balance transfer question

hostertlady

do you know how much it is to transfer £5000 from a lloyds tsb credit card to a tesco credit card?

do they charge per thousand? or a one off on the whole balance?

[Deleted User]

It'll be a percentage, Check the t&cs but it's normally in the region of 3%.

hostertlady

Deleted_User wrote: »

It'll be a percentage, Check the t&cs but it's normally in the region of 3%.

so about £170? so is that better than drawing the money out of My cash ISA to pay off the credit card?

[Deleted User]

You need to work out the saving from doing the BT. So interest paid on current rate minus your BT rate and 3% fee. Then compare that saving to how much you will lose by taking the money out of your cash ISA.

hostertlady

Deleted_User wrote: »

You need to work out the saving from doing the BT. So interest paid on current rate minus your BT rate and 3% fee. Then compare that saving to how much you will lose by taking the money out of your cash ISA.

the rates are so rubbish at mo for the cash ISA, but i will dig out my last statement and see what interest i got last time

exel1966

hostertlady wrote: »

the rates are so rubbish at mo for the cash ISA, but i will dig out my last statement and see what interest i got last time

The interest you got last time will not necessarily be the same for this financial year as most are variable if it's not a fixed rate ISA.

hostertlady

i think it is 5% interest, i dont know which way to go really, a lot of people say pay off credit cards with any savings you may have

Degenerate

hostertlady wrote: »

i think it is 5% interest, i dont know which way to go really, a lot of people say pay off credit cards with any savings you may have

ISAs are a special case. That balance you have locked away in the ISA is tax exempt for life, an exemption that you lose permanently the moment you withdraw it.

Whether it's worth drawing on an ISA is a complex decision dependent on many factors, such as how soon you can pay down the card balance if you don't, whether you will be investing you ISA allowance in future years, etc. It's not black or white because a lot depends on future unknowns.

hostertlady

Degenerate wrote: »

ISAs are a special case. That balance you have locked away in the ISA is tax exempt for life, an exemption that you lose permanently the moment you withdraw it.

Whether it's worth drawing on an ISA is a complex decision dependent on many factors, such as how soon you can pay down the card balance if you don't, whether you will be investing you ISA allowance in future years, etc. It's not black or white because a lot depends on future unknowns.

i know, it is just the thought of having that much on the credit card and the interest the banks will earn from me if i dont pay it off soon, i hate that fact!!

YorkshireBoy

In pure financial terms, you can see if it's 'worth it' by using this calculator...

http://www.stoozing.com/calc.php

As others have said though, there may be benefits to be had even if it isn't 'worth it'.


EDIT: Just re-read your OP and seen you want to switch to Tesco. That card only has 9 months 0% for your 2.9% fee, which means your savings rate needs to be over 4% AER (when you factor in the 3% min payments) just to break even. Why not get another, longer, card? Up to 16 months is available at the moment.

hostertlady

YorkshireBoy wrote: »

In pure financial terms, you can see if it's 'worth it' by using this calculator...

http://www.stoozing.com/calc.php

As others have said though, there may be benefits to be had even if it isn't 'worth it'.


EDIT: Just re-read your OP and seen you want to switch to Tesco. That card only has 9 months 0% for your 2.9% fee, which means your savings rate needs to be over 4% AER (when you factor in the 3% min payments) just to break even. Why not get another, longer, card? Up to 16 months is available at the moment.

which one is 16 months??
( heck then i will have nationwide CC. lloyds airmiles duo card, tesco credit card and the new one)