Which 0% card to apply for

I want to start some modest stoozing to get the most out of my high interest current account, putting every day and some larger spending on card. With the accounts/cards I currently hold I'm not quite sure the best way to proceed.

I have a credit card with M&S for which the 0% purchase period is expiring in December with a £1000 limit. I have been paying this card off in full since I obtained it (younger me thought the only way to have a credit card and no debt was to pay off in full every month). I have now switched to paying off the minimum and am at 80% of my limit.

Should I apply for a long 0% card now (Virgin Money for example) and pay off the M&S card (and close?) in December, or apply for a balance transfer for that card?

I also have a £2k overdraft I don't use, and a Lloyds student credit card with £1k limit which I don't wish to use anymore, which I applied to trade in for a Platinum card. I was rejected for this as I eventually found out that you cannot trade in this type of card (the fact that I tried to do this was based on the terrible knowledge of their own advisors). In their letter they stated I am welcome to apply separately for a Platinum card rather than trade in.

Should I apply for a Lloyd's credit card instead of one of the longer 0% cards with another provider, what would be a reasonable limit to ask for? Would closing the student credit card have a negative effect on my credit history?

(For context I have a full-time decent paid job with relatively low outgoings on rent/bills etc. and according to Noddle, Clearscore and MSE Credit Club have a pretty strong credit history for my age.)

Comments

  • eskbanker
    eskbanker Posts: 29,765
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    aerie wrote: »
    what would be a reasonable limit to ask for?
    Just to clear up this misconception, credit limits will be set unilaterally by the card company based on their risk scoring algorithms, etc, so you don't get to request a specific limit yourself (or rather, you can, but they'd ignore it!).

    Try the MSE eligibility calculator to assess your chances of the various cards....
  • I think you will get different answers from different people on here. In my opinion you should remove the £2K overdraft and the Lloyds student card since you don't use them and is just credit available to you, therefore seen negatively.

    On the other hand, closing the Lloyds student card may reduce your account stability on your credit report since it's probably the card you have had for the longest amount of time.

    You could find a no fee 0% interest balance transfer card and transfer the M&S Bank balance to that one, or pay off the full balance of the M&S card and apply for the longest 0% interest on purchases card you can. This way you'll pay no fee whatsoever. You can then stooze. I personally see no value in closing the M&S Bank card.

    What do the results on MSE's eligibility calculators say for 0% deals?
  • Dobbibill
    Dobbibill Posts: 4,132
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    The eligibility checker is a good start - or with somewhere that you have an existing relationship. If Lloyds have invited you to apply at least you know you can get a card, albeit not a known credit limit prior to application.

    You will get different responses from different providers with regards to the credit limit on any cards you are accepted for - it will be their decision based on risk assessment. No-one on here will be able to tell you in advance.
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.

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  • aerie
    aerie Posts: 15 Forumite
    Thank you for the replies.

    I've tried the MSE eligibility checker, it showed 50% chance for the Sainsbury's and AA cards (which is too low for me to want to try), 100% for Virgin money, though this is 0% for 1 month less than the longest Lloyds card.

    I'll get rid of my overdraft straight away to reduce my available credit - how long will this take to show to lenders? If I apply to Lloyds I'm guessing straight away, but Virgin?

    With regards to the credit limit I'm not too familiar with this in the application process. If they ask you how much credit you are after and you give them a low ball amount, will they offer you more if they are willing based on your risk? Is there any harm in asking for a high amount (even if they then offer you less)?
  • aerie wrote: »


    With regards to the credit limit I'm not too familiar with this in the application process. If they ask you how much credit you are after and you give them a low ball amount, will they offer you more if they are willing based on your risk? Is there any harm in asking for a high amount (even if they then offer you less)?

    As already pointed out, you don't get a say in it.
  • aerie wrote: »
    Thank you for the replies.

    I've tried the MSE eligibility checker, it showed 50% chance for the Sainsbury's and AA cards (which is too low for me to want to try), 100% for Virgin money, though this is 0% for 1 month less than the longest Lloyds card.

    I'll get rid of my overdraft straight away to reduce my available credit - how long will this take to show to lenders? If I apply to Lloyds I'm guessing straight away, but Virgin?

    With regards to the credit limit I'm not too familiar with this in the application process. If they ask you how much credit you are after and you give them a low ball amount, will they offer you more if they are willing based on your risk? Is there any harm in asking for a high amount (even if they then offer you less)?

    Please could you use Virgin Money's own eligibility checker on their website just to get a second opinion?

    It will take some time for the removal of the overdraft to be reported. It takes time for Lloyds to report it to the credit reference agencies and then for the CRAs to then update your report.

    You don't get a say in the credit limit.
  • Dobbibill
    Dobbibill Posts: 4,132
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    You will get 1 of 3 responses from them.

    - You have been accepted - £xx is your credit limit.
    - You have been declined - sorry etc.
    - Your application has been referred we will be in touch - you may be accepted after a few days wait/you may be declined.

    Apply for the Virgin card - see what response you get, followed by a quick application for Lloyds.
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.

    If you can't be the best -
    Just be better than you were yesterday.
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