Balance Transfer Questions

Alex9384

Any balance transfer veterans here?

I'm not new to credit cards but I haven't done any balance transfer yet. My plan is to do it for the first time in 2023.

I've assigned a number to each question, so you can number your answer based on which question you are answering.

Question 1. How long does it usually take for the balance to be transferred from the date I initiated the BT? 1-2 working days or more?

Question 2. I know some providers asked me during CC applications if I also want to transfer a balance. If I say yes, can I do the BT during the application and can the BT be completed even before I receive the new physical card in the post? Or does it require my account/card to be activated first?

Question 3. Can I transfer a balance from 2 (or more) cards to just one new card? I think Halifax is offering me something like that, but not sure if all providers allow it.

Question 4. Are BT cards likely to come with higher credit limits than other cards from the same provider?

For example HSBC are now offering 33 months BT, but on their Reward CC they offered me a lousy 1900 limit. Is it likely that the same bank would offer me 2x more on their BT card? Of course my circumstances (particularly my CC debt) are changing constantly, which I think will play a big role.

Thanks!

Ebe_Scrooge

Alex9384 said:

Any balance transfer veterans here?

I'm not new to credit cards but I haven't done any balance transfer yet. My plan is to do it for the first time in 2023.

I've assigned a number to each question, so you can number your answer based on which question you are answering.

Question 1. How long does it usually take for the balance to be transferred from the date I initiated the BT? 1-2 working days or more?  Yes, usually pretty quickly, a couple of working days would be fairly typical (very often it's same-day).

Question 2. I know some providers asked me during CC applications if I also want to transfer a balance. If I say yes, can I do the BT during the application and can the BT be completed even before I receive the new physical card in the post? Or does it require my account/card to be activated first?  You can apply for a BT during the application process, this will usually be actioned within a day or 2 of the account being activated - no need to wait for the physical card to arrive.

Question 3. Can I transfer a balance from 2 (or more) cards to just one new card? I think Halifax is offering me something like that, but not sure if all providers allow it.  Yes - provided you have sufficient credit limit on the new card (you can usually transfer up to 95% of the credit limit).

Question 4. Are BT cards likely to come with higher credit limits than other cards from the same provider?  No.  Limits are determined based on your credit history - it makes no difference whether it's a BT card or an "ordinary" card.  Of course, different providers have different criteria, so one provider may offer you a higher limit than another.

For example HSBC are now offering 33 months BT, but on their Reward CC they offered me a lousy 1900 limit. Is it likely that the same bank would offer me 2x more on their BT card? Unlikely.  According to HSBCs criteria, that's the limit they've decided to give you. Of course my circumstances (particularly my CC debt) are changing constantly, which I think will play a big role.  A very valid point - you will be assessed based on your credit file at the time - if this changes, you may be offered a different limit.

Thanks!

My replies in bold above.  As always, be sure you have plans in place to clear the BT card once the promotional rate expires.  Otherwise any remaining balance will begin to attract interest at the card's standard APR, with no guarantee you'll be able to do another BT to somewhere else.

Alex9384

Thanks Ebe!
Btw, do you know if LBG allows BT between their banks? From Lloyds to Halifax or vice versa?

Ebe_Scrooge

Alex9384 said:

Thanks Ebe!
Btw, do you know if LBG allows BT between their banks? From Lloyds to Halifax or vice versa?

You'd have to check (I'm sure it's probably buried deep in the T&C's somewhere), but generally the answer is "no" - you can't BT between cards belonging to the same stable.

[Deleted User]

No they don't, if you look at the balance transfer offers they exclude Halifax, Lloyds and MBNA interbank ones. Those you'd need a money transfer offer instead

Alex9384

Deleted_User said:

No they don't, if you look at the balance transfer offers they exclude Halifax, Lloyds and MBNA interbank ones. Those you'd need a money transfer offer instead

I had a great money offer from Halifax, 24 months for 4% fee. That's 2% per year.

It was in December and I thought I will take it out in January, but in January it was reduced to 18 months and now to 12 months at 5% which is a pretty poor offer. My Lloyds card has just increased the MT offer from 12 to 18 months at 4%. I think I'll just wait a couple months and see if something better pops up from them.

[Deleted User]

They were doing 18 months BT for me on the Halifax one but went down to 15, was 18 again last time I looked (BT that is). 

martinbainbridge1975

I have a Lloyds card at the moment, the offers have just dropped off my account, having had MBNA cards 2/3 times they also do the same and put offers on your account for a a good few months. I found that sometimes they offer a money transfer at 3.9 apr with no fee its worth looking at depending how long you need funds for, it may work out cheaper than paying the 4/5% fee for the 0 per cent