credit card help

ashley86

hi am needing a bit of advise, i dont know much about credit card and how they work. but am tryin to help someone mange there debt. they have a credit card with £6000 with is maxed out, and payin intest on. i see tesco is got a credit card with 13 months 0% intested on new purcases. does this mean they could tranfer there £6000 from there credit card with intrest to the tesco one and have i year to pay it off with out intrest. thanks

izools

IF he has a good enough credit rating to be approved, and little enough debt / high enough income to get the £6,000 limit he'd need, then yes this means he could chip away at the balance without paying any interest for 13 months.

However to get a 0% credit card you do need to have a good rating, so if he has a lot of debt elsewhere, or has a high debt to limit ratio, or a high debt to income ratio, this may stop him from being approved for the card he is after.

If he has any doubt over the integrity of his credit file, I would suggest he instead apply for this card:

https://apply.creation.co.uk/creation/web_channel/cards/apply/personaldetails.aspx

There's of course no guarantee he will be accepted - BUT Creation have the most lax credit scoring model of all the cards offering 0%; so he stands the highest chance of approval for that one.

If he gets declined for this one then there's no point applying elsewhere - instead consider getting a copy of his credit file to see what might be wrong.

Good luck

[Deleted User]

ashley86 wrote: »

hi am needing a bit of advise, i dont know much about credit card and how they work. but am tryin to help someone mange there debt. they have a credit card with £6000 with is maxed out, and payin intest on. i see tesco is got a credit card with 13 months 0% intested on new purcases. does this mean they could tranfer there £6000 from there credit card with intrest to the tesco one and have i year to pay it off with out intrest. thanks

They'll need a card with a 0% BT offer, not a 0% purchases offer if they're looking to transfer the balance.

Bot otherwise, yes, as izools says above.

Saucepot

ashley86 wrote: »

hi am needing a bit of advise, i dont know much about credit card and how they work. but am tryin to help someone mange there debt. they have a credit card with £6000 with is maxed out, and payin intest on. i see tesco is got a credit card with 13 months 0% intested on new purcases. does this mean they could tranfer there £6000 from there credit card with intrest to the tesco one and have i year to pay it off with out intrest. thanks

0% on purchases is the interest rate on new spending on the card and will not cover transfered debt.

0% on balance transfers is the interest rate on debt you transfer to the card. This ingenuous as they usually have a fee of around 3%, meaning a 0% for 12 months actually costs 3%.

shiny76

ashley86 wrote: »

i see tesco is got a credit card with 13 months 0% intested on new purcases. does this mean they could tranfer there £6000 from there credit card with intrest to the tesco one and have i year to pay it off with out intrest. thanks

As izools says above. But just to add I only got a £4500 limit with Tesco and would like to think I've got a pretty good credit rating. You may need more than one card!

ashley86

thanks, so i would be looking for one with 0% on balance tranfers say of 12 months so i would stil be intrest free. x

izools

The card I linked to above has 15 month interest free on balance transfers and is the easiest balance transfer card to get.

Remember to put the details of your existing card on the application to improve the chances of them giving you the limit you want / need