Money Transfer Cards - how many times?

ScotsGirl_2

I have just applied successfully for a money transfer card but the credit limit is lower than I wanted. Can I either ask for an increased limit or apply for a second card?

Not sure what route to go and whether it is detrimental to me financially. I need £2k more to fulfil my task. Hopefully someone more knowledgeable can advise me.

Nasqueron

Do you mean a balance transfer card?

Anyway, the limit you get is based on many factors for risk e.g. your salary, your current credit limit (and there is a sort of guideline about not giving that many people more than 50% of salary as available credit) and so on. If you wanted say 5k and you got 3k, that is what the bank judge you to be safe with - no point asking for a limit increase for at least 6 months of managing the account well and if you are getting a lower limit, I'd wait at least 6 months before applying for another card - based on available credit you might get refused anyway.

That said, any transfer to an interest free card (assuming that's what you've got) will allow you to save money on interest payments so put that saving towards paying off the other cards

kloana

Nasqueron wrote: »

Do you mean a balance transfer card?

I took it to mean cards that you can use to transfer cash into your current account. Often with similar terms to traditional CC balance transfers (i.e. 0% period, subject to 3-4% one-off fee). Of which there are only a few on the market. Like some MBNA cards - https://apply.mbna.co.uk/UKNeoCCapp/entry?sc=1OCMCPLIAC0049K&mc=OCACPL005IN

MadProf

As already mentioned it's unadvisable to ask for limit increases in the first ~6 months of issuance. Show the lender that you can manage the amount entrusted to you responsibly first.

If your credit rating is good and the first application was your first credit search in recent months then you could try to apply for a second card that offers a money transfer. You may even be successful as the 1st application may not have registered with the CRAs yet (other than the search) which gives the second lender a false sense of your financial commitments when doing their search. A bit dubious, I know, but it can work to your advantage if you can manage the given credit responsibly.

Other than MBNA as mentioned by kloana there's also:

- Virgin Money (I believe this is still partnered with MBNA so this may be difficult to get if you applied for an MBNA card already?)
- Barclaycard will occasionally offer 0% MTs (with a fee) to customers in good standing if you happen to have one

kloana

MadProf wrote: »

As already mentioned it's unadvisable to ask for limit increases in the first ~6 months of issuance. Show the lender that you can manage the amount entrusted to you responsibly first.

If your credit rating is good and the first application was your first credit search in recent months then you could try to apply for a second card that offers a money transfer. You may even be successful as the 1st application may not have registered with the CRAs yet (other than the search) which gives the second lender a false sense of your financial commitments when doing their search. A bit dubious, I know, but it can work to your advantage if you can manage the given credit responsibly.

Other than MBNA as mentioned by kloana there's also:

- Virgin Money (I believe this is still partnered with MBNA so this may be difficult to get if you applied for an MBNA card already?)
- Barclaycard will occasionally offer 0% MTs (with a fee) to customers in good standing if you happen to have one

The Tesco CC does it too. No fee, but standard purchase APR (on my card anyway, longstanding existing card), and the money transfer limit is only a fraction of your overall credit limit. E.g. I had a £2,500 limit, but only £750 for money transfers. My limit has since increased, but no idea if the money transfer element has also increased.

ScotsGirl_2

My aim was to borrow £6k to pay for home improvements and pay off car loan in April 2015. I can then pay back in over 29 months at the same amount I am putting aside for 0%, just costing transfer fee. Iam assuming that I cannot ask for further borrowing after 6 months at 0% therefore Martins tip of being able to use it as a cheaper way to pay for a car loan for example is flawed. Also, I understood it to mean that if the limit was £4k then you can transfer £4k. If I can only transfer £1k again it is pointless.

kloana

ScotsGirl wrote: »

Also, I understood it to mean that if the limit was £4k then you can transfer £4k. If I can only transfer £1k again it is pointless.

Is this actually the case for you? I mentioned the Tesco card above, but other providers have other limits. I've had two MBNA cards (at the same time) which have allowed this feature, and as far as I'm aware, you could transfer 90-100% of your limit from those particular cards ("Diamond Club" and "Fluid"...by the way, both had horrible APRs).

ScotsGirl_2

I can't seem to find the terms which state what % of the limit I can transfer. I might just have to re-think my strategy for paying off my car and installing my woodburner. I need £2.5k now and £4k in May. I may have to take a chance on managing to obtain another money transfer card in the new year.

kloana

ScotsGirl wrote: »

I can't seem to find the terms which state what % of the limit I can transfer. I might just have to re-think my strategy for paying off my car and installing my woodburner. I need £2.5k now and £4k in May. I may have to take a chance on managing to obtain another money transfer card in the new year.

I had a stove installed last year and they accepted a credit card, with no extra charges. I paid it straight off (used the card to collect rewards points, couldn't miss out on such a high amount transaction!). Could your supplier accept another credit card? 0% purchase cards without the money transfer feature are much easier to come by

Nasqueron

Barclaycard have a limit of 90% of available credit - as they charged you the BT fee to the card you did the BT to, if you could transfer 100% of the card limit the BT fee would put you over the limit

You may want to post the below to help people help you:

Annual salary
Total available credit
Total credit used
Any other debt

All are factors as to whether you will get another card or not and what limit they give you - the current card will also count against you in terms of extra credit as if you max them all out, can you pay them back (not saying you will but bank have to judge that risk)

Maybe try for a zero % purchase card if not a BT card