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Limit on balance transfer not high enough

livewire82
Posts: 40 Forumite

in Credit cards
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?
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?
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Comments
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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.• The rich buy assets.
• The poor only have expenses.
• The middle class buy liabilities they think are assets.
Robert T. Kiyosaki2 -
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.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?0 -
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.
I just stated it as a method which has historically worked quite successfully for me.• The rich buy assets.
• The poor only have expenses.
• The middle class buy liabilities they think are assets.
Robert T. Kiyosaki0 -
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.0 -
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.
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?• The rich buy assets.
• The poor only have expenses.
• The middle class buy liabilities they think are assets.
Robert T. Kiyosaki0 -
The cards that you are clearing may offer some 0% / low APR BTs.
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