Barclaycard 25/25 Plan

Nidgey_laa

Hi Guys,

Just seeking some advice, which I'm sure ill get more than i did when i actually rang up yesterday to Barclays help line.

Basically I am looking at purchasing the Barclays Credit Card 25/25, 0% interest / 0% purchase for 25 months.

But just need to know in my own mind there terms and its right for me in my situation, so any advice or feedback would be fully appreciated.

I was thinking of transferring over my current Natwest credit card balance over of £1300 on the 0% for 25 months & chip away at it to save some money as currently i am only paying the min with Natwest.

But also pay for a holiday in October, but book it now on the BCC at 0% interest purchase rate.

Just to add more info to the complicated situation, i have work shares that i will be selling off in October, where i plan to use to knock a big chunk off the card.

Breakdown/Plan - Starting June.

Natwest Credit Card - £1300

---

> Barclays CC 25/25(Transfer)
(Credit limit =£4600)

Holiday/Engagement - £2200

---

> Barclays CC 25/25(Purchase)

Total on BCC = £3500 - So would the min payment be £77 @ 2.2%

Then Oct/Nov, will pay off large chunk through my shares - £2200 (Approx)

Leaving £915 left with 20months 0% interest, to chip away.


As i am not really familiar how all this works tbh, but is the above correct on how i am thinking this works or i am i missing something or not understanding anything ?

Any additional feedback would be appreciated - many thanks

Nidgey_laa

Hi Guys, any advice on my post

Candyapple

Your plan looks fine. However don't forget to factor in the £32.50 balance transfer fee (2.5%) and I think the min repayment for Barclaycard is 2.25% (well it is for mine).

Why would you want to pay £2.2k off so early into the deal? Surely it would be far better to say open a Nationwide Flex Direct current account and leave the £2.2k in there for a year earning around £120 in interest and once the year is up you can either move it to another bank/savings account and repeat the process until the time is up and then close to the end of the 25 months use those funds to clear the balance.

Unless of course you feel you would be tempted to spend the £2.2k if it was available to you, in which case then yes do as you have written in your plan.

Nidgey_laa

Candyapple wrote: »

Your plan looks fine. However don't forget to factor in the £32.50 balance transfer fee (2.5%) and I think the min repayment for Barclaycard is 2.25% (well it is for mine).

Why would you want to pay £2.2k off so early into the deal? Surely it would be far better to say open a Nationwide Flex Direct current account and leave the £2.2k in there for a year earning around £120 in interest and once the year is up you can either move it to another bank/savings account and repeat the process until the time is up and then close to the end of the 25 months use those funds to clear the balance.

Unless of course you feel you would be tempted to spend the £2.2k if it was available to you, in which case then yes do as you have written in your plan.

Many thanks for that feedback loving that idea bout the interest with another account etc...only thing is with my situation i am on a very tight budget month to month, so for me is getting the min payment down as quickly as possibly is key. But defo food for thought got me thinking that

Ye forgot about the transfer fee & your right its 2.25%
appreciate the reassurance & peace of mind :T

Is there anything else u think i need to look out for ?

Candyapple

Have you actually applied for/been approved for the Barclaycard yet? You would need your credit limit with them to be at least £4k to do the things you want to.

Do you have any other debts/loans/repayments etc?

What's your salary?

Have you had a look at the Virgin card?
http://uk.virginmoney.com/virgin/credit-cards/pre-apply/?product=dual-card

Although only 1 month less, it offers the same as the Barclaycard but you also have the option to do a money transfer as well.

Other benefits over the Barclaycard would be 1% BT fee (£13 vs £32.50) and also the minimum repayments are 1% with Virgin, so from June to Oct/Nov the min repayment would be £35 vs £78.75.

Virgin also give generous credit limits.

Nidgey_laa

Not yet applied only thinking of it hence the feedback, my credit score is pretty decent & my limit on my current Natwest credit card is 4k+.
Currently paying off a loan as well.
Salary is 22.5k.

I'll defo look into that Virgin Card as well :T

Candyapple

How much is your loan for and how long do you have left?

Any overdrafts?

Car payments?

Are you on the electoral roll?

Nidgey_laa

Loan - 10k - 3 years left - pay 268 pm
Overdraft 1700 set up - but rarely go into it.
No car payments.
yes on the roll.

Candyapple

Oh dear, you might not get the card as you could possibly fail on the affordability. £16k debt on a £22.5k salary, most lenders will be scant to lend any more for fear of you defaulting.

Before you apply, make sure you try the eligibility checker:
https://www.moneysavingexpert.com/eligibility/credit-cards/

Nidgey_laa

Ok mate but i did do a check and said i had 90% chance

Candyapple

Nidgey_laa wrote: »

Ok mate but i did do a check and said i had 90% chance

Don't forget that just because it says 90%, doesn't mean it's a guaranteed yes, there are numerous threads on here in the past where people have had similar percentages and went on to be declined.

Good luck, let us know how you get on and what card you eventually decided to go for