Opinion on applying for a second 0% spending card

ChewyyBacca

Hi
I have a fairly new 0% spending card with a 75% utilization, Im paying min payments on it monthly.

Now I have an impending £5000 spend, which my current 0% card wont be able to meet.

1. Should I apply for another 0% card? It is shown preapproved on MSE eligibility calculator, I have impeccable credit score.

2. I have a five year old HSBC card , that now I use sporadically and pay in full every month. Is it possible to apply to HSBC to convert existing card to 0% since they have all the history? Or if I apply, is it possible that they will issue me another 0% credit card?

Please suggest
Thanks

MrFrugalFever

If you are only paying minimum payments currently is this because a) it’s on 0% so you’re maximising this or is it b) you can only afford the minimum payments?

If it’s the latter then further debt would be discouraged and I would look at whether the money NEEDS to be spent soon or can it be saved up to cover that cost in total.

When applying for a second 0% credit card, you aren’t guaranteed a limit you need and more often than not you won’t get your limit until a full hard credit search and acceptance has been carried out. If it falls short of £5,000, how will you make up the difference?

ChewyyBacca

Thanks

I am postponing my payments due to the good interest rates currently, so plan to maximise 0%
And no I wont run in debt
If I can postpone the payment of £5000 (or £3500) today for a year & park those funds in 1 yr fixed, I earn £257 (or £180; ofcourse paying monthly minimum)

Yes, I am aware of the credit limit limitation. I expect them to give lower than £5K

My question is: Is there a precedent of companies issuing 0% cards to customers when they already have another 0% running?

Thanks

grumbler

ChewyyBacca said:

2. I have a five year old HSBC card , that now I use sporadically and pay in full every month. Is it possible to apply to HSBC to convert existing card to 0% since they have all the history? Or if I apply, is it possible that they will issue me another 0% credit card?

IMO, best offers are typically for new customers. Don't know about HSBC, but for existing customers the offers are often shown in the online account or in the app. You can ask, but don't hold your breath.

Regarding a second card with the same provider, this used to be a norm for some providers in the past, but, I think, is far less common nowadays.

ChewyyBacca said:

My question is: Is there a precedent of companies issuing 0% cards to customers when they already have another 0% running?

I don't see any problem with this. It's just a normal application for a new card as, I think, the new lender does know that the existing balance is at a promotional rate.

elasto

It's probably relatively rare for a company to offer a 0% on a second card when you've already got a 0% with them.

Having said that, this month I just finished paying off two Virgin credit cards that both had 0%'s running on them, so it clearly can happen. (Plus as soon as I cleared the balance they offered me a brand new 18mo 0% interest for BT & MT, so they seem to be keen...)

It's obviously much more common for different companies to make 0% offers to you concurrently. I have a number of credit cards open for this very reason. I currently have five cards willing to give me money at 0% for 18mo+ (fees of up to 3.5%). With most cards you can just check in the app for current offers.

DJDools

ChewyyBacca said:

My question is: Is there a precedent of companies issuing 0% cards to customers when they already have another 0% running?

Managed to apply and get a second 0% CC with NatWest, if that helps. The existing CC had no debit on it by then, though.

elasto

I concur about NatWest.

I have a 0% card with NatWest with a balance, and the eligibility checkers say I am preapproved for a new one, also with NatWest, also with a 0% offer, so it looks like they are one of the companies that do it.