Does it look bad if you keep getting 0% cards?

Legacy_user

I had a 0% credit card from Halifax, and paid it all off a month before the 0% period ended, and now use it for 1-2 small purchases and pay it off in full, and I have a 0% Barclaycard which has 0% until september, when I will pay it off (actually, I thought about paying a few hundred a month until then to get it down, is this a better idea?)

My question is, when it gets to september I will want another 0% card, but will places stop giving them to me if they know they won't make any money off me? I'm guessing banks love people who hold a balance but make payments on time every month?

also, should I apply for another card before I pay off my Barclaycard (or after, or cancel my Halifax card first and then apply for one?

I should be getting a car soon as well so want to get the lowest interest rate possible (hence thinking about starting to pay off my Barclaycard early)

thanks in advance (and sorry for just adding question after question lol, don't think it makes much sense)

Hazzinho

I've been doing it the past 12 years and never had a problem. Although I quite often transfer a balance so they get the initial 3% rather than nothing.

jason1231972

LooieENG wrote: »

(actually, I thought about paying a few hundred a month until then to get it down, is this a better idea?)

If I understand your logic behind this correctly (i.e. if you pay monthly over a longer period of time, you're establishing a good credit history), then this might make sense. On the plus side, you'd obviously have more monthly spare cash for yourself, too. I'm not 100% certain if there's anything to gain or lose from this approach, though.

My question is, when it gets to september I will want another 0% card, but will places stop giving them to me if they know they won't make any money off me? I'm guessing banks love people who hold a balance but make payments on time every month?

Never had a 0% card myself because my balances have never been high enough or lingered around long enough for it to really matter. My partner (who is glimpsing over my shoulder) has had loads, though, pretty much back to back, and used this method as a way of clearing quite large debt over the years, the only 'interest' she's ever really paid has been the balance transfer fees, which have been worth it. She informs me she's had 0% deals with particular cards, paid them off and closed them, and then gone back for more from the exact same card provider a couple of years later, even though they earned very little from her (I guess 3% of her balance in transfer fees and the hope that she'll run the debt beyond its promotional period is sufficient for them!).

also, should I apply for another card before I pay off my Barclaycard (or after, or cancel my Halifax card first and then apply for one?

Suppose that depends on how good your credit history is, and how comfortable one lender would be willing to extend their hand to you, knowing you have live credit and debt elsewhere. The fact that you're qualifying for these deals indicates (superficially at least) that everything's OK in that department.

fozmcfc

I'm on my 4th 0% deal, unless I get a repeat 0% purchase deal I don't use the card again, Virgin the best by far for me for 0% repeat deals.

Only exception when I may use a non 0% card is in an emergency and I know I can pay the full amount within the statement period.

The main issue which affect customers, is that eventually you end up with too much credit available to you, to be considered for another card. I.E you have say £20k in limits on unused cards and you have a £25k salary for instance.

Generally it is advisable to closed down 1 or 2 cards you haven't used for months or years, to free up some available credit.

I have 6 cards in total now, 4 of which I got for 0% purchase deals, so I need to practice what I preach really and get closing down 1 or 2 I haven't used for a year or more.

Going to try for my 5th 0% card in August when my current deal runs out.

Plxply

The card type/interest rate isn't shown on your credit report as far as I know so they won't know that it was a 0% card they will just see that you were holding a balance on it and possibly paying it off.

jo-bo

Plxply wrote: »

The card type/interest rate isn't shown on your credit report as far as I know so they won't know that it was a 0% card they will just see that you were holding a balance on it and possibly paying it off.

The card type won't show(MasterCard/Visa) but they DO show as credit cards and a number of credit card providers do now show whether or not you are on a promotional rate.

steveing64

On my credit report it shows that I have a prom rate but not what it is this is on equixfax saying that I currently have 5 0% on the go at minute out a total of 12 cards

eschaton

It can't look bad. I have lost count of how many credit cards I have had over the past 10 years or more - every one has been 0%.

Never done a BT since they brought in % fees, used to be maximum fees in £ which was fine. I remember the days when you could get £10k from Virgin into your current account for only £35.

YorkshireBoy

eschaton wrote: »

I remember the days when you could get £10k from Virgin into your current account for only £35.

And sometimes they'd waive the fee as well (especially on follow on deals).

I remember those days fondly! In 2005/06 my £73K stoozpot was making £237 a month net of tax in a 5% AER savings account.

Plxply

jo-bo wrote: »

The card type won't show(MasterCard/Visa) but they DO show as credit cards and a number of credit card providers do now show whether or not you are on a promotional rate.

Thanks, I never knew they reported whether you were on a promotional rate before.

mgarl10024

LooieENG wrote: »

but will places stop giving them to me if they know they won't make any money off me?

If you BT, they make fees from you.
If you don't BT, but you spend on the card, they make fees from the merchant.

Unless you pose a credit risk (too exposed with too much credit for example), they'll still want you to have the card as they are still making a lot from you.