The Best Balance Transfers article discussion area

Moggles_2

Hi stevetherover

Welcome to MSE!

I have a life of balance on a Barclaycard Gold Account currently approx £2000 at 3% and would be paid off in 2011 @ around £50 per month.
I have been offered in the post today 0.9% until January 2009 no fee applies. [ I assume 0.9% means 0.9%pa but it doesn't say anywhere in the offer!]
Interested in using up my much higher credit limit to make a transfer if this offer rate is real.
My question if anyone knows are:
1. Is this 0.9%pa?

Barclaycard have several existing customer promotions running at the mo and I've not seen this particular one yet, so can't answer question one.
All the same, however favourable the interest rate turns out to be, I would keep different BT promotions on separate cards.

2/3. Are there any catches?

Unless stated otherwise, you can bet that payments will be allocated to your outstanding balances in a way that benefits Barclaycard. If you take up the offer, there's every prospect that your 0.9% transfer will remain trapped on the card long after January 2009 when the interest rate leaps to your standard rate, which is variable.:eek:

4.Would it be better to pay off the life of balance and then re-transfer a new balance?

IMO, Yes. If you have savings to do this, that's great. Otherwise, the interest and any handling fees charged by the card you BT to, will need to be taken into account.

stevetherover

Moggles

Thanks for the comments.
Will probably pay off the the life of balance and transfer new BT at 0.9% pa if there is a bigger return.

Cheers

travelling_light

Sainsburys bank and virign ccards
i have 2 credit cards. Sainsburys @£900 and virgin @ £500. Who can I balance transfer both debts to for the lowest %apr? Any ideas? I really need to act fast as I have let these two slide out of 0% rates and now I'm geting hit hard!!!! Should've listened to Martins advice!!!!!!!!!

Moggles_2

Originally Posted by travelling light
Sainsbury's bank and Virgin cards
i have 2 credit cards. Sainsbury's @£900 and Virgin @ £500. Who can I balance transfer both debts to for the lowest % apr? Any ideas?
I really need to act fast as I have let these two slide out of 0% rates and now I'm getting hit hard!!!! Should've listened to Martin's advice!!!!!!!!!

Er ... Yes. Should have listened to us too (Please see #486 above)

Have you considered the Royal Bank of Scotland deal which offers 0% on BTs for 13 Months? A 2% handling fee applies.

Alternatively, to maximise the interest-free period, 13 months is available from Barclays Platinum. There's a 2.5% BT fee

Very best
M

absfabs

Just some feedback on credit limits for balance transfers:

Virgin Atlantic has been 3 times as generous as John Lewis, despite theirs being the 3rd credit search in a row!

sortinmedoe

I need to transfer £1600 from Sainsburys within 2 weeks and £3500 from M & S within 2 months.

I already have a Nat West (nothing owed on this). Nat West are offering me 0% for 12 months with 2% BT fee, BUT, they are charging interest at 18.3% on the BT fee until the debt if paid off.

Which card would you advise which does not charge interest on the BT fee please?

I'm hovering over Tesco, but I don't see it under Martin's recommendations. Would Tesco be a good idea?

Thanks.

Moggles_2

Originally Posted by sortinmedoe
I need to transfer £1600 from Sainsburys within 2 weeks ...

TBH, you'll be lucky to have your credit card application and balance transfer request processed within two weeks! Best practice is to allow more like 5-6 weeks.

I already have a Nat West (nothing owed on this). Nat West are offering me 0% for 12 months with 2% BT fee, BUT, they are charging interest at 18.3% on the BT fee until the debt if paid off.

This may be irritating, but it's not going to cost you an arm and a leg. On a balance of £1600, it's around 50p per month, which is peanuts compared with your Sainsbury's card, which would charge the standard rate (around 15.9% APR at the mo) on the entire balance. With the clock against you, I would give this existing customer offer another look.

Which card would you advise which does not charge interest on the BT fee please?

The newly launched Capital One Balance Transfer card offers interest-free BTs until 1 April 2008 with no handling charges.
Alternatively, the Capital One Platinum deal offers 0% on balance transfers and purchases until 1 August 2008. A 1.7% handling charge applies.
Note: these cards require an "excellent" credit rating, so check you can meet the criteria listed on the Capital One website before you apply.

Alternatively, to maximise the 0% period, 15 months is available from Virgin. There's a 2.98% BT fee.

I'm hovering over Tesco, but I don't see it under Martin's recommendations. Would Tesco be a good idea?

Tesco, like NatWest, is underwritten by Royal Bank of Scotland, so BT fees are treated in the same way.

sortinmedoe

Moggles wrote: »

TBH, you'll be lucky to have your credit card application and balance transfer request processed within two weeks! Best practice is to allow more like 5-6 weeks.........]


Thanks Moggles. All things considered, I think I will go for the Nat West then. I doubt if Capital will accept me and Virgin turned me down a year ago.

Sadly, the Nat West offer is only available to me til 28 September, so I will have to transfer the M&S debt now as well, I guess, even though it's not due til 22 November.

travelling_light

Royal Bank fo scotland fee is online as 2.5% for BTs.

riad_2

sortinmedoe wrote: »

I already have a Nat West (nothing owed on this). Nat West are offering me 0% for 12 months with 2% BT fee, BUT, they are charging interest at 18.3% on the BT fee until the debt if paid off.

With RBS and Natwest cards the fee is paid off FIRST before the Balance Transfer... which makes their BT's one of the best around!! So you would not be paying interest on the fee till the debt is paid off.