Balance transfer card as my first credit card

scratchyrat

Hi,

I'm fairly new to the whole debt/credit card thing, and I'm looking to get a 0% balance transfer credit card but as I've never had one before, would they approve me for one?

The reason I'm after a balance transfer is because a family member has a £800 debt on a card with 19.9% APR I've agreed to help them clear. My plan is to have this debt transferred to me, and then pay it off using a 0% balance transfer card. She can't get one herself as she doesn't meet the minimum requirement for the one we have looked at (Barclaycard platinum @ 0% for 22 months).

I have some questions, like would the minimum repayment amount increase if it was shifted to a new card? Also as I've never had a credit card before would it raise alarm bells if I applied for a balance transfer card while I currently don't have a balance to transfer?

jonesMUFCforever

If you have little or no credit history in your own name then getting a balance transfer card with a high enough limit might be difficult.
Start by asking your bank whether you qualify for one of their cards (they should be able to tell you without wasting a credit search) and take it from there.

Finally, remember if you get a card and carry out the transaction the debt becomes yours - there is no get out clause if your family member does not pay you back.

Curr946

Stop. Whats to stop the family member running up their own card again and then stiffing you stating they need to pay their own card first...

You may want to he'll them.clear it, but taking ownership is a whole new playing field my friend

scratchyrat

jonesMUFCforever wrote: »

If you have little or no credit history in your own name then getting a balance transfer card with a high enough limit might be difficult.
Start by asking your bank whether you qualify for one of their cards (they should be able to tell you without wasting a credit search) and take it from there.

Finally, remember if you get a card and carry out the transaction the debt becomes yours - there is no get out clause if your family member does not pay you back.

Thanks, I'll check this out. The limit required wouldn't be huge since its £800, not a massive amount of debt from what I've seen others facing. I do have bad credit, I think because I haven't had any at all since 2006 more than anything. At the moment I'm now thinking if I apply for a card in my name, make small spends on it and pay it off in full each month to build up my score that would be a good place to start. Then aim to apply for a BT in maybe 6-9 months time. I'm also going to see if she can apply for a shorter length 0% card herself and transfer the balance to that so it gets things moving. All the ones I've looked at so far have salary limits above minimum wage, and this is a problem.

Curr946 wrote: »

Stop. Whats to stop the family member running up their own card again and then stiffing you stating they need to pay their own card first...

You may want to he'll them.clear it, but taking ownership is a whole new playing field my friend

A fair point and one I have considered, so in short, I absolutely trust her not to screw me over. It isn't in her nature to do it to anyone, never mind me. She isn't reckless with money, doesn't want any more debt and hasn't run up more for several years, despite having the opportunity and banks trying to tempt her with offers of more credit once older debts have been cleared. The card is the last thing to clear and she'll have made herself debt free.

You do never know what's going to happen though. If something unexpected happened and I got stuck with the debt, I'm in a position where I could clear it without causing myself financial hardship.

Venusflytrap

scratchyrat wrote: »

A fair point and one I have considered, so in short, I absolutely trust her not to screw me over. It isn't in her nature to do it to anyone, never mind me.

It is noble to trust someone completely but wise to get any repayment agreement in writing when you're dealing with money (your money!). Isn't there a saying: "Money is the root of all evils"?

You do never know what's going to happen though. If something unexpected happened and I got stuck with the debt, I'm in a position where I could clear it without causing myself financial hardship.

If you are prepared to be charitable then go ahead with the trust arrangement, however if you need to recover what you're planning to lend, then you now know what to do.

chattychappy

Venusflytrap wrote: »

It is noble to trust someone completely but wise to get any repayment agreement in writing when you're dealing with money (your money!).

Yes. As it's a family member, advice/care needs to be taken over this. Courts sometimes shy away from enforcing something unless they really are sure there was an intent to create legal relations. At the very least, something typed up together with a note as to the consequences for non/late payment and that it is intended to be legally binding.

scratchyrat

I'll look into drawing something up. I did think about it before but didn't think it would be a legally binding since its an informal lending arrangement.

I've since found the Virgin Money card, 16 months at 0% with a 1.99% fee, and no minimum salary requirement that I can see. Any views on this card? Do you need a pristine credit rating to get it?

Curr946

scratchyrat wrote: »

I'll look into drawing something up. I did think about it before but didn't think it would be a legally binding since its an informal lending arrangement.

I've since found the Virgin Money card, 16 months at 0% with a 1.99% fee, and no minimum salary requirement that I can see. Any views on this card? Do you need a pristine credit rating to get it?

Just opened a Virgin balance transfer card, issued by MBNA and they require 20k min salary. Was given a high limit, enough to cover my other cards, if both were maxed. Thankfully, im only needing to move 3k. Was thinking about stoozing the rest of the limit, but with savings offering such a rubbish rate its not worth it.

Edit: Oh and the o% is 20 months