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Credit card for large balance transfer
Comments
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Took a chance with an online application for the Tesco 35 month 0% card with 2.7% fee...success!
Got a £4,300 limit and transferred £4,050 straight away, so here's how I stand:
£7,500 on the MBNA card at 20.8%
£5,200 on the Cahoot card at 12.95%
£4,160 on the Tesco card at 0%
£1,000 at 0% and £2,500 at 11.94% on the Barclaycard
Now, thanks to YorkshireBoy's comment, it seems that once the transfer onto the Tesco card has gone through, I could transfer the entire Cahoot balance and interest-bearing portion of the Barclaycard onto the MBNA card on a 0% until January 2017 / 4% fee deal.
Good idea do we think, or should I wait a while and apply for another long-deal 0% card?0 -
Good idea do we think, or should I wait a while and apply for another long-deal 0% card?
I would apply rightaway. Although the previous search will have been logged, it is quite possible that the existance of the new account hasn't yet been reported (and even so, it's not necessarily a problem).
You have little to lose..0 -
Applied for Halifax 37 month / 0% card with 3.0% fee...success...well, I think so anyway. It all went through OK online, but it says "assuming you clear our final checks". Is this normal?
Anyway, hopefully this will clear as I got a £9,500 limit and set up transfers for the remaining £7,500 from the MBNA card and £1,525 off the Cahoot card.
Fingers crossed!0 -
Sadly both Barclaycard and MBNA (along with Cahoot) already have the pleasure of my custom.
i was going to suggest that those too, as CS did. i didn't know there were still Cahoot card accounts in existence..
who do you bank with? perhaps Lloyds, for example?, would give you a good limit, to at least transfer a portion of the debt across:undecided0 -
chattychappy wrote: »However, if you have a smallish balance on a card with a decent limit, it could be worth clearing this as a priority. On clearing a balance, cards often come back with good 0% deals.
good point. ime MBNA would be most likely to help in this respect.. but also might have the lowerst Minimum Payment--not that that should be the priority.0 -
YorkshireBoy wrote: »You've made another one just now!
MBNA most certainly do not apply 'negative payment hierarchy'. Any payment you make will go towards the balance with the highest interest rate first, known as 'positive payment hierarchy'.
That's been true across the industry for a number of years. Indeed, MBNA were pioneers in that they started even before the industry regulators said they had to (in September 2010, 4 months ahead of the implementation date of January 2011).
Some reading for you...
https://www.google.co.uk/#q=positive+payment+hierarchy+MBNA
And some reading for you !
http://www.open.ac.uk/business-school-research/pufin/sites/www.open.ac.uk.business-school-research.pufin/files/files/PPI_working%20paper_2015.pdf0 -
Warning: In the kingdom of the blind, the one-eyed man is king.0
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Good news for me!
Just got an email from Halifax saying that the balance transfers have gone through!0 -
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Thanks
Plan is to transfer the remaining Cahoot balance and the interest-bearing part of the Barclaycard onto the now empty MBNA on a 0% until January 2017 / 4.5% fee deal, close the Cahoot card and "snowball" at the current payment amount. Starting with paying off the MBNA card, by my calculations I should have the whole debt cleared in about 4 years, paying less than £1k in additional interest, or maybe much less if there are any good transfer deals around when the 0% deals run out.
It's been a real lesson this. I'd taken my eye off the ball and got into the habit of just resigning myself to the debt and hoping that something would come along to sort it out...stupid, I know, but there you are. Feel much better having taken stock of the situation and actually done something about it.0
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