another credit card or loan which one!

glitzy

Impomdasp wrote: »

Hi glitzy

I'm following your thread with interest as Robflh's advice is also helping me with my card juggling(although you and I haven't all the same cards but the principles at the same). Keep up the good work between you:beer:

If it's the normal Tesco Credit Card you have it's probably like the one I have. You don't have to use it in Tesco, it's not a loyalty card although you get 'points' from using it as it can also be used as a Clubcard. But you can use it anywhere like any old Visa/Mastercard Credit Card, even in Asda:rotfl: . You get more points each time you use it in Tesco but still get some when you use it at other places too. I try to stick to my Tesco Credit Card for most of my spending nowadays as the points I get are always handy. If you don't want to spend them yourself you can convert them to 'deals' and sell them on eBay which is what a lot of DFWs do.

Hope this helps a bit Imp

Hi imp

think i read some of your ideas on the sky+ thread a few months back - my tescos card i can only do purchases at 0% for three mths, but 12 mths at 0% at Tescos.

How do i put my anecdotes at the bottom of my reply + why do i have a tick by everything i reply to?

trfn

Robflh

Hi glitzy Hi Impomdasp

According to the Tesco website, you can get 0% on non-Tesco purchases for the first three months and 0% on Tesco purchases & BT’s for the first twelve months.

http://www.tescofinance.com/personal/finance/finance/creditcards/index.jsp

After the 0% offers end the interest will be 16.9% on the outstanding balance. Therefore, after three months, any non-Tesco purchases will be at 16.9% and after twelve months all the outstanding balance/s will be at 16.9%.

About two months before the Tesco and HSBC 0% offers are about to end, apply for another credit card that has a 0% offer for more then six months. If you can get a new one, transfer as much as you can from the Tesco and the HSBC cards to the new card.

If you cannot get a new one then about one month before the Tesco and HSBC 0% offers are about to end, ring IF or whatever card you have that has enough available credit on it and ask them what percentage rate they can offer you for a balance transfer. glitzy has enough of a credit limit on the IF card to transfer both the Tesco & HSBC balances.

You are looking for a low APR for the life of the balance. 0% for six months is only ok, if you transfer that balance when the six months is up or if you can pay off the balance in six months to a year. 0% for six months and 20% for six months makes it 10% over a year.

These days there is normally a transfer fee of about 2%. If you pay off the debt in twelve months, it will have cost you 2% on top of the BT APR. If you pay off the debt in six months, it will have cost you 4% on top of the BT APR. If you pay off the debt in 2 years, it will have cost you 0.5% on top of the BT APR

The examples above are not totally accurate but they are a good indication of what happens.

It is all about watching what you spend, so that you stay within a budget and paying as little as possible in interest each month. Both will allow you to pay as much as you can each month off your outstanding debt.

Always pay any extra money off the card with the highest APR and BT’s are a great way to save on the amount of interest you are paying.

So, if you have cards A B C & D you can do a BT from D to C, then from C to B, then from B to A and finally a BT from A to D. All four cards are now at a low life of the balance APR’s.

Unfortunately, not all credit cards will let you do a BT. Just because they are advertising it on their website does not mean you will be allowed to do a BT. So, always ring them and check first. I learnt that one the hard way.

Ps. Impomdasp if you start your own thread, I will try to help you as well and post a link to to it here or send me a private message.

glitzy

Robflh wrote: »

Hi glitzy

There is always something that spoils the perfect plan.

You have not said where you transferred the Tesco £2,000 but it should have been transferred to the Mint Card. Once the transfer has happened, you should have less then £160 left on the Tesco card. You need to pay this off if possible.

With nothing left on the Tesco card, transfer £2,250 from the If card to the Tesco card or as much as Tesco will let you. The IF card will now be the card you pay off each month.

Now we are back at the original plan.

Transfer £1,300 from the HSBC card to the Mint card and then pay for the holiday with the HSBC card. Effectively the holiday will be at 5.9%. Oh and do this now.

Transfer £1,100 from the Tesco card to the Mint card. Tesco purchases are at 0% for the first twelve months, so use the Tesco card to buy all your food and anything else you can buy from Tesco (Lottery).

You would only need to do this for about three months and then the Tesco card will have little if any available credit. Then you can go back to paying cash for your food bill or buying it with the Amex card and paying it off at the end of the month. Effectively it is the same thing.

In the time it will take you to use up the Tesco card, you should have cleared the overdraft.

Hi Robflh
Thanks again, but abit confused about paying for hols on hsbc card as purchases are 0% until 11.11.07 - what happens after then )if i have not paid it off), how do they charge me int etc, as you can guess i have never used a card other then bts or to pay in full. Am going to wait until monday to bt if as mint said it would take 5 days for tescos to go through. trfn

glitzy

Wow Robflh

You beat me to it - as i was posting my reply you got in there first, sorry you dont have to reply to mine - i think i get the geist - if i pay for hol with hsbc 0% will run out 11.11.07 so i will probably pay for it with am ex and bt to hsbc.
trfn

Robflh

Hi glitzy

I have just been reading about cash back credit cards. This one might be worth applying for. http://new.egg.com/visitor/0,,3_79731--View_1654,00.html

Once you have done all the balance transfers, it would replace the IF card as your monthly spending card. As long as you pay off the balance each month, you will earn cash back on your spending and pay no interest.

I am assuming that the Amex cards you and your OH have, are the ones with cash back.

How are the BT’s going?

glitzy

Hi Robflh

Abit worried about applying for another card at the mo, cos of Goldfish turning me down - but i do like egg, have used them in the past - am ex do give us cashback, already had ours for this year unfortunately!

Having problems bt if to a card so am going to have to use tesco as my card as its a mastercard.

Another spanner in the works, my oh is a numpty! He took £10 out the other day, which is not in my budget. Knew i had a dd to come out soon but no statement 2nd month running so phoned them up, they said 21st, thought i would go and pay £5 into a/c today as that was how much we were short. Post arrived a/l have charged me £25 for paying for dd, great - happy days!
Phoned tesco to double check the lady said if i send letter in with copy of statement, might get the £25 from them - worth a letter.

Having to take £30 out of Daughters a/c to cover charge as a/l charge every 3rd day i think - extortionate! Great start to weekend1
trfn

Robflh

Hi glitzy

The EGG card was something to remember later.

Unfortunately, being so close to your limit all the time, means you have to be very carefully and keep an exact record of what is going out and what is coming in.

The other month I made my Mint payment a day or two late and on the next statement they charged me for a late payment. That put me over my credit limit, so they charge me for that as well.

I have a mini SOA, which has the date of any DD’s or SO’s, who it is for and how much it is. I then regularly check my bank account on line to ensure I have enough. However, I do not have anyone else that can take out money without telling me first and once all the BT's have been completed that will not be a problem.

Balance transfers can take up to ten days, which means the Tesco balance should drop in the next few days. As soon as it does and if you can, pay off the rest of the outstanding balance.

Once the Tesco card has very little on it if anything, transfer as much to it as you can from the IF card.

By now, you should already have started a balance transfer to the Mint card from the HSBC card for £1,300. If not do it now, as this will free up enough money to pay for the holiday.

glitzy

Hi Robflh

Cant bt if to tesco/mint as they are under the same co and mint/tesco do not recognise the if card probably as it is an online bank - not sure just guessing!

Thought i should not do anything with tesco card as it is the card i can use when shops do not take am ex and the bt to mint from tesco has gone through already! Plus thought i'd pay for hol on am ex card (cashback) and bt to mint from there - how does that sound?

Robflh

Hi glitzy

I am now confused. You transferred £2,000 from the Tesco card to the Mint card. Is that correct?

Which two are the same company?

taxi73

Does the tesco card come under hbos or rbs....if are part of the hbos group.this may be what she means