Best Balance Transfers Discussion Area

Moggles_2

RenegMC wrote: »

Am I putting my credit score at risk by even applying to transfer the balance?

The credit reference agencies do not record credit card refusals, only credit checks. These searches are viewed as negative only if you attract too many in a short space of time. Even then, each check drops off your file after 12 months, so the effect is fairly short-lived. For more info, please see p.121 #2415 above.

CannyJock

RenegMC wrote: »

Hi,

Sorry if this is the wrong bit, but I currently have a 1000GBP credit limit on a credit card. The current balance is 833.73.

I'm currently unemployed (still looking) and barely making the minimum payments.

The card is http://www.debenhams.com/webapp/wcs/stores/servlet/CategoryDisplay?storeId=10001&catalogId=10001&langId=-1&userType=G&categoryId=66276

Would switching to virgin 0% card be the best option for me right now? What else can I do apart from the obvious (not spending anymore!, borrowing money from family/friends etc) to reduce the debt?

Thanks kindly

Your current minimum repayments are 4% of the balance, so £33.35 on £833.73?

If you transfer the balance to Virgin Money, they'll add 2.98% fee, so £24.85 bringing your balance up to £858.58. With Virgin the minimum repayment is 1% or £25, whichever is greater so basically £25.

But if it's the minimum repayments you're worried about, the lowest min repayments at the moment are with Halifax at 1% or £5, whichever is greater so basically 1%. They have a 3% fee for 0% for 13 months.

If you stay where you are, assuming you're on the typical 19.9% APR, you'll pay:



So £374.55 in payments over 13 months but pay £151.88 in interest.

If you were able to switch this to a Halifax card, you would pay:


So you would be saving £267.80 in payments over 13 months and saving £151.88 in interest, which even after you take off the £25.39 fee you're still much better off.

If you do transfer the balance of the Debenhams card, there will be residual interest, roughly the £12.53, so you would be better off doing the BT for £846.26.

Now the big but ...

You may be unlikely to qualify for a 0% card if you're unemployed. Perhaps a family member can apply for one to help you out? Risky for them maybe, but you never know.

edgar52_2

Moggles wrote: »

6.9% APR is described as the typical rate.

If memory serves, at least 66% of customers must be offered the "typical rate", otherwise it cannot be advertised as such. In other words, there are no guarantees, as I think you realise.

Also, this rate is not fixed, it's variable. This means Barclaycard reserves the right to raise the rate at any time.

Other than B'card, may I ask which four cards you have at the mo? Also, which providers you've applied to unsuccessfully.

Thanks for responding. My other cards are MBNA, Abbey, Mint and Amex (the latter is the smallest balance). I asked both Abbey and Mint to reduce my interest rate and both refused. MBNA is currently at 0% but reverts to the standard rate of 34.5 at the next statement.

Moggles_2

edgar52 wrote: »

My other cards are MBNA, Abbey, Mint and Amex (the latter is the smallest balance). I asked both Abbey and Mint to reduce my interest rate and both refused. MBNA is currently at 0% but reverts to the standard rate of 34.5% at the next statement.

I wouldn't ask MBNA to reduce your standard rates at the mo. A request to lower your rates, while a promotion is still running, is doomed to failure. Just so you know.

Usual advice is to pay off the highest rate card first, as I think you realise, so I'd pay down the debt on your MBNA card. MBNA has a reputation for regular, follow-on offers, which you can use to your advantage once your balance is paid off in full. Also, you'd be in a stronger position to negotiate a further reduction over the phone.

To maximise the 0% period, 13 months 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

ChuckleVision_2

I'm looking for a balance transfer card with no transfer fee.

6 months will do...

Any about? They all seem to have a fee. (Best one still being Play.com with a 1.5% fee)

edgar52_2

Moggles wrote: »

I wouldn't ask MBNA to reduce your standard rates at the mo. A request to lower your rates, while a promotion is still running, is doomed to failure. Just so you know.

Usual advice is to pay off the highest rate card first, as I think you realise, so I'd pay down the debt on your MBNA card. MBNA has a reputation for regular, follow-on offers, which you can use to your advantage once your balance is paid off in full. Also, you'd be in a stronger position to negotiate a further reduction over the phone.

To maximise the 0% period, 13 months 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

Sorry one more question. Is it advisable for me to try for a new card at the moment? In addition to the others I also have a Virgin card on which I have a low limit and pay off the balance each month and also three loans. I have an unblemished credit history but my rating is only average at the moment due to my high borrowing. I have reduced my available credit but when I do a quick search for offers open to me on credit expert it only comes up with a Capital One 34.5% card. Just so you know the reason for this debt is that I built a house which I am now finding it difficult to sell!

CannyJock

ChuckleVision wrote: »

I'm looking for a balance transfer card with no transfer fee.

6 months will do...

Any about? They all seem to have a fee. (Best one still being Play.com with a 1.5% fee)

Nope, none about.

You can try contacting any existing cards you have and asking them for an interest free deal to help you clear and close some other cards.

CannyJock

edgar52 wrote: »

Sorry one more question. Is it advisable for me to try for a new card at the moment? In addition to the others I also have a Virgin card on which I have a low limit and pay off the balance each month and also three loans. I have an unblemished credit history but my rating is only average at the moment due to my high borrowing. I have reduced my available credit but when I do a quick search for offers open to me on credit expert it only comes up with a Capital One 34.5% card. Just so you know the reason for this debt is that I built a house which I am now finding it difficult to sell!

If you've not made any applications or had searches on your credit report for 6 months then no harm in trying. Did you mention if you've looked at your credit report? I'd go with Moggle's recommendation on Halifax.

The credit expert recommendations aren't very reliable - they don't know about your income for one thing.

Moggles_2

ChuckleVision wrote: »

I'm looking for a balance transfer card with no transfer fee. 6 months will do. Any about? They all seem to have a fee. (Best one still being Play.com with a 1.5% fee)

Virgin launched an interest-free balance transfer credit card with no BT fee on 7 August 2009 (0% for 9 Months). Unfortunately, that one's been pulled already and there are no others at the mo.

If it's for 6 months, I'd agree that Play.com is your best bet

Moggles_2

edgar52 wrote: »

Is it advisable for me to try for a new card at the moment? In addition to the others, I also have a Virgin card on which I have a low limit and pay off the balance each month and also three loans. I have an unblemished credit history, but my rating is only average at the moment due to my high borrowing. I have reduced my available credit, but when I do a quick search for offers open to me on credit expert, it only comes up with a Capital One 34.5% card.

I wouldn't place too much reliance on Credit Expert's cc suggestions. The credit report and accompanying guidance notes are invaluable, but when it comes to additional services, bear in mind they're on lead commissions.

You mentioned in your OP that you were unable to get any transfer deals. May I ask which providers you've applied to unsuccessfully?