Credit card query

Tizzi

Hi,

I've encountered another small setback. I posted my SOA yesterday, and my post included the fact that I'd balance transferred over £3199 to a 0% until 2008 credit card.

Well, this morning, I received a letter telling me that although I'm still accepted for the card, they're not going to give me a credit limit high enough to balance transfer that amount over.

The options they've given me are that I can either transfer over £1500 max, or contact them and cancel the balance transfer altogether.

I don't know what to do now. My current card has me paying £40/month interest, so obviously I want to move the money from there.

Should I do a partial BT, as they suggest and leave the remainder on my current card with an interest rate?

Or cancel the whole thing, and apply for another credit card altogether?

Or maybe do a partial BT onto this card and partial to another 0% card?

Would applying for another credit card so close to this application negatively affect my credit score, and mean I'd get offered another card with similarly low credit limit anyway?

My current card is a gold card with a credit limit way above £1500, so I was not expecting this to happen at all. I've never defaulted on a payment either. (It was a 9 month interest free one originally, but when I got ill I lost track of the time and it ran out before I realised).

I've just looked at Equifax and Experian, and neither show anything negative at all, so I'm at a bit of a loss now.

Any and all help would be much appreciated.

Thank you very much!

DavidHM

Chances are that there's too much credit limit in relation to your income for the new CC provider to be happy to increase your credit limit.

You've nothing to lose by doing the balance transfer to this card and then considering getting a third card, then closing down the higher credit limit card (if you don't need the extra limit) to preserve your position.

If you decide not to go ahead with the new card, your record will show a search but not a card open - which might be offputting and your chances of getting more limit than you already have will not be helped IMO.

It's a gamble of course but that's how I would see it.

Xbigman

Banks are tightening up on credit limits and the like and it looks like you may have been caught out.

Do you have any other cards, especially cards you are not using? If you do their credit limits could be seen as adding to your total available debt, even if they are unused.

My advice would be to accept this transfer for 1500, reduce the credit limit on your existing credit card and once it shows up as reduced on your credit record, apply for a new 0% card to bt the rest.

You might also post this same question on the credit card forum as there are real tarting experts there who might know more than myself.
Regards



X

bommer

Have you approached your current card company to see if they can do a lower fixed interest rate?