Which BT would be best?

mizmir

Hi

I'm new (posted SOA on different thread) and am working on getting lower rates on my credit cards.

I currently have just over £5600 on a Sainsburys card at 15.9% and about £3000 on a Mint card at 14.07%.
I have just rung the two cards where I have enough available credit to cover these two. They have offered:

Capital One: 6.2% LOB rate with no transfer fee
MBNA: 2.9% to June 2007 with £75 transfer fee

I am tempted to go for Capital One as although the interest is higher it is longer term and with MBNA I would have to start looking for another solution in 6 months time. But should I go for the lowest?

Thanks

Storm

Ooo, this is the sort of sums I like doing (I know, I'm weird!) but to work it out for you I need to know how much you can pay off per month just off this debt

Storm

Also is the £75 transfer fee for both or for each transfer?

mizmir

Thanks!

Am currently paying £196 on these two but the Capital One is a £% min payment so would have to pay £260 if I went for that one. So let's say £260 - that should be doable.

mizmir

Storm wrote:

Also is the £75 transfer fee for both or for each transfer?

£75 overall for both transfers (they'd do it to my bank account).

Storm

If it's £75 for both transfers... go with the MBNA - not taking into account ANY payments (cos I don't know what you can afford) with MBNA you'd have £199.70 interest & charges in 6 months and Capital One £275.20. Obviously as you'll be paying something off it won't be this much on either, but the MBNA is the better deal & you can always switch to the Capital One in June if you can't get a better deal then.

mizmir

Thanks - will get that sorted now! :beer:

Storm

According to the snowball, by June 2007 (inc that payment) you'll be down to £7209.89 so interest would be £94.89 plus the £75 fee = £169.89

Going with the LOB by June you'd be at £7242.63 so interest would be £202.63

Basically you'd be £32.74 closer towards being DF going with with MBNA (but haggle to see if you can get the transfer fee down!)

By June you may well be able to get a better offer anyway!

Serialdieter

Hi

Personally I'd go with MBNA, cancel the other 2 then either go with capital one or find another low lob in June.

Have you considered getting a different lob card? I got an M&S &More card 3.9% and the bt was free.

Jx

mizmir

Have gone with MBNA. Money will be in my account in the next 6 days and I will then pay off both cards and cancel them. That'll leave just the MBNA and Capital One cards and I'll see what's on offer next June.

Many thanks!