Balance Transfer Question

odmassive

Hi,

Just a quick question. I have three credit cards which i recently tried to consolidate onto one but even though my experian credit score is excellent (score of 999) i got refused a new credit card.

I presume this is becaise all are at their limit. They are as follows:

Egg: Balance - £2990. Limit - £4000
Lloyds: Balance - £1390. Limit - £1500
Barclaycard: Balance - £1250. Limit - £1400

My girlfriend has said I can transfer these to her Tesco credit card but is this a sensible option?

Tesco have said that there will be no charge but the interest rate is 21.9%, effective as soon as the balance transfers. Her normal rate is 20%.

Your suggestions as to how to proceed would be gratefully received.

Thanks
OD

[Deleted User]

Depends on a lot of things -

What rates are you paying?
Is she happy to take on the debt - it's hers once you move it, regardless of whether you pay her back or not.
Is she able to get a good BT card instead of using her Tesco card?

odmassive

Thanks for the quick reply.

All the rates on my cards are higher i.e my Egg card is at 26.9%.

She is not going to be able to switch cards so this is the only option.

My plan is in a few months apply for another credit card in the hope of transferring some or all of it back on a card with a better rate.

[Deleted User]

If she's happy, then it seems a sensible approach. Just make sure she knows it's her debt now, not yours.

odmassive

She knows and is happy to do so.

Thanks for your advice

OD

ironlady2022

I'm surprised you got refused you credit card if your score is 999. It's dependant on your income anyway. I can see your interest will drop from 26.9% to 20% bear in mind there will be a transfer fee of 2.5%-3.5% so in your first year you will only save max 4.4% on your first year and then 6.9% per annum after that.

odmassive

I was surprised also as ive just paid off a long term loan for which I missed no payments. My income is pretty good around £35K but I am self employed if that makes a difference?

BugsyBrowne

odmassive wrote: »

Hi,

Just a quick question. I have three credit cards which i recently tried to consolidate onto one but even though my experian credit score is excellent (score of 999) i got refused a new credit card.

I presume this is becaise all are at their limit. They are as follows:

Egg: Balance - £2990. Limit - £4000
Lloyds: Balance - £1390. Limit - £1500
Barclaycard: Balance - £1250. Limit - £1400

My girlfriend has said I can transfer these to her Tesco credit card but is this a sensible option?

Tesco have said that there will be no charge but the interest rate is 21.9%, effective as soon as the balance transfers. Her normal rate is 20%.

Your suggestions as to how to proceed would be gratefully received.

Thanks
OD

I think we can safely see why you were rejected was because you are way to close to your limits.

bobbydrake50

He is close to his limits on 2 of them but on that income (as long as he can prove it) he only has a 5th of his income on total credit (not including mortgage etc). I have way more than that (and less income) and have been accepted by both Santander and MBNA this year to get their 0% deals. Are you sure you haven't got any late payments/defaults etc? (I still have one late payment from almost a year ago showing but was still accepted by MBNA a few months ago for 16 months 0% for £5000). Also remember the score means nothing and is a waste of money as all the lenders have different lending criteria. Maybe you have had too many credit applications in a short space of time?