0% Interest Credit Cards - HELP

Victoria_Rustage

I'll cut to the chase, I currently have £4,000 on a credit card and at a recent meeting with my accounts manager she advised me to open a 0% credit card to pay it off as I'm paying quite abit of interest. The bank I'm with don't offer this service which means I'm having to look else where.

I'm doing my research and have found that I have a good chance of acceptance with Tesco 0% Balance Transfer card - no fee - 24 months. HOWEVER, on applying I noticed "Assumed Credit Limit £1,200". Does this mean they will only lend £1,200 or can I change this amount to cover my £4,000 debt?

I don't want to apply for the card if it doesn't cover the cost. Someone please help!

chris_m

You'll do better asking here;
http://forums.moneysavingexpert.com/forumdisplay.php?f=11

However, with regards to the credit limit, the card issuer (any issuer) will allocate a limit according to their interpretation of your creditworthiness and credit history.

EachPenny

You'd be better off asking this on the credit cards board, hopefully it will get moved there

Where credit card companies say things like "Assumed Credit Limit £1,200" they are doing so just to illustrate the cost of the card. The £1,200 isn't the limit you are likely to be given. Depending on your personal circumstances it could be more, or it could be less, assuming they accept you at all.

RG2015

The main MSE site has some excellent information (see the link below). Also, you can join the MSE credit club which gives you free access to your full Experian credit report and a eligibility checker for all types of credit card.

As regards the credit limit, there is no way of telling you much you will be offered before you apply. The £1,200 is just for illustrative purposes.

I recently a got Virgin Money 24 month card and got a much higher limit and have heard that they tend to offer higher amounts.

https://www.moneysavingexpert.com/borrowing/

Superscrooge

£1,200 is just a representative figure that most credit card providers use. You may be offered a larger or smaller credit limit depending on your personal circumstances.

If the eligibility checker shows you have a good chance of the Tesco 'No Fee' 0% BT card then I suggest you apply for it. If they don't offer you a large enough credit limit to shift your £4,000 balance, just shift what you can. There is no guarantee that any other lender would give you a larger credit limit than Tesco.

https://www.moneysavingexpert.com/eligibility/credit-cards/

chattychappy

Apply for the Tesco card (or another card the checker says you have a good chance). I would also apply for another 0% BT card at the same time, in case you don't get a good limit on Tesco. But whatever limit you get, it's worth transferring as much as you can.

My logic is that when you apply for the second card, only one search will be showing which won't be a problem. But if you get the Tesco card and apply for the second card later on, then the search will also show the Tesco card set up and more credit available to you - which might (or might not) reduce your chances of getting a second acceptance.

One further thing: some people find that having more credit available encourages them to spend more. So think again if this might apply to you. In the end, whatever interest you are paying, if you spend more as a result of getting more credit, you could be better off paying the interest!