Balance Transfer

cheeky-virgin

If i do balance transfer , is that mean my account will be close with the previous lender.

Lets say i have [SIZE=-1]£[/SIZE]1000 in debts on barclay card and i want to transfer this balance on virgin so when i will do that my barclay account would be closed or would it be still active without paying any interest ?

is that left any bad effect on your credit history with previous lender.

GeorgeUK

If you have £1,000 debt with barclays and do a BT to virgin, your Barclays account will still be open, but have a balance of zero, so there will be no interest to pay.

In doing the BT with virgin though, you will need to pay about 3% of the amount transferred to virgin (and only 90%-95% of the credit limit is transferrable)

This will not leave anything negative on your credit history. As far as Barclays are concerned, you owed £1,000 and paid off the debt.
It is when you don't pay off a debt that the credit history is adversely affected

cm233lh

Yes, balance transfer is not really a good name for it. It's really a cash advance that they pay directly to your Barclaycard instead of giving you the cash. Barclaycard don't care where the money came from - they just use it to pay off your balance and leave you owing them nothing. Then you owe it to Virgin instead, but you still have your Barclaycard account.

If you're not going to use your Barclaycard anymore it's supposed to be good for your credit rating if you close the account.

HannaB

Hiya,

The posts above are correct. I did my first transfer in June when I applied for my Tesco CC. Tesco paid HSBC the outstanding amount, so the HSBC account was cleared. I then chose to cancel my HSBC CC so as to avoid any temptation. But I suppose you could keep your old card active if you want to.