0% card or balance transfer card?

bargain_bagger

I am going to Australasia in January for up to 12 months (on working holiday visas).
I'm very likely to run low on money over there (when I'm between jobs) so I want to take a cheap credit card as a back up rather than having to use my expensive RBS overdraft or my standard credit cards.
I've got a Halifax Clarity which I will use for day-to-day spending. I want to use my new card to pay the Clarity off when I run out of money in my current account.

So in these circumstances should I get a 0% interest card or a 'balance transfer' card? In the MSE guide it says the 0% interest card is for 'spending' but I just want to use it to go to online banking and transfer money to my other accounts as & when I need it - so does that mean I should get a 'balance transfer' card??
Should I start 'tarting'? I'm good at keeping track of my finances. I currently have an 'excellent' credit score (999).
So.. which type of card should I get in these circumstances??

bargain_bagger

Just noticed something called a Super Balance Transfer, would that be more suitable for me?

I could transfer the lot over to my RBS and have it sitting there ready to pay off the Clarity when needed...?

MrsTinks

A few flaws in your plan... if you get a good rate card before you go then it's very possible that the introductory rate will have expired before you use it...
Super balance transfers... remember you need to actually get these cards first... and you might not get as much as you think you need to fund your travels - personally I'd say save a bit more and minimise the risk of you ending up in debt which you might struggle to pay off when you return to the UK...

bargain_bagger

MrsTine wrote: »

A few flaws in your plan... if you get a good rate card before you go then it's very possible that the introductory rate will have expired before you use it...
Super balance transfers... remember you need to actually get these cards first... and you might not get as much as you think you need to fund your travels - personally I'd say save a bit more and minimise the risk of you ending up in debt which you might struggle to pay off when you return to the UK...

thanks for your reply.

but surely I need to apply for the card before I go? I leave on 11th Jan 2012 and it could take a while to get the card, especially with xmas post/hols etc coming up.

What do you mean by introductory rate? I plan to get a card that's say 0% for 22 months... I'll be back in the UK well before the rate changes. And if there is a very limited time introductory rate I'll just transfer the money to my current account as soon as I get it. it won't cost me any more to do it before I need it, will it, cos it's interest free..?

I don't think I'll have a problem getting a SBT card as my credit rating is excellent. But this is more reason to apply early so I can try applying for a different one if I get rejected.

You say save more money before I go, but there is not much time. I'm not planning to spend much over xmas (got a 'no presents' pact) and I know exactly what I'm gonna earn in the month and a half that I've got left. It just isn't enough to support me for up to 12 months in Australia/New Zealand. I don't think it's as easy as it used to be to get work there so I need a little back up.
I'm only talking about borrowing approx £1500. I will have the means to pay this back when I'm back in the UK later next year.
I'd just rather borrow on an interest free card than from my RBS overdraft.

Anybody know which type of card/account it is I need?
I don't want to spend with the card, just transfer the money from it to my other accounts.

Tixy

The majority of balance transfer cards and super balance transfer cards require you to do the transfer within 60days of when the account is opened.

So with a normal BT card that won't allow you to do a BT when you run out of funds on the clarity card.

A Super BT card where you did the transfer to your current account straight away might work - leaving the money sat in your bank account.

On any credit card - even with 0% deals you are going to need to make at least the minimum payment to it each month.

Getting a 0% super BT card are some of the hardest cards to get. And as you are now in a position where you have no ongoing job (you've presumably already given notice at your work) then you'll find it very tough to be accepted for new credit.

Have you not got things you could flog before you go to boost your travelling funds? Or maybe just go for 6months not a year, if you don't have sufficent funds. How are you planning on repaying the debts you build up whilst there? what if you can't find work here once you return?

shiny76

bargain_bagger wrote: »

I don't think I'll have a problem getting a SBT card as my credit rating is excellent. But this is more reason to apply early so I can try applying for a different one if I get rejected.
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Anybody know which type of card/account it is I need?
I don't want to spend with the card, just transfer the money from it to my other accounts.

Most of the cards run by MBNA run Super Balance Transfers - not sure how many they are offering with them withdrawing their own from the UK market. Im sure another poster will be able to advise.

If you're wanting to borrow to stick the money in a contingency fund then perhaps take a look at the M&S Money CC or the Tesco CC. You can order Sterling Travellers Cheques and pay 1% or 1.5% respectively. Thats better than the fee for a SBT. And you'd get approx 15months until the offer period ran out (remember you'll still have to make min payments so that would erode your fund over time). Before applying check that your bank accepts deposits of Sterling Travellers Cheques

bargain_bagger

Tixy wrote: »

....
A Super BT card where you did the transfer to your current account straight away might work - leaving the money sat in your bank account.

On any credit card - even with 0% deals you are going to need to make at least the minimum payment to it each month.

Getting a 0% super BT card are some of the hardest cards to get. And as you are now in a position where you have no ongoing job (you've presumably already given notice at your work) then you'll find it very tough to be accepted for new credit.

Have you not got things you could flog before you go to boost your travelling funds? Or maybe just go for 6months not a year, if you don't have sufficent funds. How are you planning on repaying the debts you build up whilst there? what if you can't find work here once you return?

I just applied for the Virgin SBT online and it said 'Your application has been accepted. Your credit limit will be £2000. You'll receive a confirmation email in the next few hours. Your card will come by post in the next few days'. Is this for real, did I miss some small-print?? I thought they might want to phone me and check through my details etc..?!
So... assuming I read that right and the card comes I'll do the transfer straight off, set up minimum payments and hope for the best.
I have a big stash of stuff to sell on ebay when I go to my parents house next week. I'm hoping to sell my car the week after. I'll be due ~£1400 from an intense xmas job I'm doing 5-21 Dec on top of tiny earnings from my ongoing family business. I'm also gonna claim back forgotten overpaid tax from the last 6 years.

I have only got a one-way ticket to Australia, so yep, if the work prospects are poor and the money is dwindling I'll buy my return flight before I get into trouble. Even if I don't find much work I can always get voluntary work in exchange for food & digs with Helpx so should be able to make the money stretch a while.
When the card needs paid off I'll have some small earnings built up from the family business which should just cover it. If not, I can tart and transfer it to a new 0% card can I not?
If I can't find a job when I get back I can always move in with my parents (cheap rent ).
This is probably my only chance to visit Australia & New Zealand so I want to make the most of it.

Tixy

Sounds like you were accepted easy as that. I'm surprised if your income is very low and you don't have a permanet job - unless you didn't tell them that on the application?

bargain_bagger wrote: »

. If not, I can tart and transfer it to a new 0% card can I not?

If you don't have a job when you return then you won't get a new 0% card. I would never count on being able to tart. Its possible 0% cards won't exist in a year or a few years time.

Enjoy travelling - hopefully you won't need to spend any of it and it will just sit in your account and you can pay it all off the card when you return.

bargain_bagger

Tixy wrote: »

Sounds like you were accepted easy as that. I'm surprised if your income is very low and you don't have a permanet job - unless you didn't tell them that on the application?

It asked for my employment status and annual income etc. I put self-employed cos of the small family business which I run, even though I make very little money from it. (It's just a holiday cottage which we let out to cover maintenance costs).
The annual income was total guesswork. I do so many random jobs I've no idea what my average annual income is. I put a generous £10,000. Perhaps they will call me for proof of income etc.

Tixy wrote: »

If you don't have a job when you return then you won't get a new 0% card. I would never count on being able to tart. Its possible 0% cards won't exist in a year or a few years time.

Good point! I won't count on tarting then.

Tixy wrote: »

Enjoy travelling - hopefully you won't need to spend any of it and it will just sit in your account and you can pay it all off the card when you return.

Here's hoping!