What to do.

NEILCM

Hi all,

Currently i have £22000 on 0% credit cards until about May,
They are on 4 credit cards.

Money was spent on wedding and a few other bits.

I want to transfer them to other credit cards in May time but am worried that as i have £22000 in credit already they wont give me more credit cards. my intention is to do the credit card as a balance transfer and canx the old.

How do i get new credit cards to pay off the old??

Neil

KingElvis

Would depend on your income and it will have to be pretty high if you wat to transfer that little lot.

NEILCM

Right So its not possible to get credit to pay off another credit??
even after its done i will have £22000 still on credit cards??

Neil

crispy_chris

The point is you will need to open the new credit cards while the existing ones are still open with balances on them.

If you did it all at the same time you would need to open new credit cards to the value of about £22000, which would give you accessible credit of £44,000.

Unless you're earning approx. twice this figure you are likely to be seen as a massive risk and get rejected.

The alternative would be to open one card at a time. Say you had 2x£5000 and 2x£6000 on cards at the moment, apply for a new card to transfer one of the £5000's to and then close the old one.

fozmcfc

If you have £22k on cards, then your card limits are obviously at least £22k, probably more.

That means you have a certain % of available credit (used or not) compared to your income. Most people around here think that you will get 50% of your annual income available to you in credit (ie. loans, cards, store cards etc). It is possible to have more if you have an excellent credit rating.

Say your income is £50k, then you would be likely to get maybe £3k more available in credit. You need another £23k + available to transfer those cards to others. Thus having even for a short period of time £45k available credit on a £50k salary.

There is a balance transfer fee usually 3% for each balance transfer you do and you cannot transfer between cards which are issued by same lenders.

TBH unless you have a huge salary and an excellent credit record, you have little or no chance of being able to get another £23k of credit available. In addition you'll need to find card providers who you don't already have and/or try to transfer between the cards you already have.

You'll need to post annual income and what cards you have and what limits and current balances you have to get the best advice.

NEILCM

so what would be the best way of dealing with it be?? then with out paying loads of intreast??

Neil

izools

That depends on:

Your income
Your credit history
The limits on the cards
Who they are with

If you can fill us in we can point you (hopefully) in the right direction

NEILCM

My income £41000 a year
My Partner £16000 a year

Credit history is Excellent according to credit report.
Pay all bills on time etc.

below is the credit cards we have and what we owe.

VIRGIN 27/07/2011 £1300
VIRGIN 04/09/2011 £5000
BARCLAY 03/07/2011 £9000
HALIFAX 03/07/2011 £6000

Credit limits are with a £500 of each

Thanks
Neil

I guess if i start now i could apply for a card at a time to replace as much money as possible.

NEILCM

I think the replace the credit bit by debt maybe best.

izools

One thing that will stand in your way is a high debt to limit ratio.

This will come across to any prospective creditor as debt stress.

Once your debt to limit ratio drops below 75% you will stand a much better chance of acceptance.

chattychappy

I think you should also consider LOB cards. Yes you will pay interest, but at least you'll only pay the fee once. A bit more security in knowing you don't have to keep the plates spinning. If you have the choice, I'd clear the Virgin debts first, because they are issued by MBNA who in my experience are the best at coming back with repeat offers.

If "partner" (presumbly complicit in the wedding spend??!!) could get a card that could help kick the merry-go-round off. Difficult on a relatively low income, but some cards look at household income.