0% Balance Xfer advice needed, thanks

fresh_start

Hi all,

I currently have 3 credit cards all on 0% interest free. The 0% interest free period all run out within 3 months of each other.

MBNA - Balance £3900, period ends 2/6/10
Santander - Balance £1700, period ends 7/10
Virgin- Balance £3200, period ends 24/8/10

I am working hard to pay as much off each month, but thats another story, another thread........

I know with the credit crunch its harder to get credit card(s) with a high limit. Also, I might have to apply for 2-3 credit cards within 2 months of each other, so i presume my credit score will have to be in good shape for me to do that.

So, am I better to apply for a credit card now, take the hit with the balance transfer fee, but by doing that I wont be applying for several credit cards at once and i will have longer gap between any future 0% credit card end dates.......

Thanks in advance !

Any

Ooooh, how long is a piece of string?
That is difficult to say... I have been accepted for as many as 3 cards within 3 months last year... But not everyone was so lucky....

Now I have a six cards, available credit of 75% of my salary and everyone says that there is no chance of getting more - and I was just accepted for Barclaycard...

However, as you have MBNA card there are some good news - they offer many repeat offers, LOB deals and other such... So the chances are that once you transfer the balance from that one they will offer you some deal to use for clearing the Santander without doing a credit check...

stephane_2

If you have a good credit file....then the world is your oyster, despite the credit crunch last summer I was given over £11,000 available credit between 3 cards. The issue with your situation is how far are you from the limit on those cards, it may play against you and that will all depends on your income as well, if you are on £30,000 a year then it should be fine to apply now but if you are on £15,000 then might be best reducing the balance as much as you can before applying for any more credit

CannyJock

fresh_start wrote: »

MBNA - Balance £3900, period ends 2/6/10
Santander - Balance £1700, period ends 7/10
Virgin- Balance £3200, period ends 24/8/10

If you're not stoozing, then presumably you're making minimum repayments on the Virgin and Santander cards and paying as much as possible as often as possible to the MBNA card where the 0% promotion ends first?

With what information you've given and based on current cards still being available, I'd do this:

today: appy for an Egg Card and pay the 3% fee to transfer the maximum possible into your current account, then bounce it into a savings account to earn you a bit of interest between now and June.

April: apply for a Halifax 0% BT card and use this to clear as much of the MBNA card as possible.

May: Clear the MBNA card from savings put into Egg Card.

June: apply for a Barclaycard 0% BT card and use this to clear the Santander card.

Meanwhile, look out for repeat deals.

I'd be tempted to apply for one of the new AA cards from MBNA at some point and move the credit limit from your Virgin card across to it once it's clear.

fresh_start

Thanks everyone

CJ - A couple of questions if you dont mind

I should have said, I make minimum payments on each card, but then put any spare cash into a savings account, to pay towards the balance at the end of the 0% deal. Dont have much saved up at the moment though.

I already have an Egg Card, but I guess I could apply for the Halifax one earlier and do a SBT to the Egg Card and then put this into a savings account until June.

What do you mean by "repeat deals"

Also, how do I...."I'd be tempted to apply for one of the new AA cards from MBNA at some point and move the credit limit from your Virgin card across to it once it's clear. "

Thanks for your help

fresh_start

I should say, the Egg Card is just used for petrol etc at the moment, gets cleared every month

Any

fresh_start wrote: »

What do you mean by "repeat deals"

Some cards, especially MBNA will do you an offer again once you cleared your card. You never know when though.

Suddenly you get letter saying that you have next 6mths 0% on purchases or 1.9% APR on balance transfers until Nov 2010 or Life of Balance deal...
(as long as you keep the card open though..)

Any

fresh_start wrote: »

Also, how do I...."I'd be tempted to apply for one of the new AA cards from MBNA at some point and move the credit limit from your Virgin card across to it once it's clear. "

Thanks for your help

As they are both from MBNA, MBNA let's you move the credit limit from one card to another - for example:
Virgin 2.5k limit
AA 3.4k
= ask them and you can end up with AA 5.9k limit (& Virgin 0)...

fresh_start

Thanks Any, and CJ, some useful advice

CannyJock

fresh_start wrote: »

What do you mean by "repeat deals"

What Any said, but would add that if you've opted out of their junkmail at application you won't get any offers through the post. I always phone and ask them for a repeat once the card has had a zero balance for a month or two. Most recent was with Ulster card, phoned them and they increased the credit limit from £4200 to £5900 and got a new 12 month 0% deal for a 2.9% fee.

EDIT: Credit limit increase didn't need a credit search either

CannyJock

Any wrote: »

As they are both from MBNA, MBNA let's you move the credit limit from one card to another - for example:
Virgin 2.5k limit
AA 3.4k
= ask them and you can end up with AA 5.9k limit (& Virgin 0)...

Consensus from the stoozing world is to leave £100 limit on the Virgin card to keep the card alive and increase the chance of a future repeat deal by having the Virgin and AA cards available - and always possible to transfer some of the limit back from the AA card to Virgin if an offer does pop up.