Any disadvantage to combining separate balances onto one card?

bigsmoke

Morning All - hoping someone can help me with this?

I've just had an application accepted for the barclaycard platinum at 0% - I have 3 other credit cards that I've just been paying the minimum payment on for some time, as well as an overdraft. I was hoping to transfer the balance of one of the cards onto the new card at 0% to give me a chance to pay off the others before tackling it (my circumstances have just changed so I'm now in a position to start to pay the balances off - and hope to never rack them up again!).

They've actually given me a much higher limit than I asked for though, meaning that I could transfer all 3 existing balances onto it (all are currently 20-30%). This will save me money on my monthly repayments but I'm worried about whether there are any downsides to having all my eggs in one basket, so to speak?

I'm likely to still have part of the balance of one of the cards left at the end of the interest free period, if this makes any difference, and intend to close all but one of the old accounts after the balance transfer.

Thanks very much to anyone who can advise - I know that this should seem like a gift from the gods in my situation but, for some reason, it's making me really nervous!

BS x

Tixy

Can't see a disadvantage personally, especially given your current APRs.

What cards do you currently have? I would keep open the one most 'known' for giving repeat 0% deals. So that if needs be you might be able to use that again for any remaining balance once the barclay one is finished.

chattychappy

Well in a sense you haven't got all your eggs in one basket. It's Barclays trusting you with their eggs!

Agree - with those interest rates it's hard to see the downside. Given the 2.5% fee and the interest rates you have quoted, I wouldn't transfer anything you can pay off within the next month.

My Barclays Platinum has a minimum repayment of 2.25%. You might want to double check that this is not greater than what you are paying now. (Assuming you're paying at least the interest at present, it should be an issue.)

I would keep the other accounts open. You might get some nice offers to take over when the Plat deal runs out.

Put any new spend onto a different card (or one of your old ones). As you won't be clearing the balance in full each month, Barclays will charge you purchase interest (unless you have 0% on that too).

bigsmoke

Thanks very much guys

oops, thought I had replied to Tixy earlier but obviously mucked it up somehow!

I currently have Marks and Spencer, Virgin and Santander (obtained in that order - the Santander is less than a year out of the end of its 0% offer). The reason I thought I should close them was to keep the number of accounts on my credit record down but chattychappy, are you saying that this shouldn't be an issue?

Seems that I should go ahead with the transfers whatever I do about the old accounts though - just on hold trying to confirm the minimum payment!

thanks very much everyone

bs x

chattychappy

It's a dark art trying to know what looks good and what looks bad. Different lenders have different policies and no doubt they change.

I would have no problem keeping 3 dormant accounts open. But if you want to prioritise, I would keep Virgin open as MBNA are well known for coming back with offers. I've also had good repeat offers from Santander - so keep that open, especially if it's a Zero card because that's good overseas.

MFWannabe

It also depends how much you trust yourself not to spend on the old cards once you've done the balance transfer
Also how much available credit you would have compared to your salary; as you want to make sure you are in the best position possible to get another 0% deal when the Barclaycard deal ends. I would keep the Virgin card open for when this happens as they are usually one of the best for offers

bigsmoke

Thanks, that's really helpful.

I'll definitely keep the virgin one open then - want to close up the others to force a bit of control upon myself. I also have my current account with A&L so would prefer to have that separate from a credit card if possible, just in case the worst happens!

thanks again, really useful

bs x