Should I balance transfer?

proformance

Hi all,

I have £2.2k balance on a standard Halifax credit card (30% APR). 

I get alerts from Experian suggesting I can transfer the balance to a different provider who provides 0% interest on repayments for up to x months (~12 months).

Most do, however, incur a one-off transfer fee (~2%).
Though, NatWest does do one for FREE (no charge for transferring), however, the MSE eligibility checker said I have 0% chance of being eligible.

Would the forum recommend I take one of these options up?

I don't know if the long-term impact of applying for and opening another credit account outweighs the financial benefit of saving on x years of interest accrual.

Thanks,
Z

Nasqueron

I would suggest doing a soft search on the provider's website and seeing what they say. Experian are not the lender, they are only guessing what the lender will think.

If you just have a 2.2k balance and paying interest, the 0% could be an error, if you have a past history you haven't mentioned e.g. defaults or missed payments it's different.

You can get away with a couple of hard searches but don't do any more than that - a 2% fee transfer is pretty good to be honest and you'll save loads of interest even allowing for the fee.

Make sure you are not paying Experian for this useless "insight"

proformance

Nasqueron said:

I would suggest doing a soft search on the provider's website and seeing what they say. Experian are not the lender, they are only guessing what the lender will think.

If you just have a 2.2k balance and paying interest, the 0% could be an error, if you have a past history you haven't mentioned e.g. defaults or missed payments it's different.

You can get away with a couple of hard searches but don't do any more than that - a 2% fee transfer is pretty good to be honest and you'll save loads of interest even allowing for the fee.

Make sure you are not paying Experian for this useless "insight"

Why do you say this: "If you just have a 2.2k balance and paying interest, the 0% could be an error, if you have a past history you haven't mentioned e.g. defaults or missed payments it's different."?

Royoftherovers2024

I would try to switch if I were you.

I've got the Natwest 0% fee 0% rate myself.

RBS offer the same deal, I've got one of those as well.

enthusiasticsaver

Do you have any defaults?  Do you have other debts?  Are you employed?  

I am not sure why the MSE eligibility checker says you have 0% of transferring to Nat West  if you only have £2.2k outstanding on credit. This is why people are questioning it as it is a relatively low amount unless you have some large loans as well as this and or very low income or missed payments in the past. Does the MSE eligibility checker suggest you could be eligible for other deals even if there is a fee? 

easyasonetwothree

No harm in trying NatWest eligibility calculator to see if they're likely to approve you. MSE isn't always accurate.

maxximus75

You're always best to try the eligibility checkers directly on the websites as they will be more accurate.

Altior

OP the fee is negligible compared to the interest you are paying currently. So you should most definitely BT, and don't let the fee cloud your judgement! 2% fee is probably less than one month's interest that you're incurring right now. 

But yes, best to go for one that shows a strong possibility of success in the first instance (not 0%).

Nasqueron

proformance said:

Nasqueron said:

I would suggest doing a soft search on the provider's website and seeing what they say. Experian are not the lender, they are only guessing what the lender will think.

If you just have a 2.2k balance and paying interest, the 0% could be an error, if you have a past history you haven't mentioned e.g. defaults or missed payments it's different.

You can get away with a couple of hard searches but don't do any more than that - a 2% fee transfer is pretty good to be honest and you'll save loads of interest even allowing for the fee.

Make sure you are not paying Experian for this useless "insight"

Why do you say this: "If you just have a 2.2k balance and paying interest, the 0% could be an error, if you have a past history you haven't mentioned e.g. defaults or missed payments it's different."?

Because 2.2k debt isn't that high in the scheme of things, even for a minimum wage person, assuming you have a regular income, stable address and no defaults/missed payments etc, I'd be surprised if you couldn't get a decent transfer limit

proformance

To close the loop here. Moving ~£3k debt to a 0% balance transfer deal (with NW) has saved me so much money. Just wish I had done it sooner!! I almost feel guilty