Does balance transfer "tarting" adversely affect your credit rating?

Lucy22_2

0% Balance Transfer Tarting -v- Low Apr for the Life of the Balance

I currently have a credit card debit of £4,385. It is currently all on one Halifax credit card, with 0% interest until April 2007. :T

I had planned to "tart" this credit balance from one 0% deal to another until I pay it off. However, I am starting to have reservations about tarting and am now considering switching to a fee-free low interest for the life of balance card. Especially considering that M&S is offering 3.9% for the life of the balance transfer (fee-free)

Obviously paying 0% interest is a cheaper option but I am worried how this will effect my credit rating (which is currently very good). This is my second 0% interest card. The first was with Egg for 6 months. Before I am able to pay off the debt in full , if I want to get fee-free offers, I am likely to have to get another couple of 6 month 0% interest deals (as deals over 6 months usually involve a fee). Tarting will enable me to get debt free, paying no interest. However, the potential downside is that I will end up with several credit cards (albeit with nil balances) which is bad for my credit rating. Closing these credit card accounts is also problematic as I am reliably informed that this is terrible for a person's credit.

Can anyone shed any light on this? I would be ever so grateful!!

southernscouser

Lucy22 wrote:

Closing these credit card accounts is also problematic as I am reliably informed that this is terrible for a person's credit.

Maybe not so reliably! :think:

It really is a grey area as what is black for one company in their lending decisions could be white for another.

By leaving old accounts open that could have very high credit limits you could be classed as a risk as you have a very high potential debt. But at the same time having lots of cards for short periods then closing them could also have an adverse affect.

Try and find a happy medium. For example if you have 6 cards with £0 balances close half of them and reduce the limits on the others.

Sorry I can't give you a definitive answer. However Mike St Helens has a thread running where he will answer credit questions as he has alot of experience in the lending divisions!

Mizz_Pink

I had an Egg card originally when I started to move my debt. I have an anniversary month of January which means every January I can move any debt onto the card for 6 months at 0%. The account is 'dormant' until that time.

See if you have an anniversary month.

frugglewump

Well I have been card tarting since 2002 and it hasn't had any effect that I can see on my credit rating at all. All the CCs I've applied for in that time have had about the same starting limit (except barclaycard who were really crap).

With respect to closing cards:
Some people advise to lower your limits - I found this didn't help. Having a reasonably high limit with a row of 0's on the credit report showing no problems seems to be better. Before closing each card I have always checked my report & left it a bit if there were any 1's caused by DD problems. I have closed 4 cards at the rate of 1 every 9months so far - I will freely admit the 0% market is becoming a bit more difficult which is why you see 6.9% LOB in my signature. (The M&S card looks really appealing to me right now)

Mizz_Pink wrote:

See if you have an anniversary month.

Yes but remember that the anniversary offer now has an uncapped fee of 2.5%

dudleyboy

I wouldn't worry too much about it. I tarted for about 4 years at 0% - 6 months here, 9 months there - and it doesn't seem to have done my credit rating any harm at all. I think i've owned about 6 credit cards during this time and providing you make your regular payments, additional ones too here and there which I hear bolsters your credit rating, you should have no problem at all.

Just remember to close the weakest links along the way - those with the highest APR and no occasional offer of 0%. Barclaycard, for example, often offer me 0% for 9 months every... err.. 9 months. Bless 'em. There's a 2.5% transfer fee but it does save me from having to apply for more cards.