Unexpected 0% balance transfer offer.

Zaul22

I have had a standard HSBC card for years and out of nowhere they have randomly offered me 15 months 0% balance transfers on the existing card... which is exactly what I have been looking for a new card for. It says I can apply for a balance transfer. I have never done a BT before... what exactly does apply mean in this context? As in will they do a hard credit check to decide if I can make the balance transfer, could they say no based on my score or the amount being too low or too high? Obviously in a normal situation this would be a hard check to apply for a new card and be approved or rejected, but this is a new offer on an existing card. 

MorningcoffeeIV

A BT means you transfer the balance from another card, subject to any fee.

They won't know anything about your score. They've already assessed your suitability themselves. The amount you can transfer needs to be within your limit and normally no more than 95%.

Belenus

Make sure that you take into account any fees for a 0% balance transfer on your card.

Most banks currently charge a fee of 2% to 4% or more.

There may be no fee with your HSBC offer but check before proceeding.

CliveOfIndia

Zaul22 said:

I have had a standard HSBC card for years and out of nowhere they have randomly offered me 15 months 0% balance transfers on the existing card... which is exactly what I have been looking for a new card for.

This may be stating the obvious, but you can't transfer your existing balance that's on the HSBC card to the same card - if that's the reason you were looking for a new card.  Unless they've offered you a Money Transfer deal as well (which is different to a BT).

Also, check the T&Cs carefully to see how payments are allocated - especially if you already have a balance on the card, or are planning to carry on putting routine spending on it.  Whilst any payment will be allocated to the highest-rate debt first, you just need to watch that you don't fall foul of "not clearing the balance in full" rules.

If you're planning to just do a BT and not use the card for anything else then that's fine - just ensure you make at least the minimum payment each month, and have a plan in place to clear the balance in full before the promotional rate expires.

Finally, if you're planning to transfer a balance from another card, be aware that you can't transfer from another card that's owned by the same company (a quick Google will show you who owns what cards).  One that I know of offhand, as I was looking into it a few months ago, is that HSBC owns the M&S card - so you couldn't do a BT from M&S to HSBC, for instance.

fergie_

You also need to make sure you don't miss any payments or go over your limit as you risk losing the offer rate and going onto the standard rate.

When you apply for the offer, they do check for fraud etc - but it isn't a credit check. In theory they could refuse it, but again unlikely.