New to this - 1st 0% card - what to do!

JoeHel

I've only recently discovered this amazing site and got my terrible finances in hand. I've applied for, and got, my first 0% credit card with Abbey National. 0% on transfers for a year (I won't be using it to purchase anything!)

My worst card at the moment is Barclaycard - 22.9% on purchases and 27.9% on cash advances :eek:

But I also have other cards with rates above 15%. What I'm thinking of doing is phoning Barclaycard and saying I'm going to transfer the entire balance unless they reduce my rate so they're no longer the highest. Then ringing the next, then the next... (4 cards in total). I'll then transfer what ends up being the highest, but hopefully will have also reduced the rates on the other three. Is this the best way to do it? It seems logical to me but I don't know how these companies work and they might just tell me to forget it?

Also, once I've transferred the balance, does anyone have experience of then approaching the card that you have cleared and asking for a preferential rate to transfer the balances of other cards back to theirs?!

cm233lh

sounds good, but remember, you'll get charged for every balance transfer, so the priority is to reduct the rate on your cards without moving the balance. I think the best approach is to call and ask to close the account, rather than threatening a balance transfer. You can do that whether you have a zero balance or not. If you can't reach an agreement they'll say the account will be closed as soon as you clear the balance. Then, and only then, you go and do the BT. No sense in paying 3% to move your money away and then another 3% to move it back.

on-the-count-of-three

JoeHel wrote: »

Also, once I've transferred the balance, does anyone have experience of then approaching the card that you have cleared and asking for a preferential rate to transfer the balances of other cards back to theirs?!

Rather than do this, have you thought about getting another card at 0% to get the rest of the balance, or at least another part of it transferred?

I was turned down for the first card I applied for, & this is where I usually give up. This time though I went here.

http://www.moneysupermarket.com/cards/credit_card.asp

If you fill in your details it will give you a list of cards you are likely to be accepted for. The more cards you apply for, the less chance you have of getting another, so I applied one at a time.

I applied for a card for balance transfer..& got it.
I then applied for another 0% balance transfer card..& got it.
I then applied for a 0% 12 months purchase card...& got it.
I then applied for a card to use abroad without the overseas surcharge..& got it

(I then tried the Abbey cashback card, but now realize they are very slow in processing whether successful or not, so the time for cashback will have probably run out even if i do get it..so I'd give this one a miss..but I don't mind, I have what I need now.)

Another tip..when you have done the balance transfer just pay the minimum monthly payment..a direct debit here would be good.

Then open a savings account for the rest.

Example..balance transfer £1500.
to pay off in 12 months = £1500 /12= £125

Minimum monthly payment though, say at 3% = £45

So you pay £45 a month to the card & put (£125 -45) £80 a month into a savings account to earn interest. You will then be able to pay it off in a lump sum just before the 12 months is up & have earned some extra interest along the way.

JoeHel

Thanks for your replies. I will think about how I approach the other 3 credit cards.

I will check out that site and hopefully be able to get a couple more 0% cards. Until I do that I can't really put the extra into savings as the other 3 cards still have quite high interest rates and I need to pay as much as possible on those ones.

Moggles_2

Originally Posted by sparky1664
I was turned down for the first card I applied for & this is where I usually give up. This time though I went here.

http://www.moneysupermarket.com/cards/credit_card.asp

If you fill in your details, it will give you a list of cards you are likely to be accepted for. The more cards you apply for, the less chance you have of getting another, so I applied one at a time.

I believe it's important to point out that, unlike MoneySavingExpert, Moneysupermarket is a profit-driven service that lists some, but not all best buys, due to its commercial relationships.

You can get unbiased credit card suggestions here on MSE, if you click on Martin's *Best Balance Transfers* article.

For a comprehensive list of 0% balance transfers cards, updated regularly and not influenced by advertising commissions, see also: http://www.stoozing.com/0fees.htm which is sponsored by MoneySavingExpert

Congratulations on a good start. 'Hope Abbey give you a nice, big credit limit

:beer:

YorkshireBoy

sparky1664 wrote: »

If you fill in your details it will give you a list of cards you are likely to be accepted for.

Since you're not asked for either income or existing debt details, how on earth can they say which cards you are "likely to be accepted for"?

on-the-count-of-three

I believe it's important to point out that, unlike MoneySavingExpert, Moneysupermarket is a profit-driven service that lists some, but not all best buys, due to its commercial relationships.

You can get unbiased credit card suggestions here on MSE, if you click on Martin's *Best Balance Transfers* article.

For a comprehensive list of 0% balance transfers cards, updated regularly and not influenced by advertising commissions, see also: http://www.stoozing.com/0fees.htm which is sponsored by MoneySavingExpert

I clicked through to moneysupermarket from a sponsored link in Martins best balance transfer article & they did indeed give me a wider range of cards than I had found on this site. I agree, I always come to this site first & work from there as I wouldn't trust a site that I had stumbled across using google for example.

YorkshireBoy wrote: »

Since you're not asked for either income or existing debt details, how on earth can they say which cards you are "likely to be accepted for"?

Sorry..I was only passing on what worked for me. I was indeed accepted for all the cards I applied for in this way after being turned down for the top card recommended on MoneySavingExpert

Perhaps I had better not reply from my own personal experiences in the future & instead leave everything to the experts. I was after all, only trying to help.

YorkshireBoy

sparky1664 wrote: »

Sorry..I was only passing on what worked for me. I was indeed accepted for all the cards I applied for in this way after being turned down for the top card recommended on MoneySavingExpert

Perhaps I had better not reply from my own personal experiences in the future & instead leave everything to the experts. I was after all, only trying to help.

Don't be so sensitive!

You mis-read my post. I was not 'knocking' what you had posted (you had been told/read), but what the site claimed.

Since one of the key criteria in credit scoring is 'ability to pay', in my opinion the site is making a false claim. Don't forget they're on 'lead commission'!

JoeHel

Thanks very much. I will look into what other deals are going in a couple of months I think. I have just received my Abbey card with the exact limit I'd requested - £8,400 - so I can transfer the entire balance of the Barclaycard onto it :j I'm paying 22.9% AND 27.9% on that card (stupid idiot me got some cash advances on it) so that will hopefully make a massive different to my snowball!