Best Balance Transfers Discussion Area

steelercaz13

Hi all

Right, at a 'watershed' moment and after a bit of help! In the next 6 months or so will be forced into position to buy a house (rental out of the question for various reasons), and will need a mortgage. We've been approved by Yorkshire Bank for up to 100k, but would only spend 80k tops, preferably less (we just had one sale for 50k fall through due to problem with house, and YB already done credit checks). However, I have serious credit card debt, and want to reduce my monthly payments. I just just about to do an application for a debt consolidation Tesco loan at typical 7.9%, but after reading some posts on here worried I'd get turned down because of my high total unsecured debt...

CURRENT SITUATION
- Egg card: balance=3670.02 at 19.9%, limit is 4350
- Capital 1 card: balance=3486.40 at 18.3%, limit is 4000
- MBNA BMI card: 3039.50 at 24.9%, limit is 3,500 (reduced this myself a few months ago in preparation for mortgage application)
- Citicard: 1872.68 at 22.5%, limit is 2174.63
- Arranged overdraft on Halifax current account of 658.33 at 19.5%, limit is 1000

I earn 28k gross, which works out at 1750 per month.

My credit rating is good - it was 2 marks off 'excellent' on Equifax a few months ago, but since missed 1 credit card payment as part of the transfer of direct debits to my new current account, and 1 store card payment on a Next card when the first statement never turned up. (Balance on that is zero now, only used it for an account opening deal - ooh, should I close it??)

- Other fixed monthly commitment = 200ish per month

PLAN
- As I mentioned above, I was about to try to apply for a Tesco debt consolidation loan of 12,500 to cover the total (after this month's final minimum payment goes out), but after reading info I'm really scared I'll get turned down, and be forced to consider credit card balance transfers again - and since we had the mortgage credit check last week, worried about then already having had 2 searches
- I know you guys know these things pretty much inside out - do we think I would be likely to get a loan? Or would I be better trying for balance transfer card, and if so what credit limit is likely to be accepted?


ANY help and guidance very much appreciated!!

steve3502

Moggles wrote: »

May I ask which credit card is involved and what rate of interest you're charged by your current provider?

That's right.

No experience of Moneybookers personally, but if you requested a transfer of funds from a credit card to your Moneybookers account, the transaction would not be classed as a purchase, unfortunately.

This is with Barclaycard I think its about 17.9% APR. I'm not looking at doing a balance transfer with this card, I pay the amount off each month on this card.

I have a second card that I use for general house hold purchases, I will pay this off at the end of the year as I do not wish to pay the transfer fees. However if I can get a new card at the end of the year for interest free purchases and request the money to moneybookers and then use that money to pay off the old card.

Is this possible?

Thanks

gordylad

was offered 10k with capital one and 8k with Virgin.

Moggles_2

steelercaz13 wrote: »

I have serious credit card debt and want to reduce my monthly payments. I'm just about to do an application for a debt consolidation Tesco loan at typical 7.9%

Caution: you would be converting unsecured borrowing to secured borrowing and your property would be at risk if you failed to make payments.

Although a consolidation loan seems easier with just one monthly payment, they are normally more costly in the long run and unless you address the problem that got you into debt in the first place, you'll just end up in deeper.

I would stop spending on the cards, if you haven't already, and concentrate on paying as much as possible each month off the card with the highest APR. Clearing these debts ASAP will reduce the interest you pay and you'll be building a better credit history in the process. You'll then be in a position to apply for balance transfer cards.

Your post raises some other issues and you may want to post again on the *Debt-Free Wannabe* board. You'll get lots of advice and support there from users who have faced similar choices.

http://forums.moneysavingexpert.com/forumdisplay.html?f=76

Moggles_2

steve3502 wrote: »

If I can get a new card at the end of the year for interest-free purchases and request the money to Moneybookers and then use that money to pay off the old card. Is this possible?

It's possible, but it wouldn't be interest-free.

if you requested a transfer of funds from a credit card to your Moneybookers account, the transaction would not be classed as a purchase. It would be treated as a cash advance and you'd be charged cash withdrawal rates.

minus28

Hi Folks

Looking for some advice. Debts currently totalling 8000 and looking to start reducing that rather than paying the excess interest rates. I'm considering something like the barclaycard platinum or simplicity card rather than a loan. My only concern is not being able to get a sufficient credit limit on a card to cover the outstanding amount. Does anyone know what the limit barclaycard offer? Would people advise against getting a card and suggest a loan instead.
If for example they only offered 5000, would I accept that and apply for another card of similar ilk? Sorry for all the questions, just find it so confusing.
Would really appreciate some advice as my knowledge with best deals/fianaces is limited. Thank you

Moggles_2

minus28 wrote: »

Debts currently totalling £8000 and looking to start reducing that, rather than paying the excess interest rates. I'm considering something like the Barclaycard platinum or simplicity card.

A life-of-balance card charges a fixed interest rate for the life of the balance(s) transferred. With Barclaycard Simplicity, your standard APR (currently 6.8% typical) is subject to credit status. If memory serves, at least 66% of customers must be offered the "typical rate", otherwise it cannot be advertised as such. In other words, a third of successful applicants do not get the advertised rate. Also, this rate is not fixed, it's variable. This means B'card reserves the right to raise the rate at any time.

My only concern is not being able to get a sufficient credit limit on a card to cover the outstanding amount. Does anyone know what the limit Barclaycard offer?

Please note: balance transfers at promotional rates are restricted to £5,000 or 90% of your credit limit, whichever is lower.

To help you further, we would need to know which credit cards you have at the mo or have held recently, also who you bank with.

minus28

Moggles wrote: »

A life-of-balance card charges a fixed interest rate for the life of the balance(s) transferred. With Barclaycard Simplicity, your standard APR (currently 6.8% typical) is subject to credit status. If memory serves, at least 66% of customers must be offered the "typical rate", otherwise it cannot be advertised as such. In other words, a third of successful applicants do not get the advertised rate. Also, this rate is not fixed, it's variable. This means B'card reserves the right to raise the rate at any time.
Please note: balance transfers at promotional rates are restricted to £5,000 or 90% of your credit limit, whichever is lower.

To help you further, we would need to know which credit cards you have at the mo or have held recently, also who you bank with.

Thank you very much for the reply.

Credit cards I have....virgin (5000 balance)
John lewis pertnership card (800 balance)

Bank with abbey, currently 1400 overdrawn
Previously banked with halifax (1300 outstanding).

Not in the best shape of finances, and desperate to get myself back on track.

Any suggestions? thanks again for the info on barclaycard

Moggles_2

minus28 wrote: »

Credit cards I have Virgin (£5000 balance) John Lewis Partnership card (£800 balance). Bank with Abbey, currently £1400 overdrawn. Previously banked with Halifax (£1300 outstanding).

As you know, overdrafts are repayable on demand. Credit card debt, on the other hand, is not. Please be aware that potential lenders will pay more attention to overdraft history, because it's known that a similar level of debt on credit cards only requires a 2% to 3% minimum monthly payment and cannot be called in. As you no longer bank with Halifax, I'd clear that overdraft ASAP.

To maximise the 0% period, you'd get until 1 November2010 on BTs made before January 2010 with Egg. A 3% BT fee applies.

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

steve3502

Moggles wrote: »

It's possible, but it wouldn't be interest-free.

if you requested a transfer of funds from a credit card to your Moneybookers account, the transaction would not be classed as a purchase. It would be treated as a cash advance and you'd be charged cash withdrawal rates.

I have transfered small amounts through moneybookers on my credit card with out incurring any cash with drawl fees?