One new credit card or two?

tom22bg

Hi,

I need some advice on what credit card to choose. I'm definitely not an expert at this.

I have a credit card with about £700 left to pay off, and its 0% rate is running out next month, so I will need to balance transfer. It's annoying because I think I could've paid it off in the next 2-3 months.

I also want a credit card that offers me a way to spread some of my spending later in the summer, as I am going on holiday and don't really have any money saved yet.

So I'm not sure whether to look for a decent card that allows me to spend and balance transfer to it, or to look for two separate ones.

(One additional option is just if I balance transfer the 700 and pay the minimum off each month, saving the extra money for my holiday, and therefore not needing the spending card.)

Thanks in advance,
Tom

[Deleted User]

If you can pay it off in a couple of months, is it really worth the cost of any BT fee you need to pay?

tom22bg

Well, I will have about 700 left to pay when the 0% rate runs out on the card (Barclaycard). So I could pay that off in 3 months, perhaps 2, after the rate runs out. But I just assumed that the interest would be a lot higher if I stayed on the card than a BT fee to a new card.

[Deleted User]

Unlikely, unless you can get a no fee BT.

What's your interest rate?

tom22bg

It's 19.7%

[Deleted User]

Assuming you pay it off in two months in two equal chunks, you'll pay around £15 interest.

Which means you would need a BT fee of around 2% or less to save money.

For a maximum saving of £15 and likely saving of nothing, I'm not sure I'd bother.

tom22bg

OK, very good to know. Thanks