Will I get a Balance Transfer?

Mrs_A_2

Hi.

I'm going to be in a position where I can either pay off a loan or my CC. Both will have around £6,000 on them. At present, the CC is 0% APR but this is due to run out in April / May.

I had intended to balance transfer the CC onto another 0% card, obviously this is still the preferred choice, but I'm wondering whether I'd be accepted whilst I still have the loan and current CC balance.

I had thought about paying the loan off then applying for a balance transfer CC, but then if it is denied I'd be a bit stumped as would then be paying APR and potentially at a higher rate than my loan.

Any advice on the best way to proceed is welcome!

FYI - I earn £38,500 a year, the loan and CC are my only 'debts' aside from the mortgage (which is re-paid at £500 a month - £250 if you split it 50/50 between my husband & I). Not sure you need any other info but if you do just let me know.

Thanks.

redcard

No one knows.

bigadaj

I'd keep hold of the money, you'll have to determine what to do with the card debt in around 2 months. If you manage to get another interest free card then transfer that and pay down the loan, if not then keep the loan and pay off the card.

In the meantime you can get an annualised return of 3-5% gross on the money which will help a little.

jamesd

Given your income and assuming a clean credit record you should be fine. You don't face a do one or the other choice. You can first BT the credit card balance then do a money transfer to your current account that you can use to clear the loan. Cards such as MBNA offer suitable money transfer deals. I suggest first applying for one of their cards then, if you don't get a limit sufficient to do both, applying for another card just for BT from the credit card. Once you know whether you get that second card you'll know whether you have to use the MBNA one for the credit card or can use it for the loan or part of the loan as well.

So far as the loan goes you also have the option of seeking a 0% for purchases credit card. You can switch all possible purchases to this card and use the money to overpay on the loan. This avoids the money transfer fee so it might be cheaper depending on how long it takes to get a sufficient amount spent to clear the loan.