Balance Transfer query

skyblues11

Hi guys ! Hope you are warm where ever you are!

I am a B.Tr. newbie and have a query that no one seems to know how to answer.

I have a 7K GBP debt that I'd like to move to another card that offers 0% . I also have a 3K GBP cash lump sum available to clear a part of the debt.

My question is , is it better to pay the debt first, and then apply for a transfer of 4K? After all, a lesser amount should reduce the chance of rejection, right?

Or should i just transfer the whole 7k to a new card provider, and then pay them the 3K at the beginning, and the remaining 4k over the period of X months?

my instinct points me to the first method, but i would like to have a second opinion.

i am still waiting for my experian pin number, so have no idea or access of my credit score and such info.

I am sorry if this query sounds dumb. I only got savvy and informed very late in the day.

thanks in advance.

Paully232000

If you are going to pay £3K off anyway do it now before the transfer, as to transfer £3K more than you need to (and pay the associated extra BT fee), when you are then going to pay it off on the new card is not the wisest imho.

skyblues11

thanks Paully, I was also thinking along the line of, if i end up with less debt, i would be able to get cards with a longer 0% period.

grumbler

Paully232000 wrote: »

If you are going to pay £3K off anyway do it now before the transfer, as to transfer £3K more than you need to (and pay the associated extra BT fee), when you are then going to pay it off on the new card is not the wisest imho.

In this case, after paying and before applying it makes sense to wait until the new balance is reported to CRA(s).

skyblues11

grumbler wrote: »

In this case, after paying and before applying it makes sense to wait until the new balance is reported to CRA(s).

but how long would it take for the new balance to be acknowledged? After paying, would I not incure further interest if i crossed the end of month deadline?

Experian_company_representative

skyblues11 wrote: »

but how long would it take for the new balance to be acknowledged? After paying, would I not incure further interest if i crossed the end of month deadline?

Hi Skyblues11,

Most companies update information with credit reference agencies monthly, our Ask James page covers this in more detail here.

Once you have got your Experian report we will be happy to help with any questions about the information recorded and wish you luck with your transfer in the meantime.

Kind Regards
Neil