Credit Card Question

Karma

Hi,

I'm pretty clueless when it comes to money but have a HSBC credit card with a £12,500 limit and a balance of -£10k. :eek:

I am now in a position where I can stop using it completely, and would like to pay it off.

What is the best thing to do? I can't transfer to another card as other cards have a limit nowhere near £10k.

Any advice?

[Deleted User]

Sounds like you can't actually pay it off, but want to BT? Is that correct?

In which case you apply fo rthe card that you think is most suitable and BT whatever amount is appropriate and available.

A £10k limit is unlikely but not impossible.

Karma

Yeah, hoping to balance transfer and then pay off £750 per month.

Could I BT to multiple cards?

[Deleted User]

Yes, you can. But your chances of getting each new card will diminish.

Karma

Ok, fair enough.

What would you suggest in my situation? Stick with HSBC and chip away at it?

[Deleted User]

Would need more info to take an educated guess -

what is the rate on the card?
what's your income?
do you have any other debt?
what's your credit history like (eg missed payments, on electoral roll, etc)

Bear in mind though you're going to pay £300 or thereabouts to BT the balance out, so you need to balance that against the interest you're going to pay until you clear the balance.

yangptangkipperbang

1. DESTROY the card.
2. Get a cheaper loan to pay the card off in one go.
3. If you have a good credit record, try: http://uk.zopa.com/

CLAPTON

apply for a 0% BT card
transfer whatever limit they allow (e.g. £3k at 0% is better than £3k at whatever you are paying)

depending upon what limit you got then try again with another 0% BT card

[Deleted User]

Apply for the Barclaycard Platinum cashback card and in the application it will ask you how much you want to transfer. Put down the full amount of circa £10k and see what happens. You might be rejected, accepted with a lower limit or 'possibly' accepted with the full amount.

Won't know unless you ask. Remember that you will have to pay a balance transfer fee..

garynuman

Same as. I would try to get 0% Barclaycard at 22 months or 0% Nationwide CC at 20 months. I managed to get both to shift £6,000!:j

Shift as much of your current balance as you can to 0%. Destroy the old card.

If you're still left with a balance on the old card (you probably will as shifting £10k won't be easy), remember it is common for CC companies to increase the interest rate of your card making your debt more expensive.

So, look out for letters from them notifying you of this and REJECT them! You will still need to pay off the balance but at the current rate. Eventually you can close the old card account. DO NOT SPEND with this card. If you do, you'll automatically be agreeing to the new rate!

Gaz

fracturedsun

Just to add remeber if you balance transfer onto several cards that you need to make the minimum payments to keep the 0% rate, so factor that in when you calculate how much you can afford to repay a month.