Balance transfer, should I go for it?

gedebage

I am thinking of applying for a balance tranfer card, possibly Virgin. I am a bit hesitant about it. I have never done this before. I owe about £1200. on an Argos Mastercard with a £2000 limit@ 25.9apr I also have a Barclay Premier Visa card with a balance of £1700 with a £2500 limit I just checked my credit score with Experian . It is 771 (fair). I have never defaulted on any of my payments, loans, cards, etc.

We recently bought a flat in June after living in share accommodation. I was hoping that as a home buyer that would give us a better credit rating. Equifax and Callcredit both give me a good credit rating.

I know when I apply for a credit card a footprint will be left on my credit file.

Do you think I should go ahead with it based on the information I have given here?

Thanks in advance

cooltt

Hi Ged
Yes it does put you in good stead if you have your own property etc...but each lender has their own rules on what their looking for. I recently applied and got a Virgin card (did it online took 10 mins with instant decision) and don't have my own home, haven't been on electrol roll in rented flat for that long, plus had 2-3 searches on file.

Your more likely to get it if your put down the balance transfers during the application process and exagerate your salary since they can't check it.
However what you may find is the credit limit will be exactly what the total balance trasfer is so effectively you can't use the card until the 0% is finished or they will whack you for interest.

gedebage

Thanks for that Cooltt. I don't mind not having extra credit, as I would only use that card to clear the balance.

[Deleted User]

Hi,

is your plan to transfer existing balances to new card at 0%, and pay it off over the interest free period, but continue using your existing cards.

I think you are looking at Christmas shopping here, good idea, as long as you know you will be able to keep up the extra payments, and not get yourself into a mess.

YorkshireBoy

cooltt wrote: »

Your more likely to get it if your put down the balance transfers during the application process

That's not been my experience over the years.

and exagerate your salary

That would be classed as deception to gain a pecuniary advantage, ie fraud, and would get you a CIFAS marker stating "application fraud: facility denied".

since they can't check it.

Suggest you google 'National Hunter' and/or read the provider's privacy statement, specifically the bit about fraud prevention agencies.

m_13

YorkshireBoy wrote: »

That would be classed as deception to gain a pecuniary advantage, ie fraud, and would get you a CIFAS marker stating "application fraud: facility denied".

The offence of deception to gain a pecuniary advantage was repealed by The Fraud Act 2006. The new offence would be either Section 2 (false representation) or Section 3 (failing to dislose information).

• "Fraud by false representation" as defined by Section 2 of the Act as a case where a person makes "any representation as to fact or law ... express or implied" which they know to be untrue or misleading.

• "Fraud by failing to disclose information" as defined by Section 3 of the Act as a case where a person fails to disclose any information to a third party when they are under a legal duty to disclose such information.

I would never exaggerate a salary to try and obtain increased credit. A conviction under The Fraud Act 2006 will reduce your credit rating substantially!

Moggles_2

cooltt wrote: »

You're more likely to get it if your put down the balance transfers during the application process

Anecdotal evidence does not support this and it certainly hasn't been my experience.

IMO, it's safer to wait until receipt of the card and credit limit before requesting BTs. That way you keep your options open, avoid unwanted partial transfers, paying the same card twice etc and retain some control over what happens when.

However what you may find is the credit limit will be exactly what the total balance transfer is, so effectively you can't use the card until the 0% is finished or they will whack you for interest.

Virgin restricts you to 95% of your credit limit, so the above would result in a partial transfer.

If you shopped with the card as well, you would be charged interest on purchases anyway after the first three months.

PurpleJellyFish

You will need to obtain a 0% card from the likes of MBNA or Egg is you need to clear off an Argos card - they do not allow you to balance transfer directly so you will have to transfer into bank account and then pay off the Argos card.

No advice to offer on whether you should go for it but hope this helps if you do

Rufus_348

I don't know much about this myself but my friend was in a similar situation and got a Virgin BT without any problem.

The Virgin CC does seem to be good (as long as you follow all the normal cc precautions of course!).

Here's some more info that might help you to decide:
http://www.credit-card-comparison-online.co.uk/virgin/money.asp
Or, for credit cards other than Virgin:
http://www.lovemoney.com/news/credit-cards/get-a-nonvirgin-balance-transfer-credit-card-3640.aspx

Hope those help, best of luck.