Credit Card Balance Transfer Advice please

joseph3

Hi all,

I'm looking to purchase some furniture on my credit card at a value of £1475. My credit card has a limit of £2000 which has not been used yet. I have had this credit card for 4 years. So it has been in a healthy credit balance having spent from it and paying it back to its full balance.

So if I was to use this credit today for instance and pay the £1475 for the furniture meaning I would have used 75% of my credit card. At this point, could I then apply for a balance transfer credit card and take advantage of a 0% interest-free over however many months to pay off my HSBC credit card straight away and then pay back the new credit card over the 0% duration.

My question is, as soon as I spend from my HSBC credit card can I then apply for the new balance transfer credit card (Non purchase) straight away like 5 mins after, before there is a reflection on my credit file after spending on my HSBC card.

At this present moment, I have a good credit score 908 Experian, all bills and direct debits, no late payments etc.... but I have an overdraft facility in one of my bank current accounts which I have used 90% of. (£1250 out of a £1400) overdraft. Having checked my credit profile the only slight negative is the 90% usage and the positive is the HSBC credit card of £2000 which I have not used yet.

So I was wondering if my chances would be good if I applied for the balance transfer credit card literally after using my HSBC card. Will this work for me to take advantage of the balance transfer and likelihood of acceptance.

What is the likelihood of acceptance ? or will the new balance transfer company flag that my credit card has not been used because it takes a month for credit profiles to update the report. In other words, even though, I have spent on my credit card it will still show as not being used till the next update. Then again, if I was to apply for a balance transfer after the month I may be declined because I have then spent 50% of my credit card and 90% of overdraft facility in one of my bank accounts.

Other current bank accounts I have high positive funds. Also, I have no mortgage.

Just would like your thoughts on all this and what you think my best options are if any. Hopefully, i can apply for the balance transfer straight after the credit purchase.

I do have a stable income, though, I feel this is a convenient method for me at the moment as opposed to paying £1500 out of my pocket straight away when instead I can use my credit card for its intended use and then financially flex through monthly instalments to pay off 0% balance transfer which has paid back my credit card. All in all, creating a stronger credit profile in the end.

Your thoughts and advice on this please? thank you to all.

[Deleted User]

You can apply for a BT card before, during or after making the transaction.

The likelihood of acceptance will come down to a lender's assessment of your risk, not your credit score. Your OD usage will be a very limiting factor, which suggests no disposable income. If you can get this cleared, you will present a much better picture.

A simpler idea may be to get a 0% purchases card if you're able, rather than messing about with a BT. However again, the OD is a problem.

Willing2Learn

joseph3 wrote: »

At this present moment, I have a good credit score 908 Experian, all bills and direct debits, no late payments etc.... but I have an overdraft facility in one of my bank current accounts which I have used 90% of. (£1250 out of a £1400) overdraft. Having checked my credit profile the only slight negative is the 90% usage and the positive is the HSBC credit card of £2000 which I have not used yet.

Your overdraft is a concern and will look bad to lenders. Are you using your overdraft that much each month? It would indicate that you are living beyond your means. It could mean that you cannot get your desired card.


As far as BT cards are concerned. Have you tried any eligibility checkers?

joseph3

Deleted_User wrote: »

You can apply for a BT card before, during or after making the transaction.

The likelihood of acceptance will come down to a lender's assessment of your risk, not your credit score. Your OD usage will be a very limiting factor, which suggests no disposable income. If you can get this cleared, you will present a much better picture.

A simpler idea may be to get a 0% purchases card if you're able, rather than messing about with a BT. However again, the OD is a problem.

@zx81 Many thanks mate for your response, so in theory, you think it would be best to pay back my OD wait until that reflects positively on my credit profile, thereafter use my credit card or even apply for a high purchase credit card though, pay back the instalments of that new BT/Purchase card within the 0% interest period.

Again, thank you so much for your response.

joseph3

Willing2Learn wrote: »

Your overdraft is a concern and will look bad to lenders. Are you using your overdraft that much each month? It would indicate that you are living beyond your means. It could mean that you cannot get your desired card.


As far as BT cards are concerned. Have you tried any eligibility checkers?

@Willing2Learn thank you so much for your prompt response, regarding usage of the OD basically i just accumulated a bad habit of using it and paying it the last year but its been dormant in the -£1250 for around 7 months now, its still under a 0% interest OD 2 years after my graduation so in theory I was going to pay this back before the 0% OD period finished no charges or anything. Just the negative reflection of high overdraft usage on my credit profile.

I haven't tried that, I have seen some soft check companies for the balance transfer, even Experian do one. So would you recommend giving this ago ? in regards to what you said ''Living beyond my means'' do you then reckon and maybe if I did a soft check before I even use my HSBC card, there may be a chance of approval that may counter the ''Living beyond my means'' because I have a HSBC credit card with a £2000 balance which has not been used.

You know what I mean.

Many thanks again mate for your response, and I am appreciative for your advice and help.

Ben8282

In your place I would apply for a 0% purchases card to buy the furniture.
Using the overdraft is not good. You shay your other bank accounts have 'high positive balances' so repay the overdraft.

Nebulous2

You appear to be putting some thought into this, which is good, but don't tie yourself in knots. Overdrafts are often a concern for us here. They can be withdrawn any time, banks get twitchy if there is no throughput in the bank account, and they're often costly. Graduate free ones are a bit different though and lots of new graduates continue to use them in the free period.

We don't know some key information about you, such as income and financial plans, if you're planning anything big such as a car or mortgage.

I'd have a plan to reduce my overdraft, check the eligibility checker and go for a purchases card to buy the furniture. If following your original plan I'd apply for the new card first. I wouldn't want to make the purchase, be declined, then not be able to transfer. Balance transfer cards may have longer 0% periods than purchase ones, but usually carry a fee, which is why I'd go for purchases.