Is Credit Rating worth an extra 1% on BT fee?

Ben1982

Hi

Barclaycard have offered me (as a "valued customer"), a 0% Balance Transfer until August 2008 for a 3% fee. And need to take it up by September.

One thing that BC has an advantage for, is that I also requested a credit limit increase, and they've raised it from £3750 to £5000. (all my other cards that I've got recently (past 4 months) have been around the old limit).

The one I mainly want to transfer is my Sainsbury's Bank 0% purchases deal (ends March next year), but I've used ~£2200 out of the £3600 they've given me, and I think by Oct/Nov, I would have got quite near the limit.

I don't know whether to:
a) Transfer the balance now, giving me a clean slate (and not affecting my rating), for the rest of the ~8 months remaining, which should be more than enough to see me out until then. (which will cost 50% more to do)
b) Leave it and potentially cancel off the Barclaycard (probably now since it's my highest limit card it may not be such a good idea). Then get a 0% Purchases on October/November, and BT the SB one and another BT card I have that has taken on my car loan.

Obviously the other unknown quantity is what offers will be available, in October, and in March next year. When I got the SB one, it was the last in the bunch that was available (Some new ones appeared just after my application was sorted).

PS: My "Credit" isn't too bad, I have a mortgage, and the only other debts I have are on 0% Cards, but currently that amounts to more than £5000 - so not a great deal.

Any expert opinions?

Cheers

Ben

PPS: I stopped using the Barclaycard and only have £92 left (pay off each month) which I would pay off before the BT happens.

Karl.H_2

Well, this is not an expert opinion.

Look to see which card has the lowest APR if you don't pay off the debt in full each month. Then, look to see which card has the best purchase protection and other goodies. I don't suppose Barclaycard will offer you 0% on Purchases for a while? (might be worth ringing and asking.) Whichever card fails the above, Balance Transfer to that and use the other for purchasing. That way, you're using the best card for buying products.

Or ...

I suggest you keep that £5000 credit card because that limit puts you in a good light for applying for better credit cards. How about researching Capital One's cash back card and earn money on purchases (1% - 4% for a short period). Then, Balance Transfer your Sainsbury's debt onto the Barclaycard, cancel the Sainsbury's card and use Capital One for all new purchases.

Hope this helps.

Wait to see what other users say first.

Ben1982

Hi,

Not currently really interested in APR, as I'm rate tarting - almost stoozing. Though at the moment I doubt I'll be able to pay both cards off in March, worst comes to the worst I can just BT them to my Barclaycard for their normal existing customer Balance transfer offer.

I've dropped Barclaycard a note from their secure system seeing if they'll consider reducing the fee to match some of the other BT offers out there.
Will see what they come back with.

Cheers

Ben