The Best Balance Transfers article discussion area

ICEHOCKEY44_2

I am just coming ot the end of my 0% BT on my Virgin card, adn am looking into transfering to another one.

Virgin are offer the best number of free months again. Can I apply again with virgin, or should I go for another companies card?

Also as Virgin are part of the Capital (I think) group, would I also have to steer clear of companies that also use this company as they're source?

Looking forward to hearing from you all, with your ever so sound advice.

Cheers

Donna

Moggles_2

Originally Posted by JackRS
How long does it normally take to get these cards when applying online?

These introductory 0% deals are often heavily advertised and lenders are sometimes flooded with applications. Best practice is to allow 5-6 weeks but, with luck, your application and balance transfer will be processed in 2-3 weeks.

Moggles_2

Originally Posted by ICEHOCKEY44
I am just coming to the end of my 0% BT on my Virgin card and I'm looking into transfering to another one.

Virgin offer the best number of free months. Can I apply again with virgin ...?

Not unless you clear the balance on your Virgin card first. Also, bear in mind that Virgin's widely advertised 0% BT offers are for new customers, not existing ones. Even with a zero balance, there's no guarantee you'd be offered equally favourable terms a second time round.

As Virgin are part of the Capital group (I think), would I also have to steer clear of companies that also use this company as they're source?

You've got the right idea, but the Virgin card is underwritten by MBNA, so it's cards issued by MBNA you need to steer clear of, when requesting a balance transfer from Virgin.

Have you considered the Natwest card? This offers 0% BTs for 13 months from account opening. A BT fee of 2% applies.

JackRS

Moggles wrote: »

Yes, this applies to virtually all credit cards but, if you visit the website & apply online, the A&L card currently offers 0% p.a.on any balances transferred in the first 12 months from your account opening date.

2b Balance transfers: In the first twelve months from the account opening date, we will charge interest at the rate of 0% p.a. After that, we will charge a standard rate of 15.9% p.a.

As you say, there's a 2.25% handling fee, so you'll pay £45 to shift a balance of £2000. Provided that you keep within the Ts & Cs, there are no other charges.

Thanks Moggles, I understand the 2.25% handling fee just wasn't sure if they applied a separate interest charge to that fee. So basically the idea is to BT to this card, not use it for anything else, set up DD to pay minimum and pay off the balance before the 12m is up. This will enable me keep the money I have to pay off the card in a savings account an make a net gain of 4% (6.25%-2.25%). So a bit of hassle and messing about, but worth it for £80.

Moggles_2

Originally Posted by JackRS
I understand the 2.25% handling fee. Just wasn't sure if they [A&L] applied a separate interest charge to that fee.

The BT fee is collected with the first monthly repayment, so you're not charged interest on the fee.

So basically the idea is to BT to this card, not use it for anything else, set up DD to pay minimum and pay off the balance before the 12m is up.

Sounds good to me.

Best of luck
M

ICEHOCKEY44_2

Have you considered the Natwest card? This offers 0% BTs for 13 months from account opening. A BT fee of 2% applies.[/quote]

Funny you should bring up the NAtwest, Moggels. That was who I was going to apply to, I tried a couple of weeks ago, but forgot to put my partners details on the application and got turnt down!

Hopefully this shouldn't stop me from applying again!

You have been most helpful Moggles, you are a star!!

Cheers

Donna

Moggles_2

Originally Posted by ICEHOCKEY44
Funny you should bring up the Natwest, Moggles. That was who I was going to apply to. I tried a couple of weeks ago, but forgot to put my partner's details on the application and got turned down!

I would keep an open mind about the reason(s) you were unsuccessful. None of us knows how individual credit card companies view our applications. Fortunately, there are ways to improve your chances of acceptance.

Have you looked at your credit file recently? This is the information potential lenders see when you apply for a new credit card, so it's worth checking whenever you're rejected. Mistakes do happen. (For help, see the *How to obtain credit reports* sticky.)

For tips to improve your chances of success, have a look at the *Credit Rating* articles on the main site. In particular, Martin's *Check and Improve your Credit Score*article.

Hopefully this shouldn't stop me from applying [to Natwest] again!

I wouldn't risk another application for the same card right away. If, having done your homework, you're convinced your application was inaccurate, you may want to write an appeal letter to Natwest, giving brief details.

Alternatively, there are other 0% BT offers available. Which one is best will depend to some extent on which cards you currently hold.

Best of luck
M

Arian_Woman

As an existing customer, I have rec'd today two offers from NatWest that look brilliant.
Offer 1 is 0% till August 08, BT fee 2%
Offer 2 is 3.9% pa for the life of BT

I have a Morgan Stanley card that I transferred a balance onto some 6 mths ago which was also supposed to be 3.9% till 2010 but, on a balance of £2613.18 the interest added was £20.90 (& next mth it is estimated to be £23.18). I pay £100 per month by DD. How can it go up on a decreasing balance?

(On the statement there is a message that says "Your monthly int rate for purchases & BT's is 1.240%")

I haven't made any purchases on this card & I don't understand how the figures work out.

I am seriously thinking of taking up the NatWest offer unless I am missing something.

Moggles_2

Hi Arian Woman

Welcome to the Credit Cards board!

As an existing customer, I have rec'd today two offers from NatWest that look brilliant.
Offer 1 is 0% till August 08, BT fee 2%
Offer 2 is 3.9% pa for the life of BT

I am seriously thinking of taking up the NatWest offer unless I am missing something.

The 0% for 13 months NatWest deal recommended on the main site is for new customers. I would check the terms of your existing customer 0% offer against the above deal. If the Ts & Cs are substantially the same, apart from the 0% period being one month shorter that is, then this is a competitive offer.

One point to watch for is Natwest's practice of charging interest on the BT fee (See #481 above).

Moggles_2

Originally Posted by Arian Woman
I have a Morgan Stanley card that I transferred a balance onto some 6 mths ago which was also supposed to be 3.9% till 2010 but, on a balance of £2613.18 the interest added was £20.90 (& next mth it is estimated to be £23.18). I pay £100 per month by DD. How can it go up on a decreasing balance?

The estimated interest is based on the amount payable if you paid the minimum amount for this statement period and it reached Morgan Stanley on the due date. In actual fact, you've paid more than the minimum required, so the actual interest charged on next month's statement will be correspondingly lower.

On the statement there is a message that says "Your monthly int rate for purchases & BT's is 1.240%" I haven't made any purchases on this card & I don't understand how the figures work out.

This sounds like the standard message which appears on all statements regardless of the transactions posted to your account.

AFAIK, there's no promotional rate available on retail purchases at the mo. The special rate of 3.9% pa on BTs equates to monthly interest of 0.323% and this promotional rate should be shown somewhere on your statement. If not, I would ring Customer Services (0800 02 88 990) and ask why.

You may feel more at ease with a 0% BT deal. Interest calculations are more straightforward and the 0% BTs certainly save more money, provided that you're prepared to ditch & switch when the 0% promotion ends.