0% balance transfer

Kazzam1984

Hi all. I have a 0 balance transfer card thats been open for years. It currently has 0 balance but a 3k credit limit. We are due to start the remortgage process as out fixed rate ends 30th sept. If I transfer a balance from my other card to the 0% card will that affect my credit score. Or should I hold off until remortgage. Possibly staying with same lender due to about of debt. But don't want my credit score affected if I can help it

sourcrates

Your, so called credit score, can be affected by a financial change of any kind, the number you see is a credit reference agencies interpretation of your credit worthiness, they don`t lend money, so its pretty much a guessing game with them.

A lender will score you using their own internal scoring system, which will only be a part of the decision making process, they will also look at affordability etc.

Best advice if you intend to look for a re-mortgage, is to do nothing of a financial nature for a good few months prior to application, make sure all your payments are on time, no unnecessary credit borrowing, no credit applications, basically keep a clean sheet.

Brie

If it was a case of taking out new credit then I'd definitely say don't. But if you aren't changing the total of available credit I don't think it will be a major issue.

I do suggest that you set up your DD for a specific amount so you're not just paying the minimum each month. It suggests that you are more in control of your finances.

Of course if the card is with the same bank where the mortgage is they'll know precisely what's going on with the card and that you have a 0% BT. If it isn't with the same bank then they would need to look at your credit history to confirm what you're up to financially.

ManyWays

There is normally a time limit on a 0% transfer; are you sure this is still available to you on this card?

If you just need a new fix from your current lender, they will not even look at your credit score or affordability.

Kazzam1984

So , part 2 of the story is that we have around 60k debt and I was debating going to a broker to see if we couldn't put some on mortgage ( which i am still really undecided about ) fur yo monthly affordability etc

RAS

https://forums.moneysavingexpert.com/discussion/comment/82025815#Comment_82025815

Please just stop. Don't even go there.

Stop paying all your consumer debt, default, live within your means and slowly pay off the consumer debt. In the end, you can probably negotiate settlements for £20-30k total. With few consequences other than being refused new credit for 6 years. You'll be able to renew the mortgage without credit checks meantime.

Put that debt on the mortgage and first off you've got to pass credit checks. And are likely to fail or get offered very high mortgage interest rates. Because you'll be paying off over more years, it'll be more expensive even if the APR is lower and there will be no chance of settlements.

Plus, you won't have learned to live within your means and will run up more consumer credit. Rinse and repeat, it's a recipe for disaster.

There's enough people on here who've tried consolidation and failed to suggest that your chances of succeeding are poor.