Best Balance Transfers Discussion Area

Lucyxx

Thanks to the advice on here, my OH has successfully opened the Tesco credit card and done a balance transfer of half the amount (which was almost the credit limit given by Tesco) from his Lloyds card which will cut the interest he is paying on that one by a great deal over the next 14 months.

Now I'm wondering if there would be any harm in applying for the virgin one aswell, and transferring the rest of the balance over to this to a 0% deal, which will mean he can pay off so much more a month without accruing any interest.

Will he be likely to be accepted by Virgin seeing as he has only just opened the Tesco one??

Our thinking is, it doesn't really matter if he has another application on his credit file, as we are not likely to be needing any credit for a good couple/few years, (and then it is only likely to be for purchasing a new sofa and paying the rest off after the deposit taking advantage of any 0% deals). He has already probably got a bad rating from arrears on his Lloyds CC. Also am I right in thinking this info will still be on his file for 6 years??

Finally feel we are getting somewhere, and he himself has had his lightbulb moment (he even cancelled his beloved Sky Sports the other day to use the moneysaved to go as extra towards his CC bills!)!!

TIA

Lucy x

Moggles_2

Lucyxx wrote: »

My OH has successfully opened the Tesco credit card and done a balance transfer of half the amount (which was almost the credit limit given by Tesco) from his Lloyds card which will cut the interest he is paying on that one by a great deal over the next 14 months.

Congratulations on getting accepted for a Tesco card
:beer:

I'm wondering if there would be any harm in applying for the Virgin one as well and transferring the rest of the balance over to a 0% deal, which will mean he can pay off so much more a month without accruing any interest.

Virgin has a reputation for more generous limits than Tesco, so I would have applied to Virgin first TBH, but he chose Tesco, which is nevertheless a good deal.

Virgin's BT offer is still available to new customers (Note: 0% period is now 15 months, but otherwise unchanged) and, in these circumstances, there's nothing to lose in giving it a go.

Will he be likely to be accepted by Virgin seeing as he has only just opened the Tesco one?

Sorry, only Virgin knows the answer. Lenders do not disclose the criteria they use to decide.
His available credit in relation to his income is likely to be a factor though.

Moggles_2

Lucyxx wrote: »

My OH has probably got a bad rating from arrears on his Lloyds CC. Am I right in thinking this info will still be on his file for 6 years?

There's a difference between late payments and missed payments. Fortunately, it sounds as though his are the former.

Missed payments can wreck your credit rating for years, but a late payment or two will not affect his credit score for very long. It's your payment history with all your creditors over the last 6 years that counts, with particular emphasis on the most recent 12 months.

Lucyxx

Moggles wrote: »

There's a difference between late payments and missed payments. Fortunately, it sounds as though his are the former.

Missed payments can wreck your credit rating for years, but a late payment or two will not affect his credit score for very long. It's your payment history with all your creditors over the last 6 years that counts, with particular emphasis on the most recent 12 months.

Thanks Moggles, I think he has been bad with late and missing payments on and off for the last few years unfortunately, which is what I have discovered in the last few months.

I also said to him he had nothing to lose by applying to see if he could get the Virgin one aswell, so will give that a go. I have a huge feeling they will say no, but it's worth a try.

Luckily everything else bill wise he has been fine with, just completely naive about CC's, and also to my discovery a loan which I am also currently sorting out (he kept up all the payments on that aswell). The loan payments are currently for another 5 years :mad: :mad: :eek: :eek: :mad: he had led me to believe they were finishing in a couple of months, and this was the money I was going to get him to put towards paying off his new Tesco card each month.

My new plan (thanks to help on here) is to ask for a settlement on the loan, then use money from sold shares to clear that. Which will them free up the money for payments to the new credit card again. If he can get another BT that will clear the rest of that CC's interest. Which will really see him making a good dent in the balances with no interest to pay for 14/15 months.

Nothing ever works that easy though does it!! it will be back to the drawing board if Virgin say no!

Thanks again for your help Moggles. You are great on here :beer:

Moggles_2

Lucyxx wrote: »

My new plan (thanks to help on here) is to ask for a settlement on the loan, then use money from sold shares to clear that, which will then free up the money for payments to the new credit card again. If he can get another BT, that will clear the rest of that CC's interest, which will really see him making a good dent in the balances with no interest to pay for 14/15 months.

Sounds like a plan.;)

Very best
M

koru

6banana0 wrote: »

Hi there

I'd like to arrange a balance transfer to clear my NZ credit card. Is this do-able? Anything I need to know before I approach the UK banks? Thx!

As someone already said, UK credit cards won't transfer to a NZ account. However, there are cards that will do a balance transfer to your UK current account (assuming you have one), even if it is not overdrawn. You could then transfer it yourself to NZ.

koru

Sorry if this has already been discussed, but I don't have time to read 1800 posts in this thread.

Surely the plunge in interest rates has significantly reduced the number of people for whom these cards are beneficial? 3% fee for 15 months is equal to about 2.5% interest, which is quite a high interest rate, these days. It is scandalous to claim these cards are interest free. It is like MacDonalds announcing BigMacs are free, but there is a £3 fee per BigMac for service at the counter.

If you would otherwise be paying more than 2.5% interest over the next 15 months (such as a card charging 29%), then of course it is worth doing a BT to a card with "zero interest" and 3% fee. But consider if you could borrow the same amount cheaper somewhere else.

It would also be worth doing this if you can earn more than 2.5% (net of tax) over the next 15 months, by investing the money somewhere, but that is getting pretty tricky these days.

Moggles_2

koru wrote: »

UK credit cards won't transfer to a NZ account. However, there are cards that will do a balance transfer to your UK current account (assuming you have one), even if it is not overdrawn. You could then transfer it yourself to NZ.

For this you need:

a card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin), Egg card or the Post Office card.

A BT fee applies, but there are no other charges during the introductory 0% period.;)

Moggles_2

koru wrote: »

Surely the plunge in interest rates has significantly reduced the number of people for whom these cards are beneficial? 3% fee for 15 months is equal to about 2.5% interest, which is quite a high interest rate, these days. It is scandalous to claim these cards are interest free. It is like MacDonalds announcing BigMacs are free, but there is a £3 fee per BigMac for service at the counter.

I think you'll find the card companies are careful to avoid the phrase "interest-free" when advertising these 0% balance transfer deals.

If you would otherwise be paying more than 2.5% interest over the next 15 months (such as a card charging 29%), then of course it is worth doing a BT to a card with "zero interest" and 3% fee. It would also be worth doing this if you can earn more than 2.5% (net of tax) over the next 15 months, by investing the money somewhere, but that is getting pretty tricky these days.

I think that's right, unless you have an offset mortgage or fixed-rate savings accounts taken out before interest rates dived.

If you're intent on making a few quid using credit cards, the 0% on purchases deals are probably the way to go.;)

unidentified

Anyone that's applied to the Virgin 0% BT or Abbey 0% BT deals recently, may I be so bold as to ask what credit limit you received?