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Balance Transfer Or Purchase?

Looking to put all my credit accounts into one lump sum so its one set monthly payment, now these are Argos, Littlewoods, Studio and New day, so my question is are these conisder balance transfers or purchases?

Thanks :)
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Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You seem to be proposing a BT of these cards to another.

    Unless you're thinking of a consolidation loan.
  • Nathan56
    Nathan56 Posts: 11 Forumite
    edited 14 April 2015 am30 9:53AM
    Having so many different credit accounts has caused me so much hassle, and im looking at getting my credit score up, i wanna clear all of my credit and start again, its roughly £400 all together, i have my reasons for wanting to do this im just not sure if this type of transaction is considered a balance transfer or a purchase.

    *EDIT*
    The problem is i do not have the greatest credit score and for a purchase card i will only get 0% for 3 months however balance transfer its 6 months at 0% obviously 6 months would be better but i dont want to get the wrong card.
  • And just in theory, if it was only a purchase card could i potentially use it for 2 months making payments and then transfer it? or can it not work like that?
  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    It sounds like you're after a balance transfer card. Regarding your last point, yes you could in theory use a 0% purchase card for buying things on, then transfer it when the 0% deal runs out.

    However, be aware that 0% balance transfer cards are not always available to those with a relatively low credit rating. And there is the balance transfer fee to consider.

    For the relatively low debt of £400 in total you may be better just cutting your outgoings and paying as much as you can to the existing debts - the balance transfer fee may wipe out a large portion of any saving you make.. You could clear it in a few months if you put your mind to it.
  • With a Balance transfer card ive read that it will ask you if you want to transfer any balances to it, these arent cards though so will i still be able to do it?

    I had a Major issue with one of my credit accounts, i missed a payment so they cancelled my D/D (which i wasnt aware off) they then sold on my account to a new company, i recieved a letter from the new company (New Day) saying that they are taking over the account and i wouldnt have to worry etc. and i didnt but 3 months later i recieved a letter saying i had defaulted 3 times so not only did i miss the payments (£30 each) they had charged me interest on the balance which had added a bit to the balance, this account should have been closed 4 months ago and every month its not closed my credit score is dropping.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Nathan56 wrote: »
    Looking to put all my credit accounts into one lump sum so its one set monthly payment
    I would be wrong if I didn't point out that this is rarely a good plan unless you know where these debts came from and have a plan to not rack them up again. But you say in another post that you have your reasons for wanting to do this so I'm happy to assume that you've thought it through.
    If you're not aware of the problems then please ask.
    now these are Argos, Littlewoods, Studio and New day, so my question is are these conisder balance transfers or purchases?
    Ok, there are four types of transaction to consider.
    1. Purchases - You contact the company you owe money to and say you would like to pay on credit card. Are you able to pay the companies that you owe like this?
    2. Balance Transfers - You contact your new credit card company and ask them to pay off your old credit card. You are charged a transfer fee. This can only be done to pay off credit cards via their credit card number - which of your credit accounts would this apply to?
    3. Money transfers - Like a Balance Transfer but pays money into your current account. Unlikely to be available to someone with a low credit rating.
    4. Cash advances - You take your new credit card to the cash point and withdraw cash. This should be avoided in nearly all cases.
  • Alot of these are from one off purchases made at a time when i had money to pay them, since then ive gone through 3 jobs and am now stable, like i said 2 of these credit accounts are accruing interest and making it harder to pay off.

    i have no cards for any of these accounts so it sounds like a purchase would be the only option, i have used the Eligibility checker and i am 80% likely to be accepted for the 0% purchase for 3 months and 70% likely to be accepted for the 0% 6 month balance transfer.

    my credit score is being affected by the account i cant catch up, so by paying it all off using a credit card it would stop my credit score dropping correct?
  • Candyapple
    Candyapple Posts: 3,384 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    No, you don't need a purchases card as you are not buying anything.

    The accounts you mentioned are shopping/catalogue accounts.

    What you need by the sounds of it is a money transfer card eg MBNA whereby the funds would be transferred to your current account and you then use those funds to pay off your respective catalogue accounts.

    However, since you mentioned you have a poor credit history, there is a slim chance you are likely to be accepted for it.

    There is no such thing as a credit score by the way.

    So judging the situation with logic, it appears that you won't be able to get a money transfer card so you are now stuck with having to find the money elsewhere to clear your debts.

    I would suggest starting with posting over on the Debt Free Wannabee forum with a statement of affairs and ask for their help to decrease your outgoings so that you can throw extra into clearing your debts as a new credit card doesn't look likely.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • Nathan56
    Nathan56 Posts: 11 Forumite
    edited 14 April 2015 am30 11:03AM
    So with the accounts if i use the pay by card facility it does bring up a credit card option?

    *EDIT*

    Okay last question: i have an Argos card, is that considered a type of credit card? that's where the bulk of my debt is (260) but i'm accruing interest can i use that to balance transfer? (on my Equifax report it shows as a credit card and i do have a physical card)
  • Candyapple
    Candyapple Posts: 3,384 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Nathan56 wrote: »
    So with the accounts if i use the pay by card facility it does bring up a credit card option?

    OK, if you can pay by credit card, then yes you would need to apply for a purchases card.

    I didn’t think with shopping/catalogue accounts you could pay your balance by card, just thought it was bank transfer, DD or cash over bank counter, so I stand corrected.

    Have you checked that all 4 companies you are able to pay them off by credit card?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
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