About to transfer my balance to 0% - should I tell the bank I have the debt with?

Mindfull

Hello!

I hope that this is not something already covered elsewhere but I am wondering if it might be prudent to let Natwest (whom I currently have a Mastercard with) know that I am about to perform a balance transfer, or that I am am looking to perform one.

Might this lead them to lower the interest rate permanently or offer some other opportunity as I am swapping from them to somewhere else?

This is the first balance transfer I will have undertaken and I am just a little wary of how it all works!

Many thanks and helloo!

Mindfull :-);)

eskbanker

Welcome!

There's no harm is asking them if they'll reduce the rate but it's unlikely they'd put it to 0%, so if you already have a 0% alternative lined up that takes care of your entire Natwest balance then why wouldn't you just go ahead with the balance transfer as planned?

If/when you do a balance transfer, you're under no obligation to tell your current provider, the process is automated, have a read of http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards#video for more info....

Nasqueron

Make sure your direct debit (if you have one) is not set to pay large amounts on the old card either as they can take payment even after the BT is done leaving your account in credit

Mindfull

Thank you so much!

I think I might try ringing the bank first just as even though I've been offered 0% on purchases for 6 months with my new balance transfer card I've got a feeling any purchases will be paid off after my 0% balance is transferred (ie if I didn't pay off all of what balance I transferred before the 6months was up I would begin paying interest charges on my purchases.A very sneaky tactic I have heard of)

Just thought maybe sometimes the bank might reduce your APR if you say you're looking elsewhere and then it might mean you have access to borrowing at a lower rate if you need it before you've paid off your transferred balance. The plan of course is to pay it all off as debt is debt but I just wondered if this was anything anyone had ever tried..bit like when you phone your mobile phone provider and they persuade you to stay with special offers.

I suppose it doesn't quite work like that with banks but I thought if my bank think that I'm going to apply elsewhere they might try and hedge their bets by lowering my rate and then they might think they can at least get some interest out of me (even though I'd just move to the 0% anyway..)

I suppose they might be able to check my credit file and see I've already got the other card tho so it might not work.

Think I might try and then just see what they say. I'll post up what happens! :cool:

King_Of_Fools

Mindfull wrote: »

I think I might try ringing the bank first just as even though I've been offered 0% on purchases for 6 months with my new balance transfer card I've got a feeling any purchases will be paid off after my 0% balance is transferred (ie if I didn't pay off all of what balance I transferred before the 6months was up I would begin paying interest charges on my purchases.A very sneaky tactic I have heard of)

You are right that you should not mix purchases on a balance transfer card with a balance transfer.

However, if you have been offered the balance transfer card then use it just for that purpose for the first 6 months and put your new purchases on your old card that you transferred the balance from. If you pay the new purchases off in full on the old card and just the minimum payment on the balance transfer card then you will not pay any interest.

Orps17

Hello I don't really understand any of what's going on but very much need a question answering.

I'm wanting to apply for another credit card to pay off my old one witch I believe is called a balance transfer, when it comes down to them asking me why I want this card, do I need to make something up or tell them it's to pay off another credit card ?

Many thanks 😃😃😃

boo_star

King_Of_Fools wrote: »

You are right that you should not mix purchases on a balance transfer card with a balance transfer.

However, if you have been offered the balance transfer card then use it just for that purpose for the first 6 months and put your new purchases on your old card that you transferred the balance from. If you pay the new purchases off in full on the old card and just the minimum payment on the balance transfer card then you will not pay any interest.

There's not really an issue using a BT card for purchases as long as you pay off the purchase amount in full every month.

It's been several years since CC companies used the "lowest % balance first" system.

Of course I suppose that two cards reporting balances and payments is better than one.

ricky_v

Orps17 wrote: »

do I need to make something up or tell them it's to pay off another credit card ?

Many thanks 😃😃😃

The only purpose of a 0% BT offer is to transfer the debt from one card to the other, so you might as well tell them it's to pay off debt from another card.

The reason why CC companies offer 0% promotions is so they can charge interest if you forget to pay the balance off before the promotion ends.

Mindfull

Hello!

Thanks for all your replies..I just rang my bank and asked them what they might be able to do for me and they said I was welcome to apply for another card with them which would not be 0% but would be lower, but they could not reduce my APR, 15.76%, on the card I've just transferred from.

Natwest said they don't offer any 0% cards anymore..(think that may have been a little fib don't you?!) and the prospect of me going elsewhere for 0% didn;t seem to make a difference.

Soo...balance transfer just done on Barclaycard, phew!

But my question now is...what happens with the transfer fee? Will that now start accruing interest if I don't pay it off today or does the whole amount including transfer fee fall under the 0%?

Thanks so much and hope my investigations might have been helpful!

Alexd52

The transfer fee is added to the balance and is part of the 0% interest. So you now just have to concentrate on paying it off within the interest free period

Mindfull

Thank goodness I can breathe a little easier now! Although the months fly by so quickly..time for discipline!

:beer:

Ooop..no I said..discipline...! :eek: