Which credit card to choose?

dannybwoii

Hi all, my mother is currently a Capital One credit card holder, they have announced that the interest rates will be going up to 39.8% as of December. She uses the card ocassionally and normally pays off in full at the end of the month, however currently she has £750 outstanding balance.

She is looking to get a balance transfer to a new credit card with more reasonable interest rates....heres the problem she is disables and so recieves disability benefit so is unemployed, she does have a good credit rating though..

Will she be able to switch and if so to which card?

Sorry for the long post, many thanks

selecta_c

Not sure if she will be eligible for a BT card with being classed as disabled hopefully someone else will be along to answer that for you.If it turns out she cant get a BT it is possible to lock her balance with Cap One at the current rate but this means closing the account so she will no longer be able to spend on the card.

Moggles_2

Unfortunately, you need an annual income of at least £8000 to be considered for a 0% BT card. Even then, your choice of card is severely limited.

You don't say what the current APR is, but it's likely she was already paying well over the odds. Could you apply for a card yourself and transfer the balance?

Next month there would be some residual interest to pay, but from that point on, if she returns to spending only what she can afford to pay back on time each month, she'll never pay interest again. This builds a better credit history which, in turn, reduces the risk of further interest rate hikes

dannybwoii

thanks for the advice, a quick sum in my head tells me she might get 8,000 on the disability.

Yeah once she clears the card then i suppose it's irrelevant