Balance transfer question

*Scarlett

Hi all

I was thinking of transfering balances from other cards to my Barclaycard. The are offering 0% until July next year.

The transfer fee is 4.9% .

I have 3 cards with a balance -
Virgin MBNA 420 approx
BMA MBNA 184 approx
Amazon MBNA 681 approx

Have I calculated it right that it would be about £63 transfer fee?

I have been trying to find the interest rates on the cards but all I could find was the Amazon card has a standard monthly rate of 1.333% - no idea what this is as APR.

I just know that I have paid approx £10 interest on this card for the past couple of months.

In my own head I think it is worth transfering the balances (as it is unlikely they will be cleared within the next few months) but I just wanted to ask if anyone had any other opinions or options as my maths is not the greatest!

Tixy

1.333% is 16% APR (here for a calculator - http://www.stoozing.com/calculator/apr-rate-converter.php)

You really need to know the APRs on your other cards as well to decide.
It does depend on how much you can pay off the debt each month as to whether its worth transferring them all or some of them (for example you might not want to transfer the smallest card if you could pay that off in 1 month and just pay the minimum to the new card).

Herbalus

4.9% is very expensive as far as a BT fee go. How is your credit history? You would be better applying for a new card if you thought you would be accepted. For examples Lloyds are offering 15 months 0% for a 1% fee. And fluid are offering 15% months 0% for 1.5% fee: http://fluid.co.uk/low-fee-balance-transfer-card/

With fluid you may have a better chance. They do a soft search before you apply to indicate if you might be accepted.

The interest rates for your cards will be on your statements. If it's a low figure, multiply it by 12. For example 1.333 multiplied by 12 is 15.9%.

YorkshireBoy

Herbalus wrote: »

...fluid are offering 15% months 0% for 1.5% fee: http://fluid.co.uk/low-fee-balance-transfer-card/

With fluid you may have a better chance.

Fluid is run/underwritten by MBNA. OP already has 3 MBNA run cards, so an application here may be fruitless. Even if successful, the debts would have to be repaid via 'money transfers', meaning a 4% fee would be payable...not 1.5% for a standard BT.

Better to try elsewhere?

*Scarlett

Thanks for the replies - good info.

The other card I was looking at was tescos. They seem to have e few offers at the minute with more reasonable transfer fees.

http://www.tescobank.com/creditcards/

The only thing is that I used to have a Tesco card years ago (at least 5 yrs) and it was closed I think due to lack of use - I must have had it for some sort of 0% offer before and stopped using it when the offer ran out.

Would this have a bad effect if applying for a new one?

My credit rating is fine as far as I know. I've never had any issue in the past when applying for cards, loans, etc and no missed payments or defaults.

In fact that's another thing that could be an issue - I probably have too many cards / available credit as opposed to my income!

I guess the only thing to do would be apply and see what happens.

The Lloyds one is interesting too.

YorkshireBoy

*Scarlett wrote: »

Would this have a bad effect if applying for a new one?

No. From memory the 'wait' time is either 8 or 12 months...I forget which for that card.

In fact that's another thing that could be an issue - I probably have too many cards / available credit as opposed to my income!

Unless you have other cards, or the limits on the 3 above are very high, you must have a low income then?...because you're only nudging £1.3K of debt on those.

*Scarlett

The limits on the 3 MBNA cards are £1.5k each approx.

The Barclaycard has a limit of £5.2k.(zero balance) I have another Barclaycard at about £3k (zero balance), c/c through my own bank £2k (zero balance), Santander £2k (zero balance).

I tend to take these cards out for promotional offers and then not use them when the offer runs out (except for my bank c/c which I have had for years).

I guess I am on a lower income - I work part time - ann salary approx £14k so this available credit is biggish compared to my income :eek:

I know I should have closed some of the cards that I am not using but I always think "maybe I'll need it"

Thanks YorkshireBoy for the info on the time frame applying for a new card as well.

rabbit_burrow

If you are keeping available credit of £12.2k because you're thinking "maybe I'll need it", have you thought about "how I would pay back that amount if I used it?"

*Scarlett

rabbit_burrow you are so right! But I've always had this sort of credit. It's not that I think I'll borrow £12.2k tomorrow and have no way of paying it back. More like a £300 bill for car MOT - yes that happened and put on a card :mad:

And people are always saying it's so hard to get new credit. I guess that's why I've kept these cards.

jessbob

*Scarlett wrote: »

Thanks for the replies - good info.

The other card I was looking at was tescos. They seem to have e few offers at the minute with more reasonable transfer fees.

http://www.tescobank.com/creditcards/

The only thing is that I used to have a Tesco card years ago (at least 5 yrs) and it was closed I think due to lack of use - I must have had it for some sort of 0% offer before and stopped using it when the offer ran out.

Would this have a bad effect if applying for a new one?

No it doesnt make any difference. I had a Tesco Credit Card up to around 18 months ago, but cancelled through non-use.

I applied for a new Tesco Credit Card only last week in view of the 0% offer and was accepted straight away:)

*Scarlett

Well holy mackerel! I have a new Tescos card and all balances transfered.

The card limit is £7.4k - much more than I needed or wanted. A bit odd.