The Best Balance Transfers article discussion area

beemerich

I've read lots on this forum and on the website and I'm always really impressed by the results people achieve and the quality of the advice given out. I have an observation I'd like to share about credit card Balance Transfers and tarting in general. I hope that I'm not about to repeat stuff that's already been said.

The question about pure card tarting vs. long term stable relationship has been distorted by the introduction of BT charges. The effect of paying 2.5% or 3% up front to switch a balance needs to be included in the overall cost of the debt. I notice that on the 'Size of the saving' table on the Best Balance Transfer advice page that this isn't included in the calculation as to how much debt remains after 6 months. I guess that this would also affect the time taken to pay back the loan (although I haven't done the sums).

Some of the offers, 0% for six months and so on can look really good (and they're all better than paying 24.9% to GE money(!)) but paying a BT fee of 3% every six months is actually worse than paying 5.9% on a long term debt and as well as the extra work involved there's always the chance of getting it wrong.

Just a thought - please feel free to tell me I'm wrong!

Moggles_2

Hi beemerich

Welcome to MSE & the credit card boards!

I don't disagree with anything you've said.

Some of the offers, 0% for six months and so on can look really good (and they're all better than paying 24.9% to GE money(!) but paying a BT fee of 3% every six months is actually worse than paying 5.9% on a long term debt and, as well as the extra work involved, there's always the chance of getting it wrong.

I certainly wouldn't advise anyone to pay a 3% BT fee if the interest free period were just 6 months. Uncapped handling fees are best avoided IMO, unless the 0% interest is offered for a protracted period

JohnHB_2

We are coming toward the end of our Ulster Bank Interest Free Credit Card and I saw from Martin's email :money: that Capital One are now doing a Balance Transfer Card with 0% interest on Balance Transfers until April 2008, without a Transfer Handling Fee. Perfect for a Tart like me. The card in question was a bit difficult to find on line, but ... I found it and applied. The Application letter arrived two days after and was for the wrong card as it was for the "Capital One Platinum Card". This is 0% for Balance Transfers and Purchases but included 1.7% transfer handling fee. Rang up and was told that I was mistaken. Looked on the website and rang up again, and was told I was mistaken. This time, armed with the web page, I was able to educate the member of staff who told me that a correct letter was on it's way.

The message must be;
READ THE LETTERS AND MAKE SURE YOU AREN'T BEING DIDDLED

PS I usually don't, so I'm quite proud of myself!

Agaton_Sax

Moggles wrote: »

Firstly, please note Marks & Spencer has raised its interest rates. The new deal offers fee-free balance transfers at 7.9% p.a. for 2 years from date of transfer - not such favourable terms, unfortunately.



Have you enrolled on the electoral register at your new address?

Yes, did so 2 weeks after moving in.

Moggles_2

Well done, Agaton Sax!

You will have disrupted your credit rating temporarily by moving house. Lenders like stability, so best practice is to apply for credit cards before you move, change banks or change jobs.

The fact that you're on the electoral roll though is very much in your favour

Very best
M

coulsond

After reading up on the balance transfers article for hte latest best 0% deal I decided to apply for the barclays 0% for 14 months with 2.5% balance transfer fee. However, on reading the terms when applying. I noticed that the 0% off only applies to balances of £5000 and under. anything exceeding that amount is charged at 6.9% for the lifetime of teh balance. I thought that that was a bit rude, hiding it away. My balance is over that amount so I will be going elsewhere.


Just thought I would make you aware incase it hadn't been spotted.


Dean

Nicki_Sue

Hi All -
Another newbie here. I have 4500 on too credit cards that I want to BT to another card to give me time, with 0% interest for a time, to catch up with other debts and chip this 4500 debt away.
I've been reading this thread for over an hour and don't think its going to be as easy as I thought! I'm looking at the Barclaycard 0% for 14months with a fee of 2.5% - wow, thats a £112 fee - I AM out of the loop a bit lol!
Will apply for this tomorrow but doubt now I'm likely to get a card with the limit I want. We have £17k of debt via two loans, and 4 credit cards (!) but no missed payments as yet so was hopeful but don't know what to think now!

Great site/forum though - wish I'd found it earlier!

Moggles_2

Hi coulsond

Welcome to MSE!

After reading up on the balance transfers article for the latest best 0% deal, I decided to apply for the Barclaycard 0% for 14 months with 2.5% balance transfer fee. However, on reading the terms when applying, I noticed that the 0% only applies to balances of £5000 and under. Anything exceeding that amount is charged at 6.9% for the lifetime of the balance.

This has long been the case, but thanks for posting. It alerts others.

Proof - if further proof were needed - that it pays to read the small print

Moggles_2

Originally Posted by Nickie_Sue
I have £4500 on two credit cards that I want to BT to another card with 0% interest for a time, to catch up with other debts and chip this £4500 debt away.

I've been reading this thread for over an hour and don't think its going to be as easy as I thought! I'm looking at the Barclaycard 0% for 14 months with a fee of 2.5% - wow, thats a £112 fee - I AM out of the loop a bit lol!

Barclaycard has become rather stringent. Currently, this lender turns down some 50% of applicants and credit limits tend to be low so, unless you have a current account with the bank, I would look elsewhere.

Which credit cards do you have at the mo?

Nicki_Sue

Hi Moggles,
Amazon (Halifax), Asda, HSBC and Paypal,
Its the Amazon and Asda I want to consolidate (£4500), Paypal is fine, only £180 on it and HSBC is my bank's card, at 600 maxed. I don't want to ask the bank for a higher limit on my HSBC, and besides this wouldn't really help. I have two loans in addition to this, one currently at 9800 and one at 2700.

In a bit of a muddle to say the least!