Should I BT?

starsky365

Being an one of those people egg decided to bin last year I have just recieved my Flybe card. The egg is at an atrocious 21.9% and has a £1927 balance on it. The trouble is that Flybe gave me a £1500 limit and after this my balance transfer rate is 24.9%. I could transfer everything I can to the flybe but im worried that after the 0% has run out i'll end up paying more interest than before. what id ideally do is transfer what i can and then pay off the balance on the egg from my salary and then hack away at the flybe for the next 6 months but i was wondering if this is the best approach?

gizmo111

starsky365 wrote: »

Being an one of those people egg decided to bin last year I have just recieved my Flybe card. The egg is at an atrocious 21.9% and has a £1927 balance on it. The trouble is that Flybe gave me a £1500 limit and after this my balance transfer rate is 24.9%. I could transfer everything I can to the flybe but im worried that after the 0% has run out i'll end up paying more interest than before. what id ideally do is transfer what i can and then pay off the balance on the egg from my salary and then hack away at the flybe for the next 6 months but i was wondering if this is the best approach?

Yes I would - and try to get the flybe card cleared in 6 months or apply for another 0% BT card then.

YorkshireBoy

gizmo111 wrote: »

apply for another 0% BT card then.

...and in the meantime get your credit report in tip-top shape by closing Egg (and any other available credit you have) in order to maximise your chances of acceptance for the next 0% card.

td_007

starsky365 wrote: »

Being an one of those people egg decided to bin last year I have just recieved my Flybe card. The egg is at an atrocious 21.9% and has a £1927 balance on it. The trouble is that Flybe gave me a £1500 limit and after this my balance transfer rate is 24.9%. I could transfer everything I can to the flybe but im worried that after the 0% has run out i'll end up paying more interest than before. what id ideally do is transfer what i can and then pay off the balance on the egg from my salary and then hack away at the flybe for the next 6 months but i was wondering if this is the best approach?

You will usually be able to transfer 95% of the credit limit to the flybe card that means you can BT £1425 to it and pay ~£43 as BT fees (assume it as 3%). However, this means that you will not be paying interest @21.9% on this amount which will save you ~£145 over a 6 month period. Therefore, it would be best to BT to flybe and make the min payments for the offer period and focus on clearing the Egg card. If after 6 months,if you are unable to completely clear the balance on flybe card you will be paying ~£3 per month extra (compared to your egg card). You will still be better off with BT.

starsky365

Thanks guys,


The trouble is that egg show me as having available credit on my account (and shown on my credit file) that I dont actually have, so hopefully If I can get rid of the egg all together and get the flybe balance down considerably I should be OK to get another card. Cant really understand it as in the last 18 months ive been turned down by Virgin/post office/halifax/MBNA/Abbey but my credit report is spotless apart from one blip.....about a year ago i went over my O/D limit with A&L, they phoned my on my mobile (no letters or anything) as I had no idea it had happened and I transferred some money there and then, the trouble is they recorded an AP on my file. Should this not have been a 1? I was only over the limit for 3 days.

YorkshireBoy

starsky365 wrote: »

The trouble is that egg show me as having available credit on my account (and shown on my credit file) that I dont actually have

Have you asked them to lower the credit limit? Don't go too far though because you'll appear maxed out.

Cant really understand it as in the last 18 months ive been turned down by Virgin/post office/halifax/MBNA/Abbey

Well two of these are from the same people...MBNA...so that may explain the double rejection. As to the others, are you on the Electoral Roll (for the last 3/6 years and traceable from your credit report)? Have you any CIFAS markers?

the trouble is they recorded an AP on my file. Should this not have been a 1? I was only over the limit for 3 days.

AP = Arrangement to Pay? Seems a bit drastic!

starsky365

I havent asked them to lower my limit yet no, is it worth it if im going to close it?

Im confirmed on the electoral role at my current address but only for 18 months and fully traceable on my file. I saw a CIFAS once but it was about somebody else at a previous address when i wasnt living there and it dissapeared after a month. The AP is only on my equifax tho, experian recorded it as 0.

BTW any idea why Barclays would record a U for an account that has been open for years?

YorkshireBoy

starsky365 wrote: »

BTW any idea why Barclays would record a U for an account that has been open for years?

http://experian.metafaq.com/resources/experian/Downloads/Credit_report_explained (bottom of page 11)

YorkshireBoy

starsky365 wrote: »

I havent asked them to lower my limit yet no, is it worth it if im going to close it?

If you can clear it, close it, and get it shown as "settled" on your credit report before you need to make another application, no. Otherwise quite possibly yes.