Best Balance Transfers Discussion Area

thriftyfiftyfive

Just received my PO Credit card statement this morning and noticed an interest charge for a purchase added to my account. Knowing that I had not made a purchase as the card was to be used for balance transfers only I rang the PO customer service. I was informed that they add intrest if the charge for the balance transfer is not paid within the first 3 months of the account being open! I have thumbed through the T&C's but I cannot find anything that say anything about that.

marieofnie

Have posted this on another board but think its best off here :-)

I will be coming to the end of a 0% balance transfer and 2.9% purchase deal with Virgin at the end of this month. This morning I received an alarming letter informing me that as of August my new interest rate would be 34.9% APR!!!!!! Thinking that this must be a mistake as the variable interest rate was 16.9% when I applied for the card I contacted them and was told that I would be charged this rate as of august or could opt out and pay a lower rate (now 29.9% not 16.9%???) but have my account suspended until the balance was paid off. They could offer no explanation as to why this was this case especially given I have a good credit history, never made a late payment, always pay more than the minimum payment and have had no change in circumstances.

I would probably get a better deal from a loan shark at 34.9% but thankfully I have been able to transfer my balance to other cards. However, if this is their standard practice at the end of a deal period I fear that some people may not be able to transfer and be stung with the interest so please bear this in mind before transfering.

Hope this is helpful xx

CannyJock

Yup, reported almost daily. They've got to try and make their money somehow after the generous 0% offers - you didn't think they just offered the 0% money as part of their charitable works did you? That and the inevitable increase in defaulters means they need to look somewhere for their profits

Moggles_2

thriftyfiftyfive wrote: »

Just received my PO Credit card statement this morning and noticed an interest charge for a purchase added to my account. Knowing that I had not made a purchase as the card was to be used for balance transfers only, I rang the PO customer service. I was informed that they add interest if the charge for the balance transfer is not paid within the first 3 months of the account being open. I have thumbed through the T&C's, but I cannot find anything about that.

The Bank of Ireland treats BT fees as purchase transactions, so you will incur some interest, if not paid off before your introductory 0% rate expires 3 months from account opening.

Note: LloydsTsb and Royal Bank of Scotland also charge interest on BT fees.

YorkshireBoy

Moggles wrote: »

The Bank of Ireland treats BT fees as purchase transactions, so you will incur some interest, if not paid off before your introductory 0% rate expires 3 months from account opening.

Fortunately though, the order of payments seems to indicate you can repay the BT fee and halt the interest...even after the initial 3 months.

Moggles_2

marieofnie wrote: »

I will be coming to the end of a 0% balance transfer and 2.9% purchase deal with Virgin at the end of this month. This morning I received an alarming letter informing me that as of August my new interest rate would be 34.9% APR. Thinking that this must be a mistake as the variable interest rate was 16.9% when I applied for the card, I contacted them and was told that I would be charged this rate as of August or could opt out and pay a lower rate (now 29.9% not 16.9%) but have my account suspended until the balance was paid off... I would probably get a better deal from a loan shark at 34.9% but thankfully I have been able to transfer my balance to other cards.

As CJ says, hardly a day goes by without someone reporting an interest rate hike from Virgin (or MBNA, which operates the Virgin card) 34.9% APR is not uncommon.

Once your Virgin balance is paid off though, courtesy of your other credit cards, you'd be in a strong position to negotiate a rate reduction.

If not, I'd ask to be put through to the Retentions Dept. Obviously, for this to work, you have to be prepared to close the account, if you're not offered the rate you hoped for

jesselivermore

I'd like to refinance the debt I have to lower rates. I've recently built this up on overdrafts and credit cards (all at close to 20% APR) whilst I was looking for a job. I've found a new role but it's a 6 month probationary contract and I'm not being paid a full salary yet.

The problem is that my credit files show me close to my borrowing limits. I also have a CCJ, but it only shows up on my Equifax report. I have a few small black marks for missed payments in the last 12m but no serious issues like defaults.

I recently applied for an Abbey National balance transfer credit card, on the basis that a) they only use Experian and b) they're owned by Santander which hasn't had major problems throughout the credit crisis. Unfortunately they rejected me on 'credit scoring' (no further details given).

I've also applied to Natwest for a loan (APR came out slightly better at 15%) which they approved but then asked for proof of income. I had optimistically used my previous salary. So no go there.

Any ideas how I can refinance my debt? Are any credit card firms still offering generous balance transfers for someone in my position? Am I better off applying for a loan and paying some interest? Would it help if I took out any old other credit card and didn't use the balance - so I have a higher % of unused credit? Or will this hurt me?

Any advice appreciated even if anecdotal, eg "I was in a similar situation recently and this is how I solved it".

Thanks in advance!

Moggles_2

jesselivermore wrote: »

I'd like to refinance the debt I have to lower rates.... I have a few small black marks for missed payments in the last 12 months, but no serious issues like defaults.

There's a difference between late payments and missed payments.

If the former, these are viewed as negative only if you attract more than a couple in a short space of time. Even then, the effect is fairly short-lived. The records drop off your file after 36 months.

OTOH, if these payments were missed altogether, this would certainly explain your inability to get credit now. 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. Only the passing of time would help.

Moggles_2

jesselivermore wrote: »

I'd like to refinance the debt I have to lower rates. I've recently built this up on overdrafts and credit cards whilst I was looking for a job. I've found a new role, but it's a 6 month probationary contract and I'm not being paid a full salary yet.

Congratulations on finding a new job.
:beer:
You will have disrupted your credit rating temporarily of course. Lenders like stability, so best practice is to apply for credit facilities, where possible, before you move/change jobs/change banks. Being with the same employer, bank and current address for a while all help when applying for market-leading BT cards.

The problem is that my credit files show me close to my borrowing limits.

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, as I think you realise so, if you're going to apply for market-leading BT cards, it's wise to leave some headroom.

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 to make certain there's nothing else working against you

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.

YorkshireBoy

jesselivermore wrote: »

I had optimistically used my previous salary.

I think you'll find that's deception to gain a pecuniary advantage, ie fraud!

And fraud will get you a CIFAS marker on your credit file meaning you're well and truly up the creek!...and for a considerable time.

A lender only has to suspect* fraud and they'll notify the relevant fraud prevention agencies.


* You apply and sign. They approve you, subject to further checks, and request income proof (employer as well presumably?). You then refuse to provide it and pull out of the deal. From their point of view it looks a bit iffy doesn't it?