Balance transfer - have I missed something?

Morbier

Today I applied (via MSE website) for an M&S card so I could transfer balance from another credit card and pay it off at 0% interest.

During the process, there were the usual questions about income, addresses etc etc but nothing about my current credit card and how much balance I wanted to transfer.

I've now had an email from M&S saying I've been successful and they will confirm in writing in a few days. No mention made of the balance transfer facility!

I feel as though I've just got myself another credit card for nothing.

Anyone else had this problem?

[Deleted User]

You wouldn't necessarily expect the email to mention it, as that's specific to your application, and you've received a generic acceptance email.

Morbier

Thank you zx81. I realise now it would be highly unlikely that the email would contain personal information.

Obviously, I was having a senior moment.:o

Craig1981

As they have three types (Shopping Plus, Reward Plus and Transfer Plus), are you sure you applied for the right one? easy mistake to be made

check paperwork when arrives or give them a ring to make sure you did in fact apply for the transfer one. once arrived and all correct, you have 90 days to complete the transfer

Morbier

Thanks Craig1981. I went through the whole process, starting on the 'transfer credit card balance' section on the MSE site. I think I had my brain switched off when I did it as I can't even remember the length of the 0% interest offer. I know it was twenty-something months and no fee.

Not like me at all. As you say, I will check the paperwork when it arrives and give them a call to clarify. I was just puzzled as to why no questions were asked about how much balance I wanted to transfer during the application process. I would have thought that had a bearing on whether or not I was given approval for the card. It's not a huge amount at all, but if I'd asked for £10k, say, on my income that might have changed things! (I would be very frightened myself if I had that amount of debt). :eek:

We shall see and I'll report back.

Anthorn

Morbier wrote: »

Today I applied (via MSE website) for an M&S card so I could transfer balance from another credit card and pay it off at 0% interest.

During the process, there were the usual questions about income, addresses etc etc but nothing about my current credit card and how much balance I wanted to transfer.

I've now had an email from M&S saying I've been successful and they will confirm in writing in a few days. No mention made of the balance transfer facility!

I feel as though I've just got myself another credit card for nothing.

Anyone else had this problem?

In generic terms, when they confirm in writing they should enclose a Pre-contract Credit Information which will detail the facilities on the card, the APR and minimum payment calculations. Probably also an agreement form for you to sign to accept the card and then the card will be issued.

Possibly most maddening about a new balance transfer card is not knowing the credit limit until you actually get the card issued and therefore not knowing if the balance you want to transfer is covered when you accept the card. That happens with Barclaycard and it's really annoying.

Morbier

Thanks Anthorn - the problem of not knowing whether the credit limit will cover the balance transfer has only just occurred to me.

Not sure what to do if it doesnt?!?!? Do I say 'no thanks' to the card and try another? I don't suppose several applications for credit cards would help either!

[Deleted User]

Accept the card and transfer what you can.

You can always apply for another card.

Morbier

Yes, I will. It's around £1500 so I hope to get an initial credit limit of somewhere near that, or am I being too hopeful?! I suppose it depends on my circumstances. I've no idea how they work it out. The only debt I've got is this credit card and have never been late paying it, or any other debt in the past. I'm retired with additional private pensions, so have a reliable income (i.e. not working and can't lose my job!).

I think this dilemma would be worth adding to the MSE guide on transferring credit card balances. I was naive enough to expect you would know what level of credit they would offer before committing yourself.

eskbanker

Morbier wrote: »

Yes, I will. It's around £1500 so I hope to get an initial credit limit of somewhere near that, or am I being too hopeful?! I suppose it depends on my circumstances. I've no idea how they work it out. The only debt I've got is this credit card and have never been late paying it, or any other debt in the past. I'm retired with additional private pensions, so have a reliable income (i.e. not working and can't lose my job!).

I think this dilemma would be worth adding to the MSE guide on transferring credit card balances. I was naive enough to expect you would know what level of credit they would offer before committing yourself.

To be fair, https://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards/ does explain in its FAQ section:

Q. Will credit scoring affect the deal I get and my credit limit?

A. When you apply for any credit card, it checks you to match you up against its wish list for what is a profitable customer (for full info on this and how to boost your chances, see our credit scoring guide). Yet this doesn't just dictate what products you'll be accepted for, but also how good the ones you actually get are.

[...]

Lower credit scores tend to mean you get a smaller credit limit. If this happens, don't automatically jump to get another card instead, at least use what they've given you. See the Credit Limit Too Low? guide.

Unfortunately there's no system that can predict card firms' attitudes to you for these variables. But, as a rule of thumb, the higher the chance the eligibility calculator gives you, the closer to the rep APR and higher credit limit you should get.

[...]

Q. What if the credit limit I get isn't high enough?

A. Move what you can, then if needed, simply apply for another provider's card and move the rest there. Don't leave the limit unused if it's cheaper to shift debt to it, as it's already on your credit file so you may as well use it.

Morbier

Doh.

Sorry folks, if I'd read the MSE article fully I needn't have bothered you all! Thanks for the help. I'll report back when I get details in the post.