A cautionary tale for Balance Transferers

DancingDragons

Hi all!
Like many we're trying to get to grips with the finances. We had planned on a BT and paying a set amount to clear our debt, especially as the cards we have keep upping our credit limit.

Following the MSE guide and preapply forms here I checked out if I could get the required amount from Sainsbury's with a 90% success rate I went ahead.
The application went through and was approved - but there was no email confirmation. Nothing to say that the BT was going to happen, and the approved credit limit only a 1/3 of the amount requested revealed AFTER the application was complete. Surely it should have been rejected if they wouldn't/couldn't do the Balance Transfer. It felt a little deceptive and misleading.
Its a bit like going into a shop buying a coat and only getting the hood!

I wouldn't have applied for a loan or a card that I didn't know wasn't going to provide me what I applied for, and now have damaged a good credit score thanks to Sainsbury's poor information. No big issue, but for some people it is. I rang once the application was approved only to be told they couldn't confirm anything and I had to wait for the forms to come through.
I don't intend to take out the card as I don't need more cards, I'd just like all my problems in one place

PLEASE BE CAREFUL when applying, make sure what you are applying for is what they are offering. I know if I was in a different situation I might well have taken the card and compounded the situation.

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[Deleted User]

You don't have a credit score, so no need to worry about that being damaged.

Financially, it would make sense to take what you have been offered and BT what you can.

bengalknights

I would transfer the 1/3 over to save the interest and possibly try and get another card for the rest

eskbanker

DancingDragons wrote: »

the approved credit limit only a 1/3 of the amount requested revealed AFTER the application was complete. Surely it should have been rejected if they wouldn't/couldn't do the Balance Transfer. It felt a little deceptive and misleading.
Its a bit like going into a shop buying a coat and only getting the hood!

I wouldn't have applied for a loan or a card that I didn't know wasn't going to provide me what I applied for

For future reference this is how they all work - after you've applied they work out how much credit they're prepared to offer and this is unrelated to the size of any balance transfer you have in mind, however the application may be worded.

DancingDragons

Thank you all for your comments.
I totally understand why its this way, but for many trying to get out from under it all its misleading - and dangerously so, leading them into more debt.

I managed in the end to get a BT at a rate that we can make a dent in. Hopefully, unless the goalposts move again!

molerat

Strange how they work. I decided to go for Halifax the other day and Tesco tonight as I already have on line banking with them both and they both only have a 1% min payment as opposed to the 2.25% with Sainsburys. Not thinking I would get the second from Tesco they both gave me more than I asked to BT even though my credit limits now total 2 x my annual income ! 2nd BT was to shift my slow stooze TSB 1% cashback card which is nearing its limit allowing me to start again for the next 13 months. (and I will be able to transfer anything I spend in the next 90 days)

PixelPound

So you would have preferred them to do the hard search for the application, approve you and then say sorry your BT amount is too high, we are not giving you a card. You credit file "damage" would have happened whether you got approved or not.

Sharon87

It can go the other way, I requested £1200, but I got £2000. However the card I applied for done a 'pre check' first and only offered me a balance transfer of 0% for less time than I asked for, I still applied and got more limit than I applied for.

If you need a large limit then transferring onto multiple cards may be the only option.

dresdendave

DancingDragons wrote: »

Thank you all for your comments.
I totally understand why its this way, but for many trying to get out from under it all its misleading - and dangerously so, leading them into more debt.

How would this put people in more debt? Surely transferring any part of your debt to a lower rate card is a step towards debt reduction.


Of course swapping balances from card to card is only tinkering at the edges of real debt reduction. The proper way to do it is slash outgoings and increase debt repayments. Plenty of advice on various MSE boards on how to do this.

molerat

Just logged into my Tesco banking and they have given me another £300 on top what they quoted when applying. I wonder how much I can spend on my cash back card to BT before the 90 days is up, £1800 going spare

Mush1988

Hi. I had a similar experience with Sainsbury's this week for the same thing.

What I'd like to know is, am I able to balance transfer to more than one card?

I only hold one credit card but the interest is ridiculous. £3k on it, been offered two balance transfers only £1k each. Am I able to take more than one? I've never done a balance transfer.

Thank you in advance.