not a good idea to have two different promotions running on the same credit card

Unless stated otherwise, you can bet that repayments will be allocated to your outstanding balance in a way that benefits HSBC, not you.
If you take up the new offer, there's every prospect that your existing transactions, which currently cost you nothing, will be repaid first, leaving the funds you've shifted attracting interest, so check the Ts & Cs.

Of course you may still save a few quid. As above, it depends on the rate you're currently charged.

Have you considered applying for a new 0% balance transfer card?
Which is best depends, to some extent, on which cards - besides HSBC - you have at the mo or have held recently.

chattychappy

Slayerx wrote: »

Ok I have a HSBC credit card with a credit limit of 1500 and only 907.13 on the card leaving just short of £600 to use and its Interest free until Dec.

Anyway they have said I can transfer to the card now and whats transferred on would be at 6% interest for 6 months.

Would it make sense to transfer funds or would I then start paying interest on the original card balance?

No it shouldn't affect the interest on your existing balance.

Whether it's worth it really depends on what you're currently paying on the money you wish to transfer. It doesn't sound like a great deal, particularly as you're probably pay an extra 3% on top for the transfer. But if you're currently paying 35% APR... then almost certainly it would be worth doing the transfer.

Bear in mind that once you've done the transfer, subsequent payments will knock back the 0% rate balance first. So you'll continue to pay that 6% on the full amount of that transfer until you have cleared the 0% rate balance (or run out of time). IF you are only making minimum repayments this isn't such an issue. If you're paying bigger blobs then it will hit your harder. In this case, it could be worth just paying the minimum and instead of doing the transfer using the surplus to knock the transfer amount back where it's currently located.

Slayerx

Thanks for the replies I've been given til the end of the month to decide bu HSBC so ill have a think and decide shortly.

My current card I was just making the min payments because its interest free with the intention of moving it again come Dec when the promotion runs out.

Slayerx

Balance transfer done and the new rate was actually 3.9% so even better, they also confirmed it won't effect the balance on there which is on the intrest free deal