0% Credit Card On Balance Transfers

Kimberley

Not sure how to title the thread. I have been granted a credit card by Natwest for 22 month 0% free interest on balance transfers. I have only been given a £500 credit limit and can only transfer 95% of the balance of my high interest credit cards meaning about £470.

Now the terms say that the 0% free interest over 22 months is for balance transfers within 3 months of the credit card being activated. What I want to know is if I pay the £470 off in full in the first month, can I transfer another £470 from my other credit cards, pay that off in full that month and then transfer another £470 in the 3rd month which would clear one of my high interest credit cards in full? Or is only the one balance transfer allowed?

Also if I do pay off the £470 in the first month and again in the second month would Natwest agree to increase my credit liimt so that I can transfer the balance of my second high interest credit card within the 3 month period? That would allow me to pay my remaining debt off in the 22 months at 0% free interest.

opinions4u

I don't know the answer to your question, although I doubt they'd increase your limit after three months.

But I doubt it makes financial sense to transfer a balance, pay a balance transfer fee and then repay the debt within a few weeks.

You might as well pay off the existing credit card directly.

Kimberley

opinions4u wrote: »

But I doubt it makes financial sense to transfer a balance, pay a balance transfer fee and then repay the debt within a few weeks.

You might as well pay off the existing credit card directly.

My high interest credit cards are both 34.9% APR. My new credit card is 17.9% APR

The balance transfer fee is £5 minimum so surely it is better to pay the debt off on the new card?

thenudeone

Limits are rarely increased for at least the first 6 months, until they can see your purchase and payment history for themselves.

There's no point paying a 3% BT fee for a transfer you're going to pay off within a few weeks.

Just transfer what you can and pay off just over the minimum every month until the 22 months are up.

Kimberley

I only have a £500 credit limit though. I want to transfer £1500 over the 3 months at 0% free interest. £500 approx each month. I already overpay my other credit cards but they both are around £66 a month interest. The balance transfer fee of my new card has a minimum £5 transfer fee so surely it's cheaper to get rid of the debt as quickly as possible within 3 months on the 0% card. I just don't understand why it would be cheaper to pay the higher interest card off instead.

TheGenerus1

Kimberley wrote: »

What I want to know is if I pay the £470 off in full in the first month, can I transfer another £470 from my other credit cards, pay that off in full that month and then transfer another £470 in the 3rd month which would clear one of my high interest credit cards in full? Or is only the one balance transfer allowed?

Not sure about Barclaycard Balance transfer T&C but I have just got a couple of cards from Sygma Bank with 90 days to do any BT at 0%.

I was told that I could do as many balance transfers as I wanted in that 90 day period, but only 3 at a time.
They said after the 90 days, any balance transfers will be charged at normal BT rates. I have done transfers 3 time already using the same card. I could do a BT 20 times in the 90 day period and be charged 0% APR on it.

The card that you are doing a BT from will say "electronic payment" as if you made a manual payment yourself for that amount. The credit card company you BT from will not know that this payment was due to a balance transfer.

[Deleted User]

Kimberley wrote: »

I just don't understand why it would be cheaper to pay the higher interest card off instead.

Because a month's interest on your existing card will be less than the transfer fee.

Paul_the_Painter

3% for 1 month, is roughly the same as 36% APR. There is No point in transferring a balance and then paying it off straight away.

lufc7

I would transfer the £470 to new card then pay £470 off your old card for next two months rather than doing a BT then clearing that one. Obviously pay a least min on new card ill old balance is cleared. This in my opinion would save you most.

41_and_i_know_it

I read Martin's comparison on 0% balance war and decided to apply for a Barclaycard, based on the transfer fee of 2.8%. Followed the link to apply but the transfer fee was 3.2% so decided to apply for Tesco credit card and was accepted. Transfer fee 2.9%. Just though I'd let others know because I was quite disappointed to find the information did not tally.:(

Kimberley

Thanks guys for clearing things up for me. It would have been better if Natwest had given me a bigger credit limit but I can now pay off my two high interest cards off by January 2013.