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Barclaycard Inital

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Hi all!
I just have some info about my application for a Barclaycard Inital (may be of use for people in a similar circumstance) and wanted some advice on the back of that.

I recieved my card on Wednesday and to be honest was a bit taken aback that I'd been accepted!

I applied on Friday (21st June) and after going through the application and waiting for a result was met with a page saying something along the lines of "we need further information from you and will be in touch asap". I didn't get a call but recieved an email on Wednesday, entitled "your statement is now online". Got home from work and found my card in the post!
I've been given a limit of £400 on the card.

My financial situation isn't fantastic but is improving.
  • I went through a DMP, which came to an end in 2010.
  • I have 2 defaults on my file (one of which was removed last month) and the other is due (cross fingers) to be removed in October.
  • I'm currently (according to Experian) using 70% of my credit
  • I have a Capital one credit card (the bad debt one!), never miss a payment and make more than the monthly payment.
  • I'm almost always maxed out on my overdraft although I don't think I've gone over it for at least 2 years.
So, I thought maybe that information might help someone considering applying for a Barclaycard Inital with similar circumstances; I know one person getting one in certain circumstances isn't going to immediately mean somoene else will also get it in similar situation, but thought it might give an idea.

I wonder if anyone could give me some advice about the card:

Unfortunately I dipped into the Capital one card much more than I intended to due to car repairs which was absolutely essential as I use my car to do my work. I now have quite a substanial outstanding balance on the Cap one card which is incurring a whooping 34.9% interest rate. I know I'm an idiot for allowing it to get to this, but I genuinely had no other options.
I don't miss any of my payments (pay more than the minimum payment) and I'm making progress in finding some extra cash each month to pay extra.

What I'm wondering is (I haven't made any enquiries to Barclaycard yet):
  • If Barclaycard accept; is it worth me transferring £400 from the Cap one card to the Barclays Inital card (which has a 5 month 0% interest free period)?
  • Or would it be more practical to use the Barclaycard as a 'day to day' source of payments (i.e. use that for everything during the 5 month period, I know £400 isn't a lot!) within a budget and make as much payments as possible towards lowering the Cap one balance?
A balance transfer would obviously save more money.

I know I need to confirm via Barclaycard first whether they would allow a balance transfer (I did put on application form I wanted to do that); but I'd appreciate your opinions or input.

I'm also considering applying for the Capital one progress card (or one of a similar vain) as the intereset rate is somewhat lower 29% if my memory serves!



Thanks for any comments or advice! :)

Comments

  • fozmcfc
    fozmcfc Posts: 3,098 Forumite
    First Anniversary Combo Breaker PPI Party Pooper Debt-free and Proud!
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    Well done on improving your credit rating.

    With regards the transfer, you will only be allowed up a certain % of the limit to transfer (I think it's normally 90%) so £360, plus you will probably have a fee of 3% or so on top.

    I have heard that Barclaycard in particular, have a habit of only offering BT's to some customers, even if you get accepted for a card which has a 0% BT on it.

    As far as the figures go, math isn't my strong point, so I won't advise lol.
  • mochynbach
    mochynbach Posts: 33 Forumite
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    Thanks fozmcfc!

    I did wonder if I might be pushing my luck a bit re: balance transfer considering my situation!

    I'll probably look into it and update if there's any progress.
  • mochynbach
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    Excuse my poor writing, having to use on screen keyboard as the real one is playing up!

    Almost 2 months later and I've used my card and made payment (wasn't clear whether I had the interest free period, so being cautious!); a week after making payment I now have the option of balance transfer (90% of my limit of £400) with a 2.9% fee with 6.9% interest rate for the life of the BT.

    I have until November to take advantage of the 0% interest free period on purchases.

    Any advice concerning this please.....Would I be better off using the interest free period or do a BT from my capital 1 card (interest rate of approx 34%)? It wouldn't clear the balance on the cap 1 card but might save a bit and clear the cap 1 quicker ??

    thanks!
  • redpete
    redpete Posts: 4,695 Forumite
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    I'd say the short period of 0% purchases is not worth it compared with the savings of transferring £360 from Cap1. £360 at 6.9% is about £8 a month cheaper that the 34.9% would cost.

    Pay the minimum on the BC and pile any spare cash into the Cap1 repayments until you have got rid of it. Also don't use the BC for purchases until you've got rid of the £360 transferred balance then only spend on it what you know you will clear within the month.
    loose does not rhyme with choose but lose does and is the word you meant to write.
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