Transfer or Not Advice please?

Susie-Anna

Hello,

I am hoping for some advice, because I am no good with maths!! lol

My me & my husband have about £1880 on a credit card where the 0% interest has just ended. The APR will now be 23.9%.

Luckily he has just got a new job with a much higher wage meaning we should now be able to pay this card off in 7-9 months.

We found the RBS Platinum credit card saying it is only 1% Balance Tranfer fee and then interest free for 13 months, we would definately (unforseen circumstances permitting) be able to pay this card off in that time.

So I just need to know whether it is worth trying to apply for this RBS card or even another 0% card with up to 3% transfer fee? Rather than just stick with this card as will hopefully be paid off in 7 months time? Approx £250-£300 should be able to be paid off it every month.

I'm sorry if this question makes me look thick, but I have mental health condition and numbers aren't my strong point. Working out APR in comparision to an overall transfer fee I have no idea how to do that & whether transferring as is the best thing to do or not? Also as to whether it would have any adverse effect on credit rating apply for another new card so close to paying off? Even though we would close the current credit card account as soon as a transfer was complete.

Thanks in advance for any advice you can give, is just a bit too much of a minefield for my brain at the moment, usually we just transfer to another 0% card each time it ends, but this is the first time we have had a real chance to be able to clear the debt completely. :j:j

[Deleted User]

You'd certainly save money if you could BT it to a 0% card and its going to take you a few months to pay off otherwise. You're paying a little under 2% a month on the balance currently.

Be aware that you can't transfer between cards from the same stable though - so if your current card is issued by RBS, you would need to find a different one (eg MBNA, Barclaycard, etc).

Susie-Anna

Thanks thats good to know. The card we want to transfer from is with Halifax, however I have a Natwest card that I use for purchases and pay off in full every month. Does this effect us getting the 0% deal? So even if we had to apply for say the current Lloyds card at 1.5% instead we would still be a tiny bit better off than staying as we are at about 2% a month? (I see now it is devide the APR by 12 to see what you are paying each month.) Although that would reduce as the balance reduced by £250ish plus a month so is there really much in it?

Thank you for replying.

Susie-Anna

Yes I see that last statement was a bit silly now because 1% or 1.5% of the total amount and then 0% until paid off, OR almost 2% of total amount in this month alone, even if total reduces next month will be another 2% of £1550 and so on. Thanks for helping to make that clearer for me. Some days I just can't see the wood for the trees.

[Deleted User]

Yes, you'll save if it takes you more than a couple of months to pay off. The BT fee is a one off, compared to paying interest on a monthly basis (though as you say, the interest you actually pay declines each month with the balance.

So you need to compare 2-3% BT fee on £1880 and no further interest for the promo period, compared to ongoing interest of 2% on £1880, then 2% on (say) £1600, then 2% on £1400 and so on.

But the Lloyds one won't be suitable as Halifax is part of that group, and I think I'm right in saying that they don't allow transfers between the two. Check on their site to be sure though.

Edit: I see you got there before me!

Tixy

It might be worth contacting Natwest to ask if they can offer you the same 0% transfer deal as RBS advertise on your existing card.
They might and that would save you having to try to get another card.
Although if you do that then don't spend on the natwest card until the transfer debt is repaid.

In terms of fees, on your existing card if you pay off say £250 a month for 8 months (and then pay the remaining balance of about £50 in month 9) it would cost you about £180 in interest.

If you can balance transfer for 1% it will cost you £19, even if you pay 3% balance transfer fee (£56) you would still be saving money.

Susie-Anna

Thank you so much to you both for your brilliant advice, that has helped makes things so much clearer. I will check on the Halifax/Lloyds link too. Hope you both have a lovely weekend.