Balance transfer for £12k

livewire82

I currently have 2 credit cards:
Card #1
Balance: £10,748
Interest Rate: 1.527%
Card #2
Balance £890
Interest Rate: 0.482%
I am having to make minimum repayments on both because I simply can't afford to pay any more off at the moment. Whilst I'm paying off around £175 per month, I'm being charged around £40 per month so i'm just burning money I don't have.
I need some recommendations please on the best option for a balance transfer that will have a low transfer fee and a long period on 0%. 
I understand applications are all dependent on a personal situation and I will inevitably been illegible for some but I just need to starting point.

livewire82

Just to add, so far, the best option I have found is with Sainsburys who are offering 26 months on 0% with a 3% fee for balance transfers. The only drawback is I have a 50% chance of being accepted. Should I go for it or are there better options out there?

[Deleted User]

I'd go for something which has a better chance of acceptance, even if the offer isn't as good.

You're likely to struggle to get the best offers and even if you only shift some of the debt to a lower rate for a few months, it will make a big difference.

floppydisk1

Does that Sainsburys indicated what sort of credit limit are you likely to get  ( on lenders web sites, some lenders will tell you likelihood of acceptance as well as your  % and likely credit limit -  £ 1200 for illustration purposes is of no use as that is a standard example ) ? I am not entirely  sure 0%  BT card will be of any use to you - in today's economic climate you will only be offered anywhere close to 12 K limit if y you credit history and affordability is well above average( in which case you'd probably paid off a lot more and would not be struggling  with 175 per month in repayments ) . While you might get a BT card offer , it will most likely be nowhere near the amount you want or aim for. Have you considered taking up a loan ? Any mainstream loan  % charge is a lot more favourable to credit card % once the 0% period is  up. I am suggesting that - as you might get a credit card offer, it might be with 3 - 5 k at best and will leave you with nowhere near high  enough  limit to cover your existing debt and with new hard search and  new account added  to your credit file ,it will be even harder to get another decent deal few months later.... As far as I know ( might be wrong though ) I think it's easier to get a 10k loan fixed term and standing order in place than a revolving credit ( which essentially any and every credit card is ) for the same amount.

livewire82

A loan isn't an option as I've been declined not too long ago.
The only cards I seem to be eligible for are Aqua, Fluid and Marbles which all charge a £300-£400 transfer fee and their interest free period only lasts for 6-9 months. If I'm going to pay £300 every 6 months, I might as well just carry on paying off the interest on the cards I have!

funkycredit

livewire82 said:

Just to add, so far, the best option I have found is with Sainsburys who are offering 26 months on 0% with a 3% fee for balance transfers. The only drawback is I have a 50% chance of being accepted. Should I go for it or are there better options out there?

I had 0% chance with Sainsbury and applied anyway (as my credit FILE is good), and it was referred (which I expected) and the underwriter called me to check my salary and then approved a £12k limit with the lowest rates. 

So I'd say ignore the calculator results if your credit file looks ok and not too many searches etc. 

Based on the cards you're likely to get, these are not mainstream cards so it suggests your credit file might be bare / high usage of credit utilisation? Plus of course you'll never get anything like £12k starring limit with those companies. Likely to be a grand tops. 

floppydisk1

having been declined a loan, and only available new credit cards of the mickey mouse  kind, I'd say ( taking into consideration 300-400 fee and new hard search + new account added to already growing file ) you'd be better off for next few months to pay off as much as you possibly can on your existing card ( with the benefit of credit utilisation  going down, credit history  adding up, and hard searches being few months in past )  as the more  hard searches  get added on your file, the harder it will get to be accepted for any decent credit  ( be it loan, credit card or even overdraft )

MinuteNoodles

You're likely to fail on affordability for anything with a reasonable rate if you're struggling to find £175 a month to repay. Even at 0% on the longest term card you can find the minimum monthly repayments set in law of 1% on £12,000 would be £120 a month falling to £110 a month by month 12, just £55-£65 less than you're struggling like hell to afford. It wouldn't take much to completely shaft you. Even the kids needing a new pair of shoes would completely stuff you let alone something like a fridge or cooker going wrong or the car needing a repair.

You are in debt crisis. You need to be posting on the debt free wannabe board and considering contacting a debt charity, not digging yourself a deeper hole by getting a balance transfer card because with your finances so perilously tight I guarantee you'll reuse that freed up balance on the two cards you currently have and be even deeper in trouble.

CMP927

Hi,
I have done a money transfer from my Virgin Credit card for 12K. The interest free period is for 6months. Can I get a balance transfer card to pay this off over a longer period?
My wife applied for a Santander card to do this but was turned down. We both have very good credit ratings.

[Deleted User]

Yes, if you can get accepted.  Your very good credit ratings aren't a factor in lending, but your history and earning are, so try an eligibility checker before you apply.  Your existing debt will impact your affordability.

Malkytheheed

We are going to (and are starting to) see a TIDE of people who usually just move from debt from 0% card to 0% card via balance transfer who now find that door well and truly shut due to covid. Hate to say it but lenders aren't playing that game anymore and people are going to really end up paying the price for carrying a balance. 0% or not.