Balance transfer at high rate

tiger5000

As an ex-bankrupt (clear for almost three years), I am quietly going about building my credit score again and have had a Vanquis card (no surprise there!) for a while. I'm pleased to say that I'm managing it very well - paying off the full balance each month.

However, I've also taken a Capital One card. The thinking behind that application was that if I'm paying two back each month, then this ticks the two boxes each month, instead of one. I'm very confident that I can keep better control over this than I have done in the past.

Give or take a few decimals, the APR on Vanquis is around 40%, and around 30% on my Capital One card. As I've only just taken out the Capital One card, the balance is zero.

Now comes the tricky part. For the first time, I'm not in a position to pay off the entire Vanquis balance, and so I was thinking of transferring what I can't pay back to Vanquis, over to Capital One.

Initially, my intention was to take a hit on Vanquis interest for the next month, and it will be straight again the following month.

Capital One's balance transfer rate is pretty similar to their purchase rate, so I'm thinking that it's a good deal to do this - but I'm wondering how it all works. The figure I'm thinking of transferring is about £500. When would the interest on this become payable to Capital One? Do they put their 30% on as a fee straight away, or by transferring it, am I buying myself a bit of time with an extended interest free period?

battyboimatt

tiger5000

You will pay a balance transfer fee which will be added as soon as you do the balance transfer, intrested will start for this from the day it hits your account so will intrested on the balance unless you pay it and the fee off in full on your statement when you get, however what has me worried and dont hate me for this is you say your an ex bankrupt and you find yourself for the first time to be unable to pay vanquis off in full, I know this isnt my busienss and it might just be due to some circumstances but please be carefull this could be the start of the slippary pole again. I have first hand knowkldge of how easy it is to say, oh i didnt manage this month ill catch it next and then it just goes downhill from there.

Tixy

To transfer £500 to your capital one card you will be charged a 3% fee - so £15.
This would outweigh any saving you would make by moving to the lower APR.

I'd pay what you can off the vanquis card this month and make sure you can pay off all the remainder the following month.

tiger5000

battyboimatt wrote: »

tiger5000

...but please be carefull this could be the start of the slippary pole again. I have first hand knowkldge of how easy it is to say, oh i didnt manage this month ill catch it next and then it just goes downhill from there.

Thanks for your concern - it really is appreciated. I too am concious of this, but I really do feel its all under control this time around. As soon as bankruptcy hit, my monthly budget went into a spreadsheet, and I've been maintaining this ever since. I've even forecast my bank/credit card balances though to September this year!! I know exactly where I'm up to, and I know exactly how much I can afford to spend on credit this month to ensure I can pay it back next month. I should have done this years ago and I might not have ended up where I ended up!