Applying for multiple cards

swindiff

Just though I would post my experience on creating a stooze pot. I have applied for 8 cards this weekend, outcome as follows.

Clydesdale Bank 0% on purchases for 26 months. Application approved, limit unknown until I receive my card.

MBNA 40 Months 0% balance transfer, transfer fee 2.55%. Application approved, credit limit £10,000

Barclaycard 20 Months 0% balance transfer, no transfer fee. Application approved, credit limit £8,200

Bank of Scotland 39 months 0% balance transfer, transfer fee 2.95%. Application approved, credit limit £8,000

Halifax 39 months 0% balance transfer, transfer fee 2.48%. Application approved, credit limit £1,600

Tesco 40 months 0% balance transfer, transfer fee 2.69%. Application approved, credit limit unknown until I receive my card.

Virgin 40 months 0% balance transfer, transfer fee 2.49%. Awaiting to see if application is approved.

AA 22 months 0% balance transfer, no transfer fee. Awaiting to see if application is approved.

Existing cards that I already hold are:

Halifax Clarity, Balance £0, credit limit was £8450, I asked for it to be increased to £12,000 and they incresed it to £10,450

Virgin Card at 0% credit limit £7,000, balance £1,500

Lloyds Card at 0% credit limit £10,800, balance £4,000

YorkshireBoy

I'm struggling with your strategy here?...

1. You only have one fee free card (I suspect BOI will decline you, as they have myself and others on here who are heavily indebted). Those fees are going to hit your profit somewhat aren't they? I think with the recent increase in fee-free offers I'd have stuck with shorter duration fee-free cards.

2. When I had my last big push I went for Halifax, Sainsbury's, Santander, Tesco, & Lloyds...none of which had a BT fee. All were muled through my VA card. What's your route to the stooz pot?

3. Why the need for a very large limit on Clarity?

4. How come Virgin & Lloyds have such small balances with respect to their limits? Aren't they BT cards?

5. I thought Virgin limited you to one card at a time?

swindiff

The clarity card will be used to withdraw cash to my current account (can withdraw 50% of credit limit free of charge), with a larger limit I can do less withdraws (more convenient, as have to go into branch to authorize withdraw from CC to current account).

The zero fee Barclaycard will be used as the intermediary card. I obviously can't balance transfer from the Clarity card to the other Halifax card or the BOS card so it will have to go through the Barclaycard first.

The Virgin and Lloyds cards I have held for a while. I could balance transfer the remaining credit, but I would pay a similar transfer fee for around 18 months as I can get for 38-40 months with the other cards.

Even if I had to pay 3% on all balance transfers, I can earn between 3% and 5% per year. As most of these cards are at 0% for over 3 years there is a decent amount of profit to be had. I did think about the fee free balance transfer cards, but there are not as many to choose from and I would need to look at repeating the process again in around 18-20 months. Doing it this way I can set up my direct debits and forget about it for 3 years, bar the Barclaycard.

With any luck BOI won't see that I am heavily indebted "yet" which Is why I made all the applications at the same time.

YorkshireBoy

swindiff wrote: »

The clarity card will be used to withdraw cash to my current account (can withdraw 95% of credit limit free of charge), with a larger limit I can do less withdraws (more convenient, as have to go into branch to authorize withdraw from CC to current account).

Normally Halifax cards have a 50% cash limit. Presumably you have a special deal? Have you double checked with them?

The Virgin and Lloyds cards I have held for a while.

At only 1% minimums I'd have expected much larger balances unless you've had some limit increases granted outside the intro 0% BT period?

Even if I had to pay 3% on all balance transfers, I can earn between 3% and 5% per year. As most of these cards are at 0% for over 3 years there is a decent amount of profit to be had.

Possibly. I was hit with Sainsbury's (and now Barclaycard's) 2.25% minimums, which do eat into profit. Sadly I'm maxed out on the 3-5% accounts so have to be careful what I take these days.

swindiff

I phoned and checked with Halifax and the card I have I can transfer upto 95% of my credit limit into my current account.

The Virgin and Lloyds cards were never intended as stooze cards. The Virgin Card was used to buy my sons car and insurance. He needed about £3k, Virgin gave me a £7k limit. Have had the card about a year and he has paid half of the debt off.

I got the Lloyds card about 2 1/2 years ago when I was buying a house. I needed 8k to get to the 75% LTV mortgage rate. Was planning to get it paid off by the end of the 0% period so was paying more than the minimum, so thats down to £4k. Have now reduced that to the minimum payment and banking the remainder.

All the cards I have applied for are minimum payment of 1% except the Barclaycard and I only need to use that as an intermediary card anyway.

Lets say I get £30k and I pay 3% on all the balance transfers (it's actually less than that). Thats a fee of £900

In the 1st year I will have £13.5k at 5%, £15k at 4% and £1.5k at 3%. Thats £1320. So in the 1st year thats £420 profit

In the 2nd and 3rd year's I will have £6k at 5%, £15k at 4% and £9k at 3%. Thats £1170 per year.

So for 3 years thats a profit of £2760.

Most of these cards have 0% greater than 3 years, and this does not include cashback that I can get on a Santander account from my mortgage and utility bills.

In total the profit should easily exceed £3k over the 38-40 month duration.

YorkshireBoy

It's looking better now.


With such a long 0% period, and 1% minimums, I'd be looking to get as much of the 3% & 4% cash as possible into the 5% regular savers (should be able to get 6 between you...taking some £1,900 a month). You'll need to juggle a bit with the 3 Club accounts though, as you deplete funds for the reg savers.

swindiff

Not looked into the regular savers yet. So far have only opened 3xTSB and 3xNationwide. so all the 5% accounts

I have done a bit of a search and can't find anything that says you can only have one Virgin Credit card. That of course does not mean its not the case.

YorkshireBoy

Nationwide will take £1K per month (2 x £500). TSB will take £500 per month with the same split. Santander is 2 x £200.


Of course you may have to use Club Lloyds regular saver in the 2nd & 3rd years if still available.


Should end up with very little at 3% at any one time.

YorkshireBoy

Re Virgin, I seem to remember seeing it posted on the credit card board a couple of months ago? Apologies for worrying you if I've remembered incorrectly.

swindiff

No problem. The worst that can happen is they say no. Cheers, I'll look into the regular savers.

swindiff

Virgin gave me £9,900 so no problem having 2 cards with them. I found out that I actually still had a Tesco card open too which I had asked them to close months ago, even so they still gave me another card for £5,700

So to Recap

New Cards
Clydesdale £8,500
Tesco £5,700
MBNA £10,000
Bank of Scotland £8,000
Halifax £1,600
Barclaycard £8,200
Virgin £9,900
AA (Still awaiting decision)

Existing cards
Halifax £10,450
Virgin £7,000
Lloyds £10,800
Tesco £7,250

Total for new 0% credit £51,900
Total available credit £87,400

Thought this might be useful as a gauge to see what card providers limits are likely to be for others thinking of doing the same.