New to credit cards. Please advise.

gdmellor

Hi, I'm looking for advice on credit.
I have never owned a credit card before but my partner has two (one a Lloyds TSB, the other a Virgin). We want to make a large purchase on one of the cards (around £3000), then transfer the balance onto a new card in my name, possibly a Virgin 0% over 16 months.
Is this possible and if so do I apply for the card first or make the purchase and then apply?
Also would it be better to us the Lloyds TSB card as there is sufficient credit available?
Another option was the Tesco 0% on purchases, but am I right that I would have to clear the £3000 in 51 days?
I have used the credit rating tool on this site and it came up excellent.
Hope you can help as I'm confusing myself with all the different offers.

CLAPTON

firstly and most important is that if it's BT to you then its your debt and you are totally responsible for paying it off.

if you haven't ever had a CC then you are relatively unlikely to get a 0% card as these usually go to people with an excellent credit ratings (including a credit repayment history).

for normal CCs then if you make a purchase then to avoid interest you must repay within 51 days (max) but for 0% cards, during their promotional period then you pay no interest until the end of the promotion (often 6, 9 12 months) although you must make the minimum payment each month

gdmellor

Thank you for your quick reply.
I do understand that I would be responsable for the debt.
So if I get the Tesco card then in 12 months time I should be able to tart it?

Moggles_2

We want to make a large purchase on one of the cards (around £3000), then transfer the balance onto a new card in my name, possibly a Virgin 0% over 16 months. Is this possible and, if so, do I apply for the card first or make the purchase and then apply?

I would definitely line up the new balance transfer card first

gdmellor

Thanks Moggles.
Can you transfer a balance at any time?

CLAPTON

Do you know what your credit record says?

In principle you can transfer the debt after the promotional period is over if you can get a suitable CC

you need to read the T&Cs carefully for when you can make the BT .. it depends upon each cards details.

Obviously you are not planning to pay the debt off over the first year... do be careful as if you don't and then you can't get another BT deal you may find you are paying 25% APR

gdmellor

Cheers Clapton.
I don't know what my credit record says.
I've started applying for the Virgin card 0% over 16 month. It says 0% on BT in the first 60 days, and intrest rate of 18.6% p.a.

Moggles_2

gdmellor wrote: »

I've started applying for the Virgin card 0% over 16 month. It says 0% on BTs in the first 60 days and interest rate of 18.6% p.a.

That's right. This means interest (typically 18.6% APR) kicks in when the 0% period expires.

Moggles_2

Would it be better to use the Lloyds TSB card, as there is sufficient credit available?

If you want to transfer the balance to a Virgin card, you will have to use the LloydsTSB card to make the purchase.

You cannot transfer balances between cards underwritten by the same bank. That would be like trying to pay them off with their own money

Moggles_2

Another option was the Tesco 0% on purchases, but am I right that I would have to clear the £3000 in 51 days?

No, currently Tesco is offering 0% on purchases for 12 months