Balance transfer credit card

jdsimmons3

Hi everyone. I have £300 on a credit card which I'm now paying interest on. 

Once we have completed on our house I want to pay this off and get a new no interest credit card.

I'm a bit confused how this works!

Do I just apply for one say a 24mnths interest free. Then transfer £300 from my new credit card to pay off the other one and then close the old credit card account?

I've seen some have some sort of fee which I don't understand but maybe I'm just being thick! Any advice appreciated. The card I have with £300 was my first credit card.

[Deleted User]

You apply for a card and carry out the BT via that card. There may be a fee to pay, which the card will specify.

But if you only have the one card and see struggling to clear £300, your chances of getting a decent offer are low. Try an eligibility checker first.

If you are successful, don't close the first card.

In the meantime, drop by the DFW boards for advice on getting the debt cleared more quickly.

PIPL

Hi - I'm no expert, but in my experience pretty much all cards will charge a balance transfer fee, a %age of the amount being transferred to their card. (I guess they have to make a little somehow, since the intention is you'll have it paid off before interest kicks in.) The thing is if you're intending taking advantage of the full interest free period, taking this hit of balance transfer fee will still cost considerably less than if you were to incur interest by sticking with your current card, provided you are able to clear the full debt within the interest free period
. 

jdsimmons3

Thanks everyone. I don't understand how credit card works to be honest! I was told to get one to boost credit score. Paid for our sofas on it and have been paying it back since (more than the minimum each month) I could pay this off pay day but I thought doing it slowly month by month is what builds my credit score? Would I best to just pay it off in full and just get another credit card with no interest?

[Deleted User]

Your credit score is fictional and can be ignored.

Paying back a small debt slowly, especially interest bearing, tells lenders you're living beyond your means and have no disposable income.  £300 isn't worth stoozing for the interest, so get it paid off.

In future, pay your credit card(s) off in full each month.