Balance transfer plan

where_are_we

My 0% purchases CC promotion runs out in a few weeks. I have opened a new 0% no fee 12 month BT CC and will transfer the balance of my old 0% purchases CC to this new CC. However the credit limit of the new card is £300 less than the balance I have applied to transfer. I presume the best policy is to make a payment immediately of £300 to my old CC to reduce it`s balance to the credit limit of the new BT CC so that the balance of the old CC will reduce to 0 when the transfer takes place?

I will have no further use for the old CC. I already have numerous CCs. I presume best policy is to close the old CC?

I also have another 0% purchases CC with a balance of more than £7000 and increasing that has almost a year before 0% purchase promotion runs out. When that time draws near how do I make sure I have sufficient credit limit of a new 0% no fee CC to cover a BT of £8000. Is it ok to apply for 2 different new 0% no fee BT CCs (if ones are still available) and part transfer the balance of the old  0% purchases CC?

prettyandfluffy

Have you taken account of the fact that balance transfers are often limited to 95% of the available balance rather than100%?

Brie

Yes close any card you are no longer using unless there's a good prospect of having another deal pop up.  MBNA are very good about always having a deal for me but other cards less so.  When you close a card you reduce the risk you present to banks and so are more likely to be offered deals and can also be a better prospect for a new card deal back with that same bank a few months down the line.  

How to make sure you make sure you have a sufficient credit limit with a new 0% offer?  Well there's no guarantee so you might have to look at having to pay the interest when the current deal runs out.  You can part transfer to 2 or more different cards - as long as they are not with the same banking group.  

But the big concern is why are you so dependent on having these deals?  If the £7k card is increasing steadily you need to find a way to stop spending so much.  Maybe you need a hop over to the debt free wannabee board to fill out a statement of accounts so you can get some budgeting help?

where_are_we

Thanks Brie - I will close my CCs which serve no purpose and are not used.

Your concern about my spending and debt management is misplaced.

I have ample funds to cover my CC debt. I would not even contemplate paying interest when an promotional 0% purchase CC ends (in all the decades of having CCs I have never paid 1p in interest payments) - what I can`t BT I will pay off the outstanding balance in full. Slow stoozing with 0% purchase cards gives a far better return than cashback CCs. I use 0% purchase CCs as much as possible for all spending. I am not dependent on these deals and consider it easy money. With regards to spending my family and myself are in the miserly category, but big budget spends do crop up eg £2880 to replace a clapped out 30 year old boiler a few months ago.

where_are_we

prettyandfluffy said:

Have you taken account of the fact that balance transfers are often limited to 95% of the available balance rather than100%?

Rung new 0% BT  CC people up and you are correct - 95% of credit limit applies for the BT. All good. That`s another £3K earning interest for a year.

Nasqueron

The way I would do it is to move all the balance you can, then set the direct debit to clear the old card balance in full so there is the DD guarantee to back you, provided you do the transfer in plenty of time for the DD to be created, it will only take the remaining balance. It's possible to pay manually of course but the DD after the statement, provided before the end of the 0%, at least gives you the maximum time at 0%