Best Balance Transfers Discussion Area

Trigle

Hi Moggles and thanks.

What I mean is this:

I have an £800 debt which I will be transferring shortly for 24 months at a rate of 2.9% APR and will have to pay a 3% fee to do so.
I am self employed and sometimes have to spend money on equipment to increase my productivity and cashflow.

Say I wanted to buy something that was £300 but didn't have the cash to pay for it until after I do this balance transfer, wouldn't it be best to add it to the debt that will be carried onto the new HSBC card at 2.9% APR? Otherwise I'll be putting it onto the Bank of Ireland card and having to manage two cards instead of one.

The Bank of Ireland card doesn't have a long period of 0% on purchases, I think it's only 3 or 6 months. The new HSBC one has an introductory rate of 0% for 12 months.

King_Weasel

I'll let Moggles sort you out on which card to use for what. The usual rule is if you've done a bt, don't use the same card for purchases.

The only point I would make is that, especially judging from what you've already said, you should try not to let your future spending decisions be affected by the availability of cheap credit. Just buy what you would have bought anyway. If you can't so this, then to be frank you might be better off financially without a credit card at all.

Moggles_2

Originally Posted by Trigle
I have an £800 debt which I will be transferring shortly for 24 months at a rate of 2.9% APR and will have to pay a 3% fee to do so.

So this is HSBC's two-year balance transfer deal for new customers.
I think you'll find a 2.5% fee applies. (You may be thinking of the minimum monthly payment, which is 3% of the balance.)

I am self-employed and sometimes have to spend money on equipment to increase my productivity and cashflow. Say I wanted to buy something that was £300 but didn't have the cash to pay for it until after I do this balance transfer, wouldn't it be best to add it to the debt that will be carried onto the new HSBC card at 2.9% APR?

Well, it depends when the Bank of Ireland's 0% on purchases runs out, doesn't it? I would check the exact end date before you reach a decision.

Most MSEs would rather have £300 of purchases interest-free for say 3 months with Bank of Ireland than pay a fee to shift the debt to a card which charges interest. That said, 2.9% APR is a low rate. It's your choice really.

Otherwise I'll be putting it onto the Bank of Ireland card and having to manage two cards instead of one.

If you want to take up HSBC's balance transfer offer and use a credit card for purchases, you will need two cards anyway.

The Bank of Ireland card doesn't have a long period of 0% on purchases, I think it's only 3 or 6 months. The new HSBC one has an introductory rate of 0% for 12 months.

As mentioned in #180 and #183 above, please remember - and this is crucially important - not to spend on the HSBC card. Just transfer the balance(s) within 30 days of account opening, put the card away in a drawer and make the monthly repayments. For an explanation, see Martin's *Never spend on a Balance Transfer card* article on the main site

Very best
M

YorkshireBoy

Moggles wrote: »

(You may be thinking of the minimum monthly payment, which is 3% of the balance.)

Recently(?) lowered to 2.5% (or PPI + £5, whichever is higher), Moggles.

Trigle

Thanks for the help

rainbowstar

Hi, could someone please help...
I have an Amazon credit card with $960 on it
and a Barclaycard with $400 on it.
I wanted to combine the two on a 0% card but everytime I apply, I'm turned down. I don't know why this is because I have never missed any payments and always pay more than the minimum required.
Is there a credit card out there that would treat me as an individual and not just data on a computer?
I'm really getting stressed with all this!

Moggles_2

Originally Posted by rainbowstar
I have an Amazon credit card with £960 on it and a Barclaycard with £400 on it.
I wanted to combine the two on a 0% card but every time I apply, I'm turned down. I don't know why this is, because I have never missed any payments and always pay more than the minimum required.
Is there a credit card out there that would treat me as an individual and not just data on a computer?

Have you checked your credit reports lately? This is the information UK lenders see when you apply for a new credit card (For help, see the *How to obtain credit reports* sticky.)

To help you further, we need to know which credit cards you currently hold and which ones you applied for unsuccessfully.

gruffalo_2-2

Hi there ,
newbie here . I do appologies if this question has already been asked. I have a problem in that all the cards mentioned for best balance transfers are the ones I already have. which is egg balance of £4000 card has been cancelled as of last week by egg. virgin balance of £6000 interest gone up to 34.9% as of this week and an available balance of £9400 on hsbc whom I have rang a couple of times to find out about existing customer balace transfer rate and am always told this is cumputer generated and that there is no offer for me at the moment. I am a house wife on an annual income of £5000. Am worried about applying for other cards due to my low income and the amout of debt that I already have. Any advise would be much appreciated.
many thanks

Moggles_2

Originally Posted by gruffalo
All the cards mentioned for best balance transfers are the ones I already have. Egg card (with balance of £4000) has been cancelled as of last week by Egg, Virgin (balance of £6000) interest up to 34.9% as of this week and an available balance of £9400 on HSBC whom I have rung a couple of times to find out about existing customer balance transfer rates. I'm always told this is computer generated and that there is no offer for me at the moment. I am a housewife on an annual income of £5000. Am worried about applying for other cards due to my low income and the amount of debt that I already have.

Your current debt in relation to your income means a 0% balance transfer card may not be an option at the mo, as I think you realise.

That said, there are low-interest rate deals which could save you money. Have you considered the Marks & Spencer &More card, for instance? I ask because the marketing of this card seems to be aimed at ladies and I seem to remember the application asks for household income rather than salary.

The current deal offers fee-free balance transfers at 7.9% p.a. for two years. You can request your BT(s) at any time up to 6 months from account opening but, once done, remember not to spend on the card

For tips to improve your chances of acceptance, have a look at the *Credit Rating* articles on the main site, especially Martin's *Manageand Improve your credit score* article to make sure no other factors, besides your low income, are working against you.

Meanwhile, I would concentrate on paying as much as possible off your Virgin card each month. Clearing the debt ASAP will reduce the interest you pay and you'll be building a better credit history in the process.

gruffalo_2-2

thanks for the advice moggles. I have requested my credit report from experian so I will wait for that before appling for any cards in the mean time I have seen an offer on balance transfers for 36 months at 4.9% with goldfish. Does anyone know if there is a minimum annual salary required in order to apply as it does not say. will appreciate any feedback.