The Best Balance Transfers article discussion area

Daz

Forgive me if I sound a bit thick, as I am quite new to all this and have never had a credit card in my life, so please bear with me!

I currently have an overdraft of £700 which I am struggling to manage, one of the main reasons is that I am being charged interest for it every month and therefore losing even more money.

If I get a credit card with 0% on balance transfers can I use the card to 'pay off' my overdraft in one lump sum and then pay the debt on credit card off during the next 12/13 months without paying any interest?

Again, apologies if I this sounds like a very simple question as I am a complete newbie when it comes to credit cards!

T.I.A.

Moggles_2

Originally Posted by langtounboy
Can someone please tell me why Barclaycard will only give me a credit limit of £2000? I'm trying to get £4000 interest free for the maximum time.
I've got the Egg Money card waiting for the transfer, but as Barclays only offered a max transfer of £1800, I told them not to bother.
My wage is well above the national average and my job is secure, I have [no] mortgages, I haven't been in debt, used my overdraft etc, so why such a trifling amount?

Barclaycard is not known for its generosity. That said, you've been handed a low limit.

Do you hold other cards from the Barclaycard stable (eg. Skycard)? Have you checked the available credit showing on your credit report recently? Even cards with a zero balance are viewed as available credit unless marked "settled"

Normally, I'd advise you to appeal, but Barclaycard has become rather stringent with credit ratings and available credit. Currently, this lender turns away some 50% of applicants and credit limits tend to be low so, unless you have a current account with the bank, I would certainly look elsewhere.

What cards will give me a larger transfer?

To help you further, we need to know which credit cards you currently hold.

Moggles_2

Originally Posted by Daz
I am quite new to all this and have never had a credit card in my life ... If I get a credit card with 0% on balance transfers ...?

If this would be your first credit card, you have a limited credit history, so from the lender's perspective you're something of an unknown quantity. You probably need to be more concerned about actually getting a credit card, rather than trying to find the best 0% deal.

Please be aware that lenders launch these 0% promotions, which are sometimes heavily advertised, to draw in new customers. Often they are flooded with applications and can afford to cherry-pick applicants.

You don't mention your age, but you have a bank account and presumably you're registered on the electoral roll. Your best bet is to approach the bank which operates your main current account. Having operated this starter card for a bit, you'll be in a better position to apply for a 0% balance transfer card.

There are no short-cuts to building a credit history, but there are steps you can take meanwhile to improve your credit rating. 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

Moggles_2

Originally Posted by Daz
If I get a credit card with 0% on balance transfers, can I use the card to 'pay off' my overdraft in one lump sum and then pay off the debt on the credit card during the next 12/13 months without paying any interest?

A handful of credit cards have this capability.

A card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin) Egg Visa or the Post Office card, will allow you to transfer an overdraft, in other words, transfer cash from the credit card to your current account.

Alternatively, you can use Egg Money [not to be confused with Egg Visa] in conjunction with any low-rate balance transfer card.

Mint periodically issues credit card cheques, which can be paid directly into your current account

Muz45

Hi all
I balance transfered on to the Marks and Spencer more card at 5.9% in Aprill of this year on the understanding it was for the life of the balance, i haven't spent on it at all, its now gone up to 18.9%.

Did i mess up, can anyone help.

Moggles_2

Originally Posted by Muz45
I balance transfered on to the Marks and Spencer &More card at 5.9% in April of this year on the understanding it was for the life of the balance. I haven't spent on it at all. It's now gone up to 18.9%.

Most lenders revoke life-of-balance rates and other promotional offers if you do not make at least the minimum payment on time each month or if any payment, including a direct debit, is returned unpaid.

Details should be shown on your previous monthly statement or you can check online. 18.9% APR is the standard rate.

langtounboy

Moggles wrote: »

Do you hold other cards from the Barclaycard stable (eg. Skycard)? Have you checked the available credit showing on your credit report recently? Even cards with a zero balance are viewed as available credit unless marked "settled"

To help you further, we need to know which credit cards you currently hold.

The only other credit card is the Egg Money card.:cool:
This has no debt on it.
Am I being pretty thick when I ask "How do I check my available credit score?":think:

Moggles_2

Originally Posted by langtounboy
How do I check my available credit?

It sounds as though yours is minimal. That said, it's a good idea to check your credit reports from time to time. This is the information UK lenders see, when you apply for a new credit card (For help, see the *How to obtain credit reports* sticky.)

Btw, credit scores are pretty meaningless and not worth paying extra for. The reports themselves are worth having though.

Moggles_2

Originally Posted by langtounboy
My only other credit card is the Egg Money card. This has no debt on it.

If Egg Money is your first ever credit card, you will find it easier to get higher credit limits once you have operated this and at least one other credit card for a bit.

Meanwhile, I would give Mint a go. This card offers 0% on BTs until 1 February 2009. There's a follow-on bonus offer from April 2009 as well. A 2.5% handling fee applies.

Muz45

Moggles wrote: »

Most lenders revoke life-of-balance rates and other promotional offers if you do not make at least the minimum payment on time each month or if any payment, including a direct debit, is returned unpaid.

Details should be shown on your previous monthly statement or you can check online. 18.9% APR is the standard rate.

Thanks for that, the only thing is i have't missed a payment and i've always payed more than my minimum payment and always on time.

Any thoughts?