Credit Transfer confusion :-(

Lightattheend

I've just applied for a Capitalone card, completed all the paperwork including that I wanted to transfer £788 from my Aqua credit card, got approved but they've given me a limit of £500 so I'm really confused! Does this mean on top of the transfer or will they only transfer £500? I think it is the latter, they will only take across £500 which defeats getting the Capitalone card! I don't want 2 credit cards so I'm stumped as to what to do now

Can anyone advise? TIA

bengalknights

Your transfer will most likely be for £400 and then you might get charged for the rest and lose the promotion.

Lightattheend

That's a pain, there was nothing to indicate that in the application form and the office is closed until Monday. The only slightly good news is that the interest on the CapitalOne card is 1% lower than on the Aqua card!

molerat

Why get another card then ? Was the BT fee free ? Seems a lot of effort for a 1% interest difference on only £788. If you are carrying a balance then 2 cards is a good option, one to spend on and clear in full each month whilst paying down the other one. Best option of course is to get a fee free 0% BT card.

YorkshireBoy

Lightattheend wrote: »

The only slightly good news is that the interest on the CapitalOne card is 1% lower than on the Aqua card!

That reads as either it wasn't a 0% BT deal or you were planning to put purchases on there after the BT? If the latter, then reconsider...unless there's 0% on both for the same duration?

You're usually limited to 95% (or 90% in some cases) of the credit limit for the BT, so you're looking at £450 to £475.

SHill

You cannot guarantee what the credit card company will issue you as a credit limit.
Why are you applying for Capital one card?
Did you review credit card eligibility checker?
Have you checked your credit history and understand what you can do to improve your credit worthiness?

Lightattheend

To answer your questions:

• I did check my eligability and I have checked my credit history
• It is a 0% balance transfer
• I don't want to buy anything, I want a way to pay it off quicker

I will manage with what ever happens but just seems like a bit of daft situation - I have always believed balance transfers were for the whole amount though this is the first time I've had one. I may well cancel the CapitalOne card as I can't see the benefit any more.

YorkshireBoy

Lightattheend wrote: »

I will manage with what ever happens but just seems like a bit of daft situation - I have always believed balance transfers were for the whole amount though this is the first time I've had one. I may well cancel the CapitalOne card as I can't see the benefit any more.

The benefit is:

£142/yr

Do you see it now?

£475 of your debt will be interest free. Assuming Aqua is 29.9% APR that's £142 extra off your debt over the next 12 months.


* Disclaimer: Rough figures, to make the point!

Lightattheend

Thanks YB, I can see that positive - think I was disheartened by the comment about losing the promotion. I haven't had any form of credit for years but applied for the Aqua one for 'emergencies' and having recently moved I found I needed to use it more than I had hoped (especially after being let down by a removal company). I just want to get it back down again, which I will.

YorkshireBoy

Lightattheend wrote: »

I can see that positive - think I was disheartened by the comment about losing the promotion.

I didn't understand that comment to be honest. Maybe they'll come back and clarify what they meant.

Lightattheend

Thanks again YB. I think I will just wait and see what happens, I've already set up a DD for paying the Capital card and added it to my accounts spreadsheet so I'm all set