Best Balance Transfers Discussion Area

Moggles_2

NineThreeNine wrote: »

Went to Natwest today and got offered a useful transfers card. 8.9% on transfers for life (not the best) however, after 3 months every 6 months they pay off 2% of the balance for you. Not 100% how this adds up, but it probably works out quite well. Not sure how this stacks up to the 6% cards though.

Why not plug some numbers into this credit card calculator? You can then estimate the time it would take to clear the balance at different interest rates. You can also see the effect of increasing your monthly repayments, by £10 per month say

http://www.whatsthecost.com/creditcard.aspx

It was around 9% for purchases for the first 12 months, which is really good if you accidently make a purchase on it!

Not unless you intend to pay off the entire balance within 12 months.

Generally speaking, it's wise to keep your balance transfer(s) and purchases on separate credit cards.

Martin's golden rule: never, EVER spend on a credit card after balance transferring to it! Definitely not money saving.

This is crucial when using a life of balance card

NineThreeNine

I really meant that 9% for 12 months (then 15%) was decent in comparison to some of the older cards. I remember the Intelligent finance card being around 25% for purcases!!! Although, yes it would be better to hide the card somewhere!

Just had a look at the leaflet, no balance transfer fee (strangley they never mentioned that at the bank!)

Looking at the numbers, it's better than the Capital One card (8.5% till 2012.) It's difficult to compare the numbers with the Barclay card in the article.

Using £1000 and the minimum payment, you'd pay £408.98 interest on the Natwest and £311.51 on the Barclay. So it's about £100 more if you compare the rates, but the 2% payments due skew this somewhat, and there isn't a calculator around that can work out the difference. Ignoring what effect these payments would have on the minimum payment (which would be minimal,) the amount 'paid' by Natwest would be just short of £100 by September 2012. It would take another 10 years to pay the card, in which you be looking at another £20/30 of payments from Natwest.

So from what I can work out, it seems to be the best 'low rate' for life card IF you make the minimum payment. I would estimate that it is also a better card if you pay slightly more than the minimum; however, from looking at the numbers it is definetly worse if your payments greatly exceed the minimum.

It would be nice if Martin could get someone to look at this, as it would be nice to get some more precise numbers/calculator.

Although, 'stoozing' would definetly be a cheaper option than both cards!

TopHat

JimmyTheWig wrote: »

You can do this and you are allowed. However, you need to be aware that this will place the debt in your name. If payments cease (for whatever reason) then it will be you they will chase.

Thanks so much for the reply, it's my first time on this forum and I appreciate your help.

It's not a huge amount just £3,000 and as he is 19 we are happy to help by stopping the interest to help him pay it off. Do you know how I can do it? I have been told that I cannot transfer a balance from someone else's card to mine and would need to pay a credit card cheque into his bank account then pay off his credit cards and then transfer the balance from my credit card to a 0% card. This makes it more expensive a direct balance transfer would be cheaper?

TopHat

YorkshireBoy wrote: »

You've been "told" incorrectly..

If you post your son's provider name then you'll be advised which cards to avoid.

Thank you soooo much this forum is great, my son has the balance on 2 cards. A M&S Money and a HSBC credit card.

Moggles_2

TopHat wrote: »

I have been told that I cannot transfer a balance from someone else's card to mine and would need to pay a credit card cheque into his bank account, pay off his credit cards and then transfer the balance from my credit card to a 0% card.

Not so.

You can switch credit card balances from family, friends or Dave down the pub. You should bear in mind though, that the person whose card your son's balance is shifted to, then becomes soley liable for the debt.

From the lender's perspective, it's not a problem. If you request the transfer by phone, customer services may ask you for the name on the card, but this is purely an additional verification check. At the end of the day, the card company is after your business. They're not really interested in knowing who ran up the debt, as long as you, their customer, pay up on time each month

Moggles_2

TopHat wrote: »

My son has the balance on 2 cards, a M&S Money and an HSBC credit card.

These two cards belong to the same stable, so that leaves lots of possibilities.

To maximise the 0% period, 16 months is currently available to new customers from Virgin. There's a 2.98% handling charge.

http://uk.virginmoney.com/credit-card-v3/

Alternatively, you'd get 14 months with Tesco. A 2.9% BT fee applies.

http://www.tescofinance.com/personal/finance/finance/creditcards/bonuscc/index.jsp

Which option is best depends, to some extent, on which cards you yourself have at the mo or have held recently.

N1SEXYTING

Some help and advice please, I currently have a Credit Card with Halifax with a balance of £1300 and my interest free period is up and I would like to transfer some of that balance. I am currently studying although I get a substantial bursary.

I also bank with Natwest and back in August I applied for their credit card which initially went through but then I got 2 letters rejecting me, one stating because I have a default on my credit check and the other because I am a student. Yet EVERYTIME I go into any Natwest branch, I am always offered a credit card as it pops up on their system and despite this default on my records, they gave me a Loan at the beginning of the year.

So my question is should I try to reapply for a natwest CC as I have banked with them for over 6 yrs and I seem to have 'good' internal credit rating. Or should I take my chances elsewhere.

I have recently got my credit check with both experian and credit expert and the default account only shows on my experian whereas this does not show my loan account whereas my credit expert does.

Thanks

Moggles_2

N1SEXYTING wrote: »

I have recently got my credit check with both Experian and Credit Expert

Strictly speaking, lenders carry out credit checks when you apply for credit facilities. The credit reference agencies (CRAs) have provided you with credit reports. These are the files UK lenders search when they do a credit check.

... and the default account only shows on my Experian, whereas this does not show my loan account, whereas my Credit Expert does.

Experian and Credit Expert are one and the same organisation. Have you obtained credit reports from Experian and Equifax or Experian and CallCredit, perhaps?

Moggles_2

N1SEXYTING wrote: »

I currently have a credit card with Halifax with a balance of £1300. My interest-free period is up and I would like to transfer some of that balance. I am currently studying although I get a substantial bursary. I also bank with Natwest and back in August I applied for their credit card which initially went through but then I got 2 letters rejecting me, one stating because I have a default on my credit check and the other because I am a student. Yet EVERYTIME I go into any Natwest branch, I am always offered a credit card as it pops up on their system and despite this default on my records, they gave me a loan at the beginning of the year.Should I try to reapply for a Natwest CC as I have banked with them for over 6 yrs and I seem to have 'good' internal credit rating or should I take my chances elsewhere?

It's less than 6 months since you first applied to NatWest, so I wouldn't do so again, if I were you. Also, I'd avoid the Royal Bank of Scotland stable (which includes Lombard Direct, Mint, NatWest, Tesco & Ulster Bank, as well as RBS itself), as it's likely the answer will be the same.

TBH, being a student means you aren't really in a position to get the best balance transfer deals on credit cards. NatWest is not known to score particularly harshly, but lenders launch these interest-free promotions, which are sometimes heavily advertised, to draw in new customers. Often they are flooded with applications and can afford to cherry-pick applicants. They are all going to see your lowish annual income and the missed payment in the same light.

As you already have a Halifax credit card, you're rebuilding a payment history for the future. Wouldn't you be better off with a student overdraft? Most are “interest free” for the period of your studies. This raises some other issues and you may want to post again on the *Student Money Saving* board

http://forums.moneysavingexpert.com/forumdisplay.html?f=25

For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide*, especially Martin's *Manage and Improve your credit score* article

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

moredough

Don't know if this has been covered already, but it may help someone, I've just spoken to A&L about a BT to my existing MBNA card and i've been offered 0% for 9 months with a 3% fee. I don't know if all will qualify. My card was empty and had been paid off in full.