Current 0% interest ends soon (November)

grholden

6th November.

I know that £100 isn't going to make any kind of substantial dent - but it's all we can afford.

Like I say, my intention is to BT it a few times on 15monthers (or thereabouts) on lower fees than going for a 28monther on a higher fee.

Thanks for the advice guys.

janiebquick

I think you should get this applied for around the beginning of October.

YorkshireBoy

grholden wrote: »

Like I say, my intention is to BT it a few times on 15monthers (or thereabouts) on lower fees than going for a 28monther on a higher fee.

I think you're going about it the wrong way, for a couple of major reasons...

1. What happens if your circumstances change in a years time, and you can't get another card? The increased BT fee payable now, for a longer duration, equates to around 6 weeks interest at standard rates.

2. Taking a longer duration now means you've a much smaller BT fee payable for your next transfer in 2 years time.

But you've obviously done the maths...you have, haven't you?

MisterMotivated

YorkshireBoy wrote: »

£100 isn't going to make a big dent in £4K over 15 months.

It'll make around a £1,500 dent, minus the BT fee, which not exactly peanuts.

Sharon87

If I were you I'd apply for the longest length not the smallest fee. But be warned you may not get the limit you want. I wanted to transfer just under 2 grand, but wasn't sure if I'd get the amount. I said I wanted to transfer a grand, I got accepted with a £3700 limit! But another card (applied the same night before Barclaycard) I said transfer the whole lot, I got rejected, not sure if the amount had anything to do with it though...

I just done another transfer. Just something to keep in mind when applying for a new card

grholden

YorkshireBoy wrote: »

I think you're going about it the wrong way, for a couple of major reasons...

1. What happens if your circumstances change in a years time, and you can't get another card? The increased BT fee payable now, for a longer duration, equates to around 6 weeks interest at standard rates.

2. Taking a longer duration now means you've a much smaller BT fee payable for your next transfer in 2 years time.

But you've obviously done the maths...you have, haven't you?

Is the balance transfer fee payable up front, or is added to the debt on the card?

I see your point, I have two options for the forseeable future (let's call it 2 years) really:

A) Do a series of shorter length, lower fee options: £4000ish at 0.8%ish makes it £4030ish. Paying off £100 a month, this will be a deduction of roughly £1500 over 15 months. This will take it down to £2500. If I'm allowed and in a position to the same again, this will then be an outstanding balance of £2530 which will need another small fee added to it, let's say it takes it back up to £2600 - and so on.

Do as you say and go for a much longer deal - say 27 months at 3%, this will take my existing £4000 up to £4120. Over 27 months or so, this'll reduce to something like £1420.

I totally see your point and thank you for your advice - it's best to 'lock in' now to a good deal kind of thing?

YorkshireBoy

grholden wrote: »

Is the balance transfer fee payable up front, or is added to the debt on the card?

It becomes part of the balance.

it's best to 'lock in' now to a good deal kind of thing?

There's a bit of competition at the moment with BT fees (and with duration as well, which is unusual at the same time as BT fee discounts/reductions). We don't know if that competition will still be there in January 2015, let alone in November 2015.

A bird in the hand and all that!

MisterMotivated

Actually, the lower fee/shorter term is slightly better financially (more so if comparing to a 3% rate than the better 2.4% rate available). A benefit of going for the longer term-higher fee option would be that you're lengthening the time before you have the bother of going through the transfer process again. Also, with each balance transfer, there's the chance of effectively wasting/losing some of the 0% period during the transition, eg if you transfer 5-6 weeks before your current 0% deal ends.

Also, it would mean less credit applications on your file (though even once every 15 months isn't going to set alarm bells ringing).