Best Balance Transfers Discussion Area

azabrown

Hiya folks,

I've had a good look through the site and this particular thread on the forum, and have a few ideas of my way forward, but just wanted to say my piece and get other people's opinions before I take action!

I can't believe I've gotten myself into this much debt, but for a bit of background information I'd like to tell you of my circumstances - I'm a Music Promoter, and feel like my money supply was just suddenly cut off in an instant when firstly the smoking ban came in a couple of years ago, and that, coupled with the credit crunch - people simply stopped coming out as much! (Prior to that, I'd been earning a healthy self-employed living for 7 years!) I panicked, and unwisely dipped into the Credit Cards thinking it'd turn 'round as I had a bit of a "cash cow" in one of my clubnights, but I've only JUST turned it 'round now, and have found myself in 25k of debt spread over 7 cards with 6 of their 0% deals coming to an end (which I'll list later). Also, I made a mistake in investing in a new project last October which bombed, and find myself in this position now.

As I have said, my original clubnight is up and healthy again at a new venue, and I have the possibility of turning the whole debt around by Christmas, which I'm quite confident of doing, but in the meantime I'm being stung with around 30% on 6 cards.

I'm on the electoral role at my present house where I've been for 3 years, but the last card I applied for (Citi) in January they only gave me £500 although I applied for £5k! All the other cards I applied for at my other house in the last 2 years (a buy to let), where I'd lived for 9 years before moving here (and still own) - even though I wasn't living there and wasn't on the electoral role - I informed the Card Companies this, but they still let me apply under that address, and gave me all the rest of the credit listed below!!

I'm wondering if I should just apply under the old address again (is it legal? It seemed so before!) as I'd had nearly 10 years of bills/mortgage/credit going there, and my credit report which I've checked with Experian is gleaming. I'm not sure what my credit rating is though, and how I'd find that out (I've read there's no definitive measure), but was worried about applying for more credit and transferring the balances, and being knocked back, as I've got so much debt already.

From what I've read, it'd be good for me to apply to Halifax, Santander and Egg and spread them all across there and keep the interest at bay. Then, come August I've got a big clubnight coming up that should bank me 12k, and 2 more before the end of the year. Like I say, I can see the light (not an oncoming train!), but just need to get through these next few months......

Barclaycard - 7100
Capital One - 5800
MBNA - 3200
A & L - 4500
Virgin - 1800
Mint - 2000
Citi - 500

I've not tried any shuffling, or even calling up to try and negotiate a new rate yet - thought I'd just try and get someone's advice on here before I do anything.

Any help and advice would be much appreciated!

Cheers,

Aza

Moggles_2

wendydrury wrote: »

I recently cancelled an Egg card and still have an Egg Money mastercard for cash back , so guess I wont be reaccepted for an Egg Visa Card for at least 12-18months.

That's right. Egg will not consider applications from former cardholders in the 12 months following closure.

To help you further, we need to know which cards - besides Egg, Halifax and Virgin - you have at the mo or have held recently.

Moggles_2

azabrown wrote: »

I'm on the electoral roll at my present house where I've been for 3 years, but the last card I applied for (Citi) in January only gave me £500 although I applied for £5k! All the other cards I applied for at my other house in the last 2 years (a buy to let), where I'd lived for 9 years before moving here (and still own) ...

Lenders do not disclose the criteria they use to decide on credit limits, but your available credit in relation to your income is likely to have been a factor, particulary as you already held six credit card accounts when you applied to Citi.

In addition to the number of accounts in use, lenders look at the extent their credit limits have been utilised. Maxed out accounts make you look stretched so, if you're going to apply for market-leading BT cards, it's wise to leave some headroom

That said, from feedback here, Citi is not known for generous credit limits, so I would keep an open mind about the reasons.

Moggles_2

azabrown wrote: »

I'm not sure what my credit rating is and how I'd find that out (I've read there's no definitive measure).

I'm sure Experian would supply you with a credit rating on payment of a fee, but credit scores are at best a very rough guide.

It's easy to be lulled into a false sense of security by these numbers. Then it comes as a shock, when your application is turned down. (Equally, some forum users are put off applying at all, because of low scores.)

Credit reference agencies are there to provide your credit history. The actual methodology (and the process of scoring itself) is done by their clients, the lenders. None of us - including the CRAs - knows what criteria are used by individual companies. Lenders do not disclose this information

Credit reports, when ordered directly from Experian and Equifax, are valuable. After all, this is the information lenders search when you apply for credit. Experian sends accompanying notes, which are a good read too. Additional services like credit ratings are a nice little earner for the CRAs, but of little practical value to cc applicants and certainly not worth paying extra for, IMO. I wouldn't let these numbers distract you from tackling the things that really matter.

For more info' and 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

JimmyTheWig

wendydrury wrote: »

I've just made a huge mistake and have purchased on my Virgin 0% card which I had transferred a £1800.00 balance in December last year. This means I have to transfer to another 0% quickly to avoid paying interest on it.

While this is generally a bad thing to have done (as you recognise) you may be making things worse by transfering the debt elsewhere.

How much was the purchase for?
What interest rate will you be paying on the purchase?
When does your 0% run out?
What do you plan to do once your 0% runs out?

For example, if you spent £100 and are now paying 20% interest on it then that will cost you £20 interest over a year. A 3% BT fee would cost you £57.

Moggles_2

azabrown wrote: »

From what I've read, it'd be good for me to apply to Halifax, Santander and Egg and spread them all across and keep the interest at bay.

Yes, 13 months at 0% is currently available to new customers from Halifax on balance transfers made in the first 90 days. There's a 3% BT fee.
IME, and from feedback here, credit limits are generous and the minimum monthly payment is just 1% of the balance shifted

http://www.halifax.co.uk/creditcards/pluscard136.asp

Alternatively, 0% until 1 July 2010 is available from Egg. A 3% BT fee applies.

http://new.egg.com/visitor/0,,3_84106--View_1763,00.html

If you decide to chance your arm with Santander, it's advisable to apply in branch. Online applications are still subject to long delays, apparently :rolleyes:

CarlyB_2

Hi everyone, any advice on this would be appreciated.....

I applied for a Virgin Credit card recently, all I want to do is transfer the balances of my other two credit cards so I can pay them off. But even though I have a good credit rating (no missed payments, payments on time, had credit accounts for years) they refused to give me one, saying because my credit cards were nearly at their limit they didnt want to take the risk.

The person I spoke to suggested applying for a card that just uses your credit rating instead of looking at other card balances etc, but does anyone know of any that do this?! Its almost impossible to find any information! Also, credit card companies dont seem to like that fact I'm a student (even though I'm a PhD student who gets a grant equivalent to earning nearly £13,000, and I do some extra teaching work too). Does anyone have any suggestions? I'm paying a fortune in interest because my 0% interest period has finished now!

Thanks!

Moggles_2

CarlyB wrote: »

I applied for a Virgin Credit card recently. All I want to do is transfer the balances of my other two credit cards so I can pay them off, but even though I have a good credit rating (no missed payments, payments on time, had credit accounts for years), they refused to give me one, saying because my credit cards were nearly at their limit they didn't want to take the risk. The person I spoke to suggested applying for a card that just uses your credit rating instead of looking at other card balances etc, but does anyone know of any that do this? Also, credit card companies don't seem to like the fact I'm a student (even though I'm a PhD student who gets a grant equivalent to earning nearly £13,000 and I do some extra teaching work too). Does anyone have any suggestions? I'm paying a fortune in interest because my 0% interest period has finished now.

Sorry, lenders do not disclose the criteria they use to decide. Perhaps, because to do this would only encourage applicants to be economical with the truth. Your available credit in relation to your income is likely to be a factor though.

In addition to the number of accounts in use, cc providers look at the extent their credit limits have been utilised. Maxed out accounts make you look stretched so, if you're going to apply for market-leading BT cards like Virgin, it's wise to leave some headroom. Are you only repaying the minimum required each month? If you have savings, I would pay down your debts before making a further application

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

To help you further, we need to know which cards you have at the mo or have held recently.

Librarylottie

Moggles wrote: »

That's right. Egg will not consider applications from former cardholders in the 12 months following closure.

To help you further, we need to know which cards - besides Egg, Halifax and Virgin - you have at the mo or have held recently.

In addition to those mentioned - currently I have cards with M&S, Nationwide - I also have current account and mortgage with them - and I also cancelled a Barclaycard within the last 12months.

I went into Abbey to see if I could get the Santander card, but their system was down in our local branch.

Any advice greatly appreciated. Thanks

Librarylottie

JimmyTheWig wrote: »

While this is generally a bad thing to have done (as you recognise) you may be making things worse by transfering the debt elsewhere.

How much was the purchase for?
What interest rate will you be paying on the purchase?
When does your 0% run out?
What do you plan to do once your 0% runs out?

For example, if you spent £100 and are now paying 20% interest on it then that will cost you £20 interest over a year. A 3% BT fee would cost you £57.

Unfortunately it was airline tickets etc and the total spend was about £1800 so guess it's cheaper to pay a 3% on it?