0% with Transfer Fee -v- LOB Card at 3.9%

sassybird

Hi

Which would you say is the best way to go with outstanding credit cards.

0% with a transfer fee (12 months before it needs moving again)

OR

Life of Balance low interest rate (3.9%) until balance is paid off.


As I know I will not be able to pay the balance off within 12 months - (I think it will take me a couple of years), should I be looking at a LOB card?

Can anybody tell me what the minimum payment (percentage) is on the M&S LOB card?

How long does it take for an application to be completed?

Many thanks for all advice.;)

SparciaM

do the 0% one, then 12 months later BT it to another 0% and just keep doing that. That way you never pay interest only BT fees.

Phoenix79_2

It depends on the amount being transferred and the amount the OP can afford per month. Paying 2% or 3% BT fees every year (who is to say 12 month 0% deals will be around in twelve months?) verses 3.9% LOB no fee. In some cases the LOB is the better deal.

M&S is 3% min payment

Gordon_the_Moron

Is it really worth the hassle moving around all the time and paying 3% a year instead of sticking it in one place and paying 3.9% for however long it takes to pay off?

If you're disciplined enough pay off only the minimum on the 3.9% card and pay the rest into a top paying savings account and pay it all off when you've got enough, unless you are a top rate tax payer that will make you slightly better off. If you will be tempted to spend the savings then don't do it.

Da Moron

sassybird

Many thanks to you all for replying.

I must admit I am getting a bit sick of the transferring over balances and watching out for the end of 0% periods.


It seems to me that if I'm going to keep transferring balances, and most of the cards I can get are not even 12 months 0% (as I have used a fair few of the 12 month ones - 6 month 0% now being the most common), and plus the 2.5 - 3% transfer fee:

I may as well go for the LOB card at 3.9%.

Still a bit unsure as what to do - will think on it a couple of days.

Gordon_the_Moron

If you pay 2% for a 6 month card you will pay 4% per year so you are no better off (in fact marginally worse) than with the M&S card at 3.9%, unless you can do much better is it worth the hassle?

Da Moron