MoneyTransfers on CC's affect score?

Tozom

The mrs seems to think it is looked at unfavourably on your score if you money transfer on a card, is there any truth behind it? I am considering getting one of the 0% ones so I can buy a new motorbike.

I did already apply for a 0% spending card which was accepted and i now have the forms to sign but I only just noticed that the min payment is 2.25% rather than the 1% i wanted to pay. If I apply for the virgin money transfer one now would it likely to be accepted? I was thinking i could hedge my bets and have both… one for spending in the future and the transfer for the bike only.

We are looking to remortgage in the new year so the mrs is concerned my wheeling and dealing would affect this.

Strummer22

Tozom wrote: »

The mrs seems to think it is looked at unfavourably on your score if you money transfer on a card, is there any truth behind it? I am considering getting one of the 0% ones so I can buy a new motorbike.

I did already apply for a 0% spending card which was accepted and i now have the forms to sign but I only just noticed that the min payment is 2.25% rather than the 1% i wanted to pay. If I apply for the virgin money transfer one now would it likely to be accepted? I was thinking i could hedge my bets and have both… one for spending in the future and the transfer for the bike only.

We are looking to remortgage in the new year so the mrs is concerned my wheeling and dealing would affect this.

I personally don't know how much effect if might have, but if you're remortgaging in 2017, that's already quite a long time for the effect of your new credit to lessen. If you want credit, I'd get it now rather than waiting until later in the year.

Do you need to pay cash for the bike? In most situations paying by credit card would be better - section 75 protection, for starters. I feel buying it on the 0% spending card would be a better option for you.

Tozom

Some of the garages are charging 2% credit card fee but the money transfer fee is only 1.69%. Suppose its not that much difference over £4k but i'm tight

Having cash widens my options of going private but also its the fact the Sainsburys card i got has a higher min payment. But i suppose i could just apply for a different one. If i haven't signed the forms and then go and apply with a different company, will this have a negative effect also?

Strummer22

Yeh the 2% fee is a consideration! Rip off isn't it. At least there's now some regulation on these fees, I remember the days when airlines would charge you 5% or something stupid to get a flight on a credit card. And that's something you'd really want section 75 protection on.

Anyway, as to whether the money transfer or an aborted application will have much effect on your credit file or your remortgage terms, I'm afraid that's beyond my knowledge. Lender criteria vary so much and are so opaque. Maybe a friendly mortgage adviser will come and see this thread and help you out.

Superscrooge

Tozom wrote: »

The mrs seems to think it is looked at unfavourably on your score if you money transfer on a card, is there any truth behind it? I am considering getting one of the 0% ones so I can buy a new motorbike.

I did already apply for a 0% spending card which was accepted and i now have the forms to sign but I only just noticed that the min payment is 2.25% rather than the 1% i wanted to pay. If I apply for the virgin money transfer one now would it likely to be accepted? I was thinking i could hedge my bets and have both… one for spending in the future and the transfer for the bike only.

We are looking to remortgage in the new year so the mrs is concerned my wheeling and dealing would affect this.

I think the mrs is right. Taking on new debt is not going to help you get the best remortgage deals.

I would wait until after you have re-mortgaged before buying a motorbike on credit

Westminster

As long as your bike is between £100 and £30k, then spending just £0.01 on a credit card (with pretty much whatever percentage the dealer wants to charge you) and the rest in cash / debit card etc will afford you full section 75.

So you don't need to incur the 5% (or whatever) credit card surcharge on the full balance of the purchase.

Candyapple

The mrs seems to think it is looked at unfavourably on your score if you money transfer on a card

The answer to your original question is your Mrs is wrong. Money transfers on promotional rates are dealt with no differently than 0% balance transfer offers and will not affect your credit history.

Strummer22

Candyapple wrote: »

The answer to your original question is your Mrs is wrong. Money transfers on promotional rates are dealt with no differently than 0% balance transfer offers and will not affect your credit history.

Just so I know I definitely understand this...

Cash advance (e.g. withdrawing cash from your credit card from a cashpoint) is very bad and attracts exorbitant fees, as well as being seen by creditors as evidence that you can't handle your money properly.

Money transfer on a 0% deal is fine, and not evidence that you're crap with money.

Correct?

Candyapple

Stu_N_ wrote: »

Just so I know I definitely understand this...

Cash advance (e.g. withdrawing cash from your credit card from a cashpoint) is very bad and attracts exorbitant fees, as well as being seen by creditors as evidence that you can't handle your money properly.

Money transfer on a 0% deal is fine, and not evidence that you're crap with money.

Correct?

Short version - yes.

Longer version - specific overseas cards e.g. Creation Everyday card, Halifax Clarity etc. where you would be encouraged to use it to withdraw cash and carries no such penalties, would not be viewed as you can't handle your money.

I can report having used the above 2 cards whilst abroad to withdraw cash and having checked my Noddle and Clearscore files, there is no info on there that even denotes that I withdrew cash/anything adverse. It also hasn't affected my ability to gain several new lines of credit with other providers since.

A money transfer card you are not going to a cashpoint and withdrawing funds. You are transferring the funds to a bank account. Like I said, it's treated no differently to balance transfer cards. In my Noddle report, my money transfer card states Promotional rate: Yes.

jastanden

Candyapple wrote: »

Short version - yes.

Longer version - specific overseas cards e.g. Creation Everyday card, Halifax Clarity etc. where you would be encouraged to use it to withdraw cash and carries no such penalties, would not be viewed as you can't handle your money.

I can report having used the above 2 cards whilst abroad to withdraw cash and having checked my Noddle and Clearscore files, there is no info on there that even denotes that I withdrew cash/anything adverse. It also hasn't affected my ability to gain several new lines of credit with other providers since.

A money transfer card you are not going to a cashpoint and withdrawing funds. You are transferring the funds to a bank account. Like I said, it's treated no differently to balance transfer cards. In my Noddle report, my money transfer card states Promotional rate: Yes.

on the experian report at least (id assume noddle/clearscore would record them to but it does have a section on the cards for if a cash advance was done that month and for how much.

so i'm just thinking the clarity card is likely gonna put a cash advance mark against the report or not, then i guess its up to each lender to decide if they realise why it was done or not, ive messaged halifax to find out either way

Pay_me

I currently have a money transfer active on my barclaycard it does not show on any of my credit reports. All it shows is that the card has a balance there is no note to say cash advance, promotional rate etc etc.

I have also in the past done money transfers on my Tesco credit card again this has never been recorded on any of my credit files.