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0% balance transfer advice

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Hi,

I had recently applied for a 0% balance transfer credit card that uswitch said I was 95% likely to be accepted for. I was turned down. I'm just trying to figure out why. I have a large overdraft of £2800 that I use to the full every single month. Could this have prevented me from being accepted?

I have been loaned £2800 by a family member to help me pay off my overdraft thus eliminating my usage fee and interest. My plan was to switch to a 0% interest credit card and pay this off by £300 each month. Eliminating the interest on both my overdraft and credit card would save me over £1000 year alone just in interest and fees!

If i deposit the loan from a family membeer in to my current account, bringing my balance above £0 would I be in a better position to be accepted for one of these cards?

Any help vastly appreciated.

Thanks

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Possibly. .
  • Nasqueron
    Nasqueron Posts: 10,636 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Probably need to leave it for a month or so for the credit agencies to pick up the the OD is gone. Soon as it's paid in lower the OD limit

    You'll probably need a money transfer card not a BT one if you want to pay off the relative

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • Nebulous2
    Nebulous2 Posts: 5,666 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Are you saying you are carrying a credit card balance as well as the overdraft? Then affordability could be an issue. Maxing an overdraft regularly doesn't look good.

    Check everything you can to make sure your history is as solid as possible. No late payments, on the electoral roll, paying above minimum, not utilising all your available credit etc. Don't necessarily go for the best cards with the longest deals, they will be the hardest to get.

    The risk with moving debt is often that people keep the old lines of credit open for emergencies - find emergencies come very regularly and soon have used up their old credit limit as well. I'd second what Nasqueron said about reducing your OD limit. In fact I'd get rid of it altogether.
  • Hi,

    Thank you for all your replies, it's appreciated :)

    I have big balances on both my overdraft and credit card, yes. My plan is to cancel my overdraft completely once the funds hit my account and never ever open one up again! I wanted move to a 0% balance transfer card so that I could pay this off without having any interest on it and also without having the pay overdraft fees and the interest on that too!
  • Nasqueron
    Nasqueron Posts: 10,636 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    cantrill4 wrote: »
    Hi,

    Thank you for all your replies, it's appreciated :)

    I have big balances on both my overdraft and credit card, yes. My plan is to cancel my overdraft completely once the funds hit my account and never ever open one up again! I wanted move to a 0% balance transfer card so that I could pay this off without having any interest on it and also without having the pay overdraft fees and the interest on that too!

    You can't pay off an overdraft with a BT card, you need a money transfer card for that - you could clear the OD, close it down and then see if you can get a BT card for the other credit card and see if they do any money transfer offers (Barclaycard give me offers of both regularly)

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

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