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Pls advise - need 0% Balance Transfer Credit Card...

I think I need a '0% Balance Transfer' Credit Card - the type where you transfer some or all of your credit card debt to another card for 0% for a set number of months (mustn't miss a payment or get charged lots of interest) - and I have filled in the Credit Card Eligibility Calculator on this site and have two cards saying 100% eligibility.  The only problem that I can  see (I am a homeowner with no mortgage or dependents) is that due to CFS and long Cv'd I have fallen into the bad habit of paying off  part of my credit card every two months - not every month as everything seemed too large a struggle.

Question - A) have I chosen the right card (0% Balance Transfer) to apply for, as if I don't have to pay interest I could get rid of my cc bill in a year with hard work, B) should I be brave and go for it even if things go pear-shaped?  (I tried to check my credit score on this site but I had forgotten the answer to a question, and the computer said it would phone me with a code and the phone still hasn't rung over an hour later).


Comments

  • grumbler
    grumbler Posts: 58,629 Forumite
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    edited 14 December 2022 at 6:51PM
    A) Yes
    В) What do you mean by "even if things go pear-shaped"?  The worst that can happen is that you aren't accepted.



  • PrudentEllie
    PrudentEllie Posts: 40 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    edited 14 December 2022 at 7:16PM
    Thanks grumbler.  By pear-shaped I suppose I mean if they look at me paying off twice as much every two months instead of the right amount every month, and then decide they don't like that and I'm not accepted.  (Because of being so ill I haven't made the right decisions for a while and it was being so ill that got me into debt).  I was worried that it would affect my credit score if I was not accepted... would it?  If not, I will apply this minute....
  • grumbler
    grumbler Posts: 58,629 Forumite
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    Do you mean you miss a minimum payment once every two months? If so, this is really bad and 100% eligibility is questionable IMO.
  • PrudentEllie
    PrudentEllie Posts: 40 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    edited 14 December 2022 at 7:22PM
    No, I don't miss any payment, I have a minimum payment set up, what I miss (every other month) is taking more off the debt, but then the next month I have paid twice as much - sorry, that wasn't clear.
  • grumbler
    grumbler Posts: 58,629 Forumite
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    This is fine, although it's believed that it's better to make payments just a fraction more than the minimum required.
    And you have nothing to lose. They either accept you or not. And one credit search in your history doesn't mean much.
  • Thanks so much grumbler - am now off to apply!
  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Photogenic
    Hi,

    Yes, a 0% balance transfer card is what you are considering.

    However, the first thing I would suggest is that you get hold of your free credit reports online from Equifax, Experian and TransUnion. Or even Clearscore or Credit Karma. They will tell you your credit score and they'll give a credit history for you. (BUT your credit score isn't seen by anyone else so even if you know what it is, it won't be helpful.) Do ensure that you check that all the information on each report is correct. The fact that you haven't been able to make a payment to your credit card each month - whether to clear the balance or not - could very well be a negative factor. But you do need to check your reports.

    Once you've seen what state your reports are in, and if you think they look okay, the next thing to do is to go to the individual websites of the two cards you have seen and do the eligibility questionnaires there - because they give you a better idea of whether or not you will be accepted for their particular card than the general eligibility quiz on here.

    If you do apply and are rejected, unfortunately that'll be another negative factor on your credit reports.

    But - first thing to do - check those reports and then you won't be acting 'blind' - that is, without the information on your reports.

    And if you do decide not to apply, or if you are rejected then you could do much worse than ask your current credit card company for help. Just phone and tell them that you are having temporary financial difficulties, are they willing to help in some way? It's worth asking, even if they say no. Sometimes they do say yes.

    Good luck.
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • fergie_
    fergie_ Posts: 218 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    I'd just add that not all 0% transfer cards are equal. They can offer different limits, different time lengths and also different charges (from free to 5%) for transferring a balance.

    Some of the providers will also let you 'soft apply' without affecting your credit record. This is where you enter all your details and they tell you what terms they are 99% sure they will offer you before you accept (which will then mark your file).

    This is useful if you need a particular limit or not sure what deal to go for. The main factors though are length of deal, cost and credit limit (remember most cards will only let you transfer 90% to 95% of the actual credit limit).

    Hopefully not an issue for you, but the final factor people sometimes consider is the minimum monthly repayment amount, which can vary from 1% to 5%.
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