Limit on balance transfer not high enough

livewire82

I have 3 credit cards that I've only just realised I'm paying high interest on. So I wanted to combine the debt of all 3 and do a balance transfer (for all 3 cards) onto a new one with a 0% interest free period. I was looking to transfer a total of just under £10,000 but even though I was pre-approved to transfer this amount, only after successfully getting through the application process did it reveal that there was a balance transfer limit of just over £5,000. So I've gone ahead and selected the cards that I'm currently paying the highest interest on but that still leaves me with a fair chunk that I really should move onto another new card with a 0% period.

My question is, assuming there will be no issue with this and I'm pre-approved again (given that I'm moving money as opposed to applying for additional credit), how long should I be waiting before I attempt another application. I'm assuming I have to wait at least until the balances on this first application have moved, but does this update on my credit file straight away or is there typically a delay?

The other question I have is, at what point should I consider closing credit card accounts? I understand doing so will likely affect my credit rating as it increases the usage percentage of credit against what I have available but at some point if I keep all of these accounts open, I will eventually reach my limit of available credit. How can I find out how many credit card accounts I have open, including the dormant ones with zero balance?

vacheron

Personally, when I am ready to apply for new BT cards I apply for 3 or 4 within a 10-15 minute window.
This way, the credit searches for the later cards don't show the applications for the previous cards made just minutes earlier.

Closing accounts is a balancing act. Too many cards open and you could get a lower limit (or refused) on new card applications because your available balance is too high. Close a few accounts and you fall foul of having too high a usage percentage. 

In my experience, the former is more problematic than the latter. I have ran into companies getting twitcy recently when the sum of my other cards exceeded 100% of my gross salary, but previously they have been happy to give me cards with decent limits when the total of my other credit cards exceeded 150% even with a 75-85% usage percentage.

Getting a copy of your free credit report should show all cards (used and unused) which you own which are currently open. 

DullGreyGuy

vacheron said:

Personally, when I am ready to apply for new BT cards I apply for 3 or 4 within a 10-15 minute window.
This way, the credit searches for the later cards don't show the applications for the previous cards made just minutes earlier.

Credit card companies dont see the version of the history you do. For consumers the CRAs tend to update somewhere between weekly and monthly. For Credit Providers it's a live feed. Now credit providers dont update account positions live but obviously for searches the CRA knows about it before the search is even complete. 

livewire82 said:

The other question I have is, at what point should I consider closing credit card accounts? I understand doing so will likely affect my credit rating as it increases the usage percentage of credit against what I have available but at some point if I keep all of these accounts open, I will eventually reach my limit of available credit. How can I find out how many credit card accounts I have open, including the dormant ones with zero balance?

Personally a fan of ClearScore, other than when they send a message saying someone has searched your credit history and you log in to see the search was done by them themselves. Obviously they then hope you check what credit cards or loans you may get, on which point I've found their predictions to be more accurate than most however few CCs given an indication of limit via them.

vacheron

DullGreyGuy said:

vacheron said:

Personally, when I am ready to apply for new BT cards I apply for 3 or 4 within a 10-15 minute window.
This way, the credit searches for the later cards don't show the applications for the previous cards made just minutes earlier.

Credit card companies dont see the version of the history you do. For consumers the CRAs tend to update somewhere between weekly and monthly. For Credit Providers it's a live feed. Now credit providers dont update account positions live but obviously for searches the CRA knows about it before the search is even complete. 

Yes, I should probably have said the providers ultimate lending position / amount rather than their "searches", which will probably be upgraded quite quickly.

I just stated it as a method which has historically worked quite successfully for me.

Superhoopza

vacheron said:

Personally, when I am ready to apply for new BT cards I apply for 3 or 4 within a 10-15 minute window.
This way, the credit searches for the later cards don't show the applications for the previous cards made just minutes earlier.

Closing accounts is a balancing act. Too many cards open and you could get a lower limit (or refused) on new card applications because your available balance is too high. Close a few accounts and you fall foul of having too high a usage percentage. 

In my experience, the former is more problematic than the latter. I have ran into companies getting twitcy recently when the sum of my other cards exceeded 100% of my gross salary, but previously they have been happy to give me cards with decent limits when the total of my other credit cards exceeded 150% even with a 75-85% usage percentage.

Getting a copy of your free credit report should show all cards (used and unused) which you own which are currently open. 

Apparently according to some on here, the point in bold is almost irrelevant. Total available credit, opening accounts recently and the standard stuff like being on the electoral role etc are more important than utilisation (so long as it is not around 90%+ imo).

vacheron

Superhoopza said:

vacheron said:

Personally, when I am ready to apply for new BT cards I apply for 3 or 4 within a 10-15 minute window.
This way, the credit searches for the later cards don't show the applications for the previous cards made just minutes earlier.

Closing accounts is a balancing act. Too many cards open and you could get a lower limit (or refused) on new card applications because your available balance is too high. Close a few accounts and you fall foul of having too high a usage percentage. 

In my experience, the former is more problematic than the latter. I have ran into companies getting twitcy recently when the sum of my other cards exceeded 100% of my gross salary, but previously they have been happy to give me cards with decent limits when the total of my other credit cards exceeded 150% even with a 75-85% usage percentage.

Getting a copy of your free credit report should show all cards (used and unused) which you own which are currently open. 

Apparently according to some on here, the point in bold is almost irrelevant. Total available credit, opening accounts recently and the standard stuff like being on the electoral role etc are more important than utilisation (so long as it is not around 90%+ imo).

I agree (as I went on to say in the subsequent paragraph).

I think total available credit is the biggest "brick wall" though the other things you mentioned certainly have a bearing.

I've been sitting with £80K+ of combined credit card limits at about 80-85% for the last few years with no problems at all, however in August I managed to sneak another £11K out of a new 0% BT card, which seems to have tipped my total unsecured credit limit over the edge.
So now, despite my utilisation % actually falling, I have basically been ostracised by the entire credit industry. 

For example, last week I transferred one of my current accounts to Santander for the £150 switching bonus, and they asked if I wanted an overdraft, which I didn't, but I put down the minimum £50 just in case something sent me a few pounds overdrawn for whatever reason.

The next day they sent me a secure message informing me that they were, regretfully, unable to offer me the £50 overdraft I had requested... so would I like to proceed without one?   

molerat

The cards that you are clearing may offer some 0% / low APR BTs.