Stupid question

joffy

I know this is a really basic question
But what is the advantage of a balance transfer as opposed to opening a new credit card when you have got a credit card nearing the end of its 0% period

Paul_Herring

When nearing the end of a 0% period, you normally do both - open a new card, BT to the new card, then close the old card (unless it's useful in other ways, e.g. Egg Money)

BT's to old cards will generally be charged interest.

joffy

Why do you need to balance transfer to new card when you would get a credit limit on new card

Bisoy

Hi there,

If you have a current card that's nearing it's 0% period and has an outstanding balance that you won't be able to clear then the most sensible way is to get a new card with 0% to move your balance to avoid paying interest. Hope that helps.

thesaint

Also,
if you are transferring a balance between two cards you already have, you won't have to got through a credit check like you would do for a new card.

sloughflint

I'm new to this concept and eager to give it a go. Why not pay off the balance of first card and start spending again with new 0% card. I thought there would be a fee with BT so paying off the first card and spending again on new card up to limit would avoid that BT fee? What point am I missing?

thesaint

Ideally it would be best to pay off your complete balance, but most people can't afford to, so BT's are effectively a cheap loan. Used correctly you can make money from them.

Bokken_2

sloughflint wrote:

I'm new to this concept and eager to give it a go. Why not pay off the balance of first card and start spending again with new 0% card. I thought there would be a fee with BT so paying off the first card and spending again on new card up to limit would avoid that BT fee? What point am I missing?

The credit cards have different uses,purchases,BT or SBT's.
Your first card may not allow you to SBT money to your bank account so you get one of those,once you have a SBT card(a mule card) you can transfer a debt to it from another card and then pay off the debt on your SBT card once that is done your credit is available to SBT to a Savings account/ISA etc .The idea is to leave the money in a savings account all the time while obtaining a new card to pay off the debt from the previous card.
0% cards are sought after , while you are stoozing your credit limit you are not incurring interest on the outstanding debt.
The longer the 0% period the less often you have to apply for new cards thereby preserving your credit score.

sloughflint

Right thinking of going for it and applying for M&S More than card as my first card. Is that a wise choice or are different cards more generous with credit limits. We will want to get as high a credit limit as possible . Does the MS card have on line access to view transactions? Not a show-stopper if not.

Gordon_the_Moron

"Stupid Question"

Bad choice of title, there is no such thing as a stupid question, you just don't know much about credit cards, what better place to learn?

Da Moron

Bokken_2

sloughflint wrote:

Right thinking of going for it and applying for M&S More than card as my first card. Is that a wise choice or are different cards more generous with credit limits. We will want to get as high a credit limit as possible . Does the MS card have on line access to view transactions? Not a show-stopper if not.

Alliance and Leicester give good limits and are hungry for new customers they also have other benfits and online banking.
It is also a MULE card so you can transfer money to your bank account and then on to a saving account without incurring cash advance fees.You can do this over the phone there is a BT fee unless you are good at haggeling.
This would be a better first card.
You can always apply for the M&S card another time.
M&S card is not presently a online card and you cannot view your transaction like you can with alot of other accounts.