Credit Building - Balance Transfer

mcscoobs

Hi,

I currently have 3 credit cards - 2 of which were for credit building (I used to have extremely poor credit) and 1 of which hasn't been used (Barclaycard).

The 2 cards used (Capital One & Vanquis) for almost on their limits. One has a limit of £800 (Capital One) and is roughly 30% APR. The other (Vanquis) has a limit of £3000 and has 34% APR.

The Barclaycard has 0% interest balance transfer for 15 months and a limit of £1200. I think after 15 months, it goes up to 24% APR from memory.

I feel like i'm constantly firefighting with my Vanquis card. I never use it, I pay £150 a month off it as minimum payment, but the interest each month pretty much cancels my minimum payment.

I pay £50 off Capital One each month and interest is £30 a month, so the dent i'm making in that is tiny, but much more manageable.

My question is this. Would I be better off transferring the total Capital One balance and £400 from Vanquis (maybe then closing the Capital one account?) or do I transfer £1200 from the £3000 balance of the Vanquis card?

After 15 months, when the 0% offer ends, what are my options then?

Thanks :T

MrSilk

£1200 from Vanquis would be my guess, and cary on paying £50pm towards Capital One.

But you need to be careful if you want to apply for an interest free credit card as they may decline you on the basis that you are near your limits, whether it's your intention to do a transfer or not. :eek:

YorkshireBoy

There seems to be some inaccuracies in your figures...possibly your APRs?

For example, at 34.9% APR the Vanquis monthly interest should be (£3K x 2.5261% £75.78

And you say the Capital One interest is £30 a month. However, at 30% APR the monthly interest should be (£800 x 2.2104% £17.68

Unless the rates you've quoted are for purchases and your balances are predominantly due to cash advances?

As to what you should do, I'd shift as much as I could from Vanquis, and aim to get Capital One down to around £500 by the time you need to make your next BT.

mcscoobs

YorkshireBoy wrote: »

There seems to be some inaccuracies in your figures...possibly your APRs?

For example, at 34.9% APR the Vanquis monthly interest should be (£3K x 2.5261% £75.78

And you say the Capital One interest is £30 a month. However, at 30% APR the monthly interest should be (£800 x 2.2104% £17.68

Unless the rates you've quoted are for purchases and your balances are predominantly due to cash advances?

As to what you should do, I'd shift as much as I could from Vanquis, and aim to get Capital One down to around £500 by the time you need to make your next BT.

Ahhh you're probably right - I'm at work now and don't have my statements with the correct rates on, was just an estimate. I know Vanquis had a horrendous rate!

Thanks for the advice, i''ll concentrate on Vanquis and clear that down ASAP!