Pay off existing card or take out new one with 0% interest

cmbrookes

Hi all 

I currently have a credit card with 0% interest which runs out next May. I am paying this off and plan to pay it off by the time the 0% interest ends. NatWest have offered me a credit card on 0% purchases and balance transfers for 23 months. I’m wondering what the best thing would be to do in terms of pay off the current credit card or take out the NatWest one with lesser monthly payments over an extended period.

WYSPECIAL

Is there a reason to extend the time to pay off the 0% balance currently expiring in May?

Might be better to take advantage of the 0% purchases for 23 months and save the money you spend on it in the highest interest paying accounts available.

cmbrookes

WYSPECIAL said:

Is there a reason to extend the time to pay off the 0% balance currently expiring in May?

Might be better to take advantage of the 0% purchases for 23 months and save the money you spend on it in the highest interest paying accounts available.

Hi. I was thinking this myself but it means me opening another credit account with in 6 months which will be a negative on my credit report.

MorningcoffeeIV

It wouldn't be a negative unless you have a particularly poor credit history. In which case you won't be getting 0% deals.

cmbrookes

MorningcoffeeIV said:

It wouldn't be a negative unless you have a particularly poor credit history. In which case you won't be getting 0% deals.

My credit history is brilliant but a lot of the credit agencies recommend not to open too many credit accounts with in 6 months as it shows you're desperate for credit.

lr1277

What fee are Nat West charging for the balance transfer?

Assuming there is a fee, only you can decide if the lower payment over the longer term outweigh the fee.

MorningcoffeeIV

cmbrookes said:

MorningcoffeeIV said:

It wouldn't be a negative unless you have a particularly poor credit history. In which case you won't be getting 0% deals.

My credit history is brilliant but a lot of the credit agencies recommend not to open too many credit accounts with in 6 months as it shows you're desperate for credit.

The CRAs are wrong to make those recommendations (and they know it), as they don't understand risk assessment. 

There is no one size fits all answer. Two accounts in 6 months would not be an issue for anyone with a 'brilliant' credit history.

Brie

cmbrookes said:

Hi all 

I currently have a credit card with 0% interest which runs out next May. I am paying this off and plan to pay it off by the time the 0% interest ends. NatWest have offered me a credit card on 0% purchases and balance transfers for 23 months. I’m wondering what the best thing would be to do in terms of pay off the current credit card or take out the NatWest one with lesser monthly payments over an extended period.

If you can afford to pay it off by next May (2024?) why lose out on all those months of 0% credit?

I like another's suggestion of getting the card simply for the 0% on purchases.