Balance transfer advice

Logmar

Hi folks,
Looking for a bit of advice.
I have 2 CCs, both have around £6k on them. One doesn't get used for spending and the other does very occasionally for big things. The 2nd one has 0% on balance transfers until January 2019 and has space for me to transfer the balance from the 1st onto it.
I'm just wondering if it's advisable to do this or keep it as it is.
Any advice greatly appreciated.

[Deleted User]

Depends on how long you plan to take on repaying it, and the comparative fees and interest.

Kim_13

The following is a link to the MSE guide on the best balance transfers, which may help: https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards?_ga=2.72257875.1798824297.1513112874-1010848097.1513112873.

There are some fee free options in there, so if you're not due to apply for a mortgage or remortgage soon, it may be worth applying for a new card to secure a lower fee transfer and a longer 0% period. You could also transfer both balances to 0%, rather than just the one.

There's always the chance you could be declined, in which case you would need to ask yourself what the fee would be to use the 0% transfer option you have, what the current interest is and whether you'll make enough of a dent in the balance in just under a year to justify paying out the fee and going ahead.

What are the standard interest rates on both cards?

Dobbibill

It depends how much interest you will pay before you are able to pay it off versus how much is the fee for moving it to 0%.

If the fee works out as the most expensive then chip away, if not shift it over.

Logmar

It's like a 3% charge for the transfer.
I'd thought about doing the transfer and cancelling the card so I only have one in my name then when the interest free period runs out transferring to another card. I figure while I've still got 2 cards my chances of successfully applying for a 3rd (like Kim said) are lower, even though my credit rating is excellent.

Kim_13

It's more about the available credit you have vs your income, as opposed to the number of credit cards that you have. You are correct in the sense that lenders do have to assess any application as if it were new borrowing, rather than for a balance transfer.

3% seems high for something that won't even give you a full year on 0%.

If you're not looking to mortgage shortly, it's worth having a go to see if you are accepted for a better deal. You can use eligibility checkers before you go ahead to get an idea of which cards are most likely to accept you.