The Best Balance Transfers article discussion area

Moggles_2

Alternatively, if your credit report will take it, another approach would be to apply for two credit cards. Choose a decent 0% balance transfer card and route it through Egg Money to your bank account. In other words, use the 0% BT card to ‘pay off' Egg Money. (The other card will charge a handling fee for this.) Egg Money then has a positive balance and this money can be moved into your current account. You now have cash in your bank account equal to the balance on the 0% BT card and can pay off your Cahoot loan.

luv_my_brass

As the question about when the bt fee kicks in, I thought I would just say that having recently transferred to MBNA - 3.0 transfer fee - this amount has appeared on my first statement, so that will be paid off first. I know this new habit of charging these fees on 0% BTs is a bit of a blow, but I shall still be making interest on THEIR money, so will try not to shed too many tears over it.

Moggles_2

Originally Posted by luv-my-brass
As the question about when the bt fee kicks in, I thought I would just say that having recently transferred to MBNA - 3.0% transfer fee - this amount has appeared on my first statement, so that will be paid off first. I know this new habit of charging these fees on 0% BTs is a bit of a blow, but I shall still be making interest on THEIR money, so will try not to shed too many tears over it.

Whilst the majority of lenders now charge balance transfer fees - a trend started by MBNA - just three, AFAIK, currently charge interest on BT fees.

Bank of Ireland, LloydsTSB and Royal Bank of Scotland treat these handling charges as purchase transactions which are paid off last, so the BT fee is left sitting on successive monthly statements attracting interest.

Capital One, Citi, Co-op, HBOS and MBNA have never charged interest on BT fees.

Egg and Barclaycard have now dropped the practice.

In the case of RBS, I believe you can pay the handling fee in addition to your first monthly payment and avoid interest.

MOFOLEE

Hi there MSE, Just a quick question. I have one major card and it's nearly maxed out. If I had the chance to transfer it to more than one card how easy would this be?. I know once transfered I should not use the cards, just pay off the debt. Lets say I have £10.000 of debt, which is too big a balance for the two new cards, which are offering £5000 and £7000 limits. How do I go about splitting the money if it is at all possible?. The cards are asking for just that, a"Balance transfer". £10,000 is too much for any one card. So would the other card companys not do it because of the amount or is it up to the customer to decide how much to put across? If I could do it, I would split the debt and pay off the £10,000 using the new 0% balance for whatever amount of time. Then change before times up. Can I do it basically?

Moggles_2

Originally Posted by MOFOLEE
I have one major card and it's nearly maxed out ... Lets say I have £10.000 of debt, which is too big a balance for the two new cards, which are offering £5000 and £7000 limits. How do I go about splitting the money if it is at all possible?. The cards are asking for just that, a "balance transfer". £10,000 is too much for any one card. So would the other card companies not do it because of the amount or is it up to the customer to decide how much to put across? If I could do it, I would split the debt and pay off the £10,000 using the new 0% balance for whatever amount of time. Then change before times up. Can I do it basically?

Until you've been accepted for a credit card and told your credit limit, it's best to keep your options open, IMO, and leave the balance transfer section of your application blank or, if asked, state you may be interested.

I would wait until safe receipt of your new card(s) & credit limit(s). Then request your BT(s) by phone when you call to activate your new card(s). There's usually a Freefone number for this. That way you stay in control.

Muz45

YorkshireBoy wrote: »

The M&S card offered a LOB rate for transfers actioned within the first 6 months only.

Is the message just letting you know that anything you transfer now will be at the standard rate...or are you saying you are paying 18.9% interest now?

Iv'e just started paying18.9% now and it's saying that balance transfers are now at 18.9%( the efective rate ).

When i applied for the M&S card i transfered the money then, does that not count as in the first six months.

YorkshireBoy

Muz45 wrote: »

Iv'e just started paying18.9% now and it's saying that balance transfers are now at 18.9%( the efective rate ).

When i applied for the M&S card i transfered the money then, does that not count as in the first six months.

Maybe it's time to ask M&S what's going on?

Freephone 0800 997996 gets you their Chester call centre.

swagen

Hi, I have 4k with HSBC credit card 16.9% and think it best to transfer to a 0% and set up dd to pay off as I am paying lost of interest, my question is which is the best card to go for, it will only be to pay off the balance but this will prob take 2-3 years I see you guys recommned Mint but this has 2.5% fee, do they all have fees now? is this the lowest.

I also assume I will have to do this again in 12 months time when BT is no longer 0%?

thanks for your help!!

dana6108

Hi
I recently transferred a balance to barclaycard. After receiving the card I had to phone up to make the actual balance transfer. I was then offered either 0% for 6 months or 0.05% for the life of the blanace. I went for the latter. I just thought I would alert you to this, I'm not sure if the 0.05% is still available but it wasn't advertised anywhere just offered when I called up.

:j Dana

Moggles_2

Originally Posted by swagen
I have 4k with HSBC credit card 16.9% and think it best to transfer to a 0% and set up dd to pay off as I am paying lots of interest. My question is which is the best card to go for? It will only be to pay off the balance, but this will prob take 2-3 years. I see you guys recommend Mint, but this has 2.5% fee.

Lots of balance transfer cards have been recommended on this thread. Which card is best depends on individual circumstances.

Do they all have fees now?

Fee-free balance transfers are now few and far between and the longest interest-free period available is 6 months.

Is this [2.5% APR] the lowest?

It's possible to find 2% BT fees but, once again, the 0% period will be less than 12 months.

I assume I will have to do this again in 12 months time when BT is no longer 0%?

Yes, unless you go for a life-of-balance deal.

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