Best Way to Swap Credit Cards Advice Please

Earthwrm

Hi Everybody,

Hopefully one of you knowledgeable money-savers will be able to help me out here:

I have a Halifax credit card which I have had for years (literally coming up on 20 years now) and although the interest is rubbish this hasn't bothered me as I always pay it off in full each month.

My income/debt ratio is pretty high as I have an unsecured loan as well but it can't be maxed out as Halifax just upped my credit limit to £5500 without me asking, although I cannot really use this as the monthly payments would be silly due to the extortionate interest I would be paying if I did.

I would like to swap it for a new card with better/0% interest to be able to use the credit more effectively but what would be the best way to do this? Since there is no outstanding balance then a balance transfer isn't an option, and since my income/debt ratio is quite high I guess I couldn't apply for a new one before closing the old one.

This makes me think that I should close the old one, then apply for a new one, maybe with a wait in between. Or is there a better way to go about this? Is it even foolish to expect £5000 of credit on a new card, even though I have it available on my old one right now? Apologies if this is a stupid question, but this will be the first time I have ever changed my card and don't want to mess it up.

Thanks in advance, I look forward to your advice!

Dobbibill

If you pay off your card in full and don't use for cash there will be no interest.
Are you planning on spending a large amount?
A 0% purchases offer may be more suitable if you are, and want to spread the cost.


Halifax allow you to swap cards https://www.halifax.co.uk/creditcards/existing-customers/swapping-your-credit-card/


That may be an option if it's suitable to your needs.

Earthwrm

Hi Dobbibill,

Thanks for the advice! Yes, I am planning to make a larger purchase but not for a few months yet. I just thought I should get my act together sooner rather than later.

I didn't know that about the Halifax card swap - that could be very useful. Would it matter that Halifax don't show up on my Credit Club card eligibility list? Barclaycard is at the top with a 90% chance. But then again I have been with Halifax for years, if that helps and it works like that.

Halifax is offering up to 20 months 0% on purchases, if they'd offer that to me, whereas Barclaycard is up to 27 months so it's not that different if one would be a better choice than another.

No worries if your advice doesn't stretch that far, I'm very grateful for you pointing me in this direction. Thanks!

Dobbibill

As you are already with Halifax, it may be worthwhile giving them a ring before you do any applications and leave a footprint on your credit file - they may be able to advise whether you can apply for the swap.

Credit club just gives an indication based on the information they have - they are not privvy to the relationship status you have built with Halifax so whilst it's a guideline, I wouldn't take the results as gospel - some other posters have had opposite results to those shown on credit club.

Earthwrm

That sounds like a plan. I'll take Halifax as my Plan A for now then and see what they say.

Thanks Dobbibill, I've been fretting about this for a while and you have shown me a path. You are awesome!