Balance transfer Hokey Cokey

Alterastro

Hi all. I’m a bit useless when it comes to money so your advice will be gratefully received!
I had two credit cards (virgin and Capital One) with a balance of around £10k on each. Both were on standard interest. I applied for, and got another credit card with mbna with a 0% rate for 30 months. I transferred the balance from my virgin card, so that is now clear. Virgin have now offered me a 0% balance transfer rate for 12 months. It seems like a good idea to move the Capital One balance over, but a couple of questions… as I already have the Virgin card and available credit limit, would it be straightforward? Would virgin do a credit check? I’ve had a couple of credit checks lately so want to avoid if possible. And finally I’ve been thinking a consolidation loan might be a better option? Guaranteed to pay the debt off in a fixed time, at reduced monthly outgoings, although I know many are against consolidation loans.

WillPS

No, Virgin Money would not do a hard search as you would not be taking out a new credit facility.

Unless the transfer fee was punitive, if I were you I'd be doing 0% over 12 months, and throwing everything in to getting that debt as low as possible in that time before doing a consolidation plan.

You might even find you're eligible for another 0% balance transfer at that point if you keep your credit record as clean as you can.

cymruchris

Consolidation loans are rarely the best option, and there's nothing in what you've said that makes me think it's the best option for you.

They won't credit check.

Your aim is to minimise interest and charges using your available credit facilities. So with what you already have - if the transfer fee over the period of time offered means you save money - do it. Don't close your capital one account - keep it open and active - in that once it's clear - every couple of months put a single low value transaction through on it - and then pay it in full. There's a risk that if you don't use it at all - (or even if you do use it it can still happen) that the card provider will drop the limit or close the account.