0% transfers

JonnyHS

We have two current credit cards (Vanquis and Barclaycard) in my wife's name, and a loan from Zopa in my name. We are able afford the payments, and have been paying slightly more than the minimum on the credit cards. However, we have a remortgage imminently and are looking to make a bigger monthly dent in the debt to reduce the time it will take to clear balances. I have a good credit rating and a healthy monthly salary. My wife's credit is also good, but her income is a mixture of employed and self-employed and can be variable.

Balances are currently:

Barclaycard - £700

Vanquis - £2700

Zopa - £3100 (current settlement amount)

BT card for the two credit card balances is straightforward enough, but am I right in thinking I'll need a money transfer card to include the Zopa loan? That might make it harder to achieve, and I know the 0% offer will be shorter on an MT card. Perhaps I could move the loan on to an MT card, wait a little while, and then put all three separate debts on to a single BT card.

Any advice welcome, and please don't judge us on how we got into this state!

Nasqueron

MT is required for Zopa yes, you can't pay a loan with a CC directly or via BT

Do note that lenders consider new debt alongside, not instead of, existing debt (as no guarantee you would use the BT for that purpose) and so limits may be lower. Similarly your mortgage lender would look at the debt even on 0% as it would effectively be the same amount (with fee obviously)

You can do a MT card then BT off the MT but whether you could get a card with £7000 limit (as transfers are typically capped 90-95% of the limit) is up to the lenders. Obviously any amount you get is beneficial to reduce interest and allow more payments to clear the other limits. Can you potentially both try for cards and split it that way?

Brie

How imminent is imminent?  Might be better to wait until after the remortgage to apply for another card.  

fergie_

Brie said:

How imminent is imminent?  Might be better to wait until after the remortgage to apply for another card.  

It also depends if doing a product transfer (with the same lender) or looking at whole of market where you will be credit scored.

JonnyHS

Thanks all for replying and apologies for not coming back sooner. Thanks also for confirming my research about MT and BT cards. Glad to know I'm not totally inept!

New mortgage will start from 1st August. It's a product transfer with Halifax, and I've been advised that they won't need a fresh credit check or affordability assessment, so I could apply for a new card(s) now.

I will at least try to get the two credit cards into a single 0% place with a new BT card. That's almost a no-brainer. I might then leave the Zopa alone until a few months have passed and try for an MT to cover that. Then, again after another few months, go for a second BT card to clear that MT.

Sound like a plan?

Thanks all, and I'll remember to check back more often this time.