To balance Transfer or Not to Balance Transfer

plzhelpme

Hi folks. Quick question. I currently have a Santander Credit card with £1764 on it. The interest rate is terrible on it. I've just came into £800 pounds and was wondering the best way to go about a balance transfer. Do I
a) pay off £800 to santander card then balance transfer?
b) balance transfer the 1764 and start repaying it then?

Im not sure which is best to do? Will i get a better deal with less of a balance transfer or more? Or does it matter? Have I better chance of getting accepted with less of a balance?


FYI I can afford to pay off £150 a month

Thanks in advance for your help.

grumbler

plzhelpme wrote: »

Hi folks. Quick question. I currently have a Santander Credit card with £1764 on it. The interest rate is terrible on it. I've just came into £800 pounds and was wondering the best way to go about a balance transfer. Do I
a) pay off £800 to santander card then balance transfer?
b) balance transfer the 1764 and start repaying it then?

Well, if you pay before transferring, you can save (depending on the deal) about £800*3%=£24 on BT fees. However, if you get, say 0% for 24 months it may be a little better to put £800 into a good saving account until 24 months expire.

Im not sure which is best to do? Will i get a better deal with less of a balance transfer or more? Or does it matter? Have I better chance of getting accepted with less of a balance?

Generally, £1.7K is not a big balance if you don't have other debts and black marks in your credit history.

zerog

plzhelpme wrote: »

Hi folks. Quick question. I currently have a Santander Credit card with £1764 on it. The interest rate is terrible on it. I've just came into £800 pounds and was wondering the best way to go about a balance transfer. Do I
a) pay off £800 to santander card then balance transfer?
b) balance transfer the 1764 and start repaying it then?

Im not sure which is best to do? Will i get a better deal with less of a balance transfer or more? Or does it matter? Have I better chance of getting accepted with less of a balance?


FYI I can afford to pay off £150 a month

Thanks in advance for your help.

Whether you pay it off now or next week is not going to change your chances of getting a good BT deal. Meanwhile, you are paying interest on the existing balance every day.

Apply for a new card now. If accepted, great. If rejected, pay the 800 to Santander ASAP.