Me thinking out loud!!

bgarnish

I've applied for the virgin 16mths 0% card, which is apparently now taking upto 21 days to process. NOT GOOD!!!!
So i have also decided to apply for the Barclays Credit Card that has a no fee balance transfer at a 6.8% for the life of the balance. Again waiting for the approval.
Which ever comes first i will use. But if it is the Barclays card then i will use the balance transfer deal making my interest a lot lower than it is at the moment. And then when the Virign Card appears i will use this to get the 0% interest.

Is this something that anyone can reccomend or am i going to shoot myself in the foot?

any advice is welcome

Thanks

B

no_cally_doe

Did you do a pre application check on the barlcaycard? It gives you the likely hood of being accepted. Generally as a guide you should only apply for two cards within any 6 month period so If they both come back as declined (hopefully the don't) then I wouldn't apply for any other cards for the next six months.

Its best not to get into the habit of applying for multiple products at once, because you only getting a couple of applications in a six months period before it starts to affect your credit report, its good to use them wisely.

Fingers crossed for you.

YorkshireBoy

bgarnish wrote: »

And then when the Virign Card appears i will use this to get the 0% interest.

For what purpose though? To supplement any shortfall in the Barclaycard limit or for purchases? Or maybe you have other balances to transfer?

Is this something that anyone can reccomend or am i going to shoot myself in the foot?

A lot will depend on how quickly you intend to repay, and if you're just going to sit back forever on Barclaycard's minimum payment rather than clearing quicker by paying more.

no_cally_doe wrote:

Did you do a pre application check on the barlcaycard? It gives you the likely hood of being accepted.

Unless it's changed recently this pre-check searches your CallCredit file only (as an unrecorded enquiry). Any formal application results in an Equifax search, which may turn up a different set of data than CallCredit hold.

Generally as a guide you should only apply for two cards within any 6 month period...

Could I ask which "guide" says that?

bgarnish

Thanks no_cally_doe

I already got the Tesco Credit Card a few weeks back, but this was for 0% spending to raise me out of another overdraft that my wages go into. I wanted and still need a good 0% balance transfer deal for a larger overdraft which is building interest which im struggling to pay off each month.

bgarnish

@yorkshireBoy

basically i want to get the lowest interest as soon as possible. And with Virgin taking 21 days to get the applications done and get back to you i can't wait that long. So i thought by getting the Barclays card, hopefully quicker i can shift to a low interest rate and then switch it up again once the Virgin card gets approved, all fingers tightly crossed tho.

B

Moggles_2

bgarnish wrote: »

Basically, i want to get the lowest interest as soon as possible and with Virgin taking 21 days to get the applications done and get back to you i can't wait that long. So i thought by getting the Barclaycard, hopefully quicker, i can shift to a low interest rate and then switch it up again once the Virgin card gets approved, all fingers tightly crossed tho.

If you're contemplating tranferring a balance first to Barclaycard (if that arrives first) and then to Virgin, this would entail paying two 3% BT fees to shift the same money.

You don't mention the APR you're currently charged, but I bet the above plan would cost you more than the interest charged on your old card over 21 days (if the application process were to take that long).

Moggles_2

bgarnish wrote: »

Whichever comes first, i will use.

This leaves things to chance, which is not a good idea, tbh.

The two types of deal exist because individual circumstances and attitudes vary. There's no perfect solution that suits everyone.

Have you estimated how long it would take to clear the debt in full?
If you plug some numbers into this credit card calculator,
http://www.whatsthecost.com/creditcard.aspx
you can estimate the time it would take to clear the balance using Virgin compared with Barclaycard. You can also see the effect of increasing your payments by a few pounds.

Martin's *Best Balance Transfers* article explains the pros and cons of 0% and life-of-balance deals and how to decide
http://www.moneysavingexpert.com/car...cards#choosing

no_cally_doe

"Can I ask which guide says that?"

From everything I have read about improving your credit report generally speaking applying for to many credit products in a short period of time is bad for your report. My point was that making too many apps makes it look like one is desperate for credit and its to be avoided. Have I been misinformed? (genuine question)

Also pre app thing isn't the most useful tool but I just wondered if it had been done to get a rough guide if the card poster applied for was available to them.

I am just in the mind that apply for one card and then wait to see the result before deciding to apply for another.

YorkshireBoy

no_cally_doe wrote: »

My point was that making too many apps makes it look like one is desperate for credit and its to be avoided. Have I been misinformed? (genuine question)

No you haven't. It's just the number/frequency of applications that's subjective. It may work for one person and not for another. I've read articles on credit scoring that say one application a month/max 10 per year is OK. I've personally made 4 or 5 applications in a day before now, and another one a month later, without a problem, but that was pre-credit crunch!

I am just in the mind that apply for one card and then wait to see the result before deciding to apply for another.

There are times when it's better to make multiple (or at least more than one) applications. For example, if you need to shift a large balance you may think that it's doubtful one lender will give you a limit sufficient to take it all.

In this case it's best to apply for 2 (or even 3) cards, in the hope that you'll get sufficient total credit limit. If you do them in one shot, then the 2nd and 3rd lender won't see the 1st and 2nd accounts on the credit search (if they've been set up and reported to the CRAs quickly). They may even not see the previous searches. However, if you delay these 2nd and 3rd applications the chances of rejection are increased IMHO.

Yes you'll damage your credit rating short term by making 2 or 3 applications in quick succession, but if it gets you the total credit limit required you won't need to make any more applications for a while anyway. And in 6 months or so the impact of these 3 quick succession searches will be minimal.

marksoton

no_cally_doe wrote: »

Did you do a pre application check on the barlcaycard? It gives you the likely hood of being accepted. Generally as a guide you should only apply for two cards within any 6 month period so If they both come back as declined (hopefully the don't) then I wouldn't apply for any other cards for the next six months.

Its best not to get into the habit of applying for multiple products at once, because you only getting a couple of applications in a six months period before it starts to affect your credit report, its good to use them wisely.

Fingers crossed for you.

Not quite true. I accept that multiple applications can be problematic but in the last six months i have applied for the Amex platinum, post office card and Virgin Black. All were accepted.

no_cally_doe

The above posts make sense I just thought that applying for multiple products may result in the spiral of rejection if one app is declined. I have read that lenders can see whether or not you have been accepted or declined by other companies. By using the recent credit searches on your report and whether or not you have any recent new accounts added can confirm whether you have been successful or not in previous apps.

There are so many articles on this stuff its difficult to know what's right and wrong.