Best Balance Transfers Discussion Area

molley

Willem-de-Blois wrote: »

Perhaps someone can help.

I am about to max out my Halifax CC that I've had since I was a student. It will soon have the maximum balance of £3000. The minimum monthly payments is now around £50.

At the same time, I am close to maxing out my overdraft at £3000. This costs me £55 per month to have.

I spoke to a Christians Against Poverty volunteer and he advised me to shift my credit card balance to a temporary 0% card and to use this breathing room to reduce my overdraft with the possibility to move to another 0% CC to buy more time if need be.

The thing is that these transfers cost 3% of the transfered debt which in my case, would be £900. This is my take home pay per month and half of this goes on rent and bills.

What would be the best card to transfer £3000 to which doesn't have a £900 fee to do so?

How do you work out the BT fees to be £900 3% of £3000 is £90

shrewsyj

Hi there

I took out a career development loan to pay for an MA and am now on a low income and finding it hard to make the repayments. I was thinking about a super balance transfer to a 0% credit card which would buy me a bit of flexibility and reduce the overall interest payable, and as far as I can see, this is possible providing I pass the credit check. I hope I do, as the loan totals £7.5k and this seems a lot to ask for on a credit card.

My problem is that I don't fully understand my loan account - there's a 'current account' and a 'career development loan' account both under the same A/C no and sort code - if I make a super balance transfer to this account, will it actually clear my loan debt?

Very confused, and grateful for any help!

Cheers

martinseo

New customer offers are the cheapest option to cut the cost of debt, but often those most in need of cheaper credit don't get accepted.
However, don't automatically assume you'll fail on application - there are techniques you can try and special cards you can apply for even if you normally struggle to get a yes - read 'Bad Credit' Credit Cards.

JUSTMYLUCK_3

Could anyone help?

I have outstanding £1800 on mbna at a rate of 34%

They have just offered me 0% on money transfers to my current account for 13months if I transfered £2000 to my current account and then straight away using that money paid off £1800 would I end up with £2000 only on interest free or not, can't get my head round if it would work or not.

Any help appreciated hope you understand what I'm trying to do.

Thanks in advance

Justmyluck

chris-j

Transfer but don't pay the £1800 until the transfer and fee appears on your statement. Cards now generally apply payments to most expensive debt first BUT the determination is usually based on 'Statemented' transactions.
If you don't wait you are likely to find that you transfer £2000, get charged £80 for transfer fee, pay it off too quick and end up still owing the interest bearing money.
As you are paying interest anyway, waiting for statement should have minimal impact.
Suggest factoring in the £80 fee and around £60 in interest as well, MBNA might give 0% on the transfer but they do charge interest on the transfer fee.

chris-j

Willem-de-Blois wrote: »

Perhaps someone can help.

I am about to max out my Halifax CC that I've had since I was a student. It will soon have the maximum balance of £3000. The minimum monthly payments is now around £50.

At the same time, I am close to maxing out my overdraft at £3000. This costs me £55 per month to have.

I spoke to a Christians Against Poverty volunteer and he advised me to shift my credit card balance to a temporary 0% card and to use this breathing room to reduce my overdraft with the possibility to move to another 0% CC to buy more time if need be.

The thing is that these transfers cost 3% of the transfered debt which in my case, would be £900. This is my take home pay per month and half of this goes on rent and bills.

What would be the best card to transfer £3000 to which doesn't have a £900 fee to do so?

If you owe £6000 then transfer fees would be £180 in total at 3% fee. Problem you may have is that most CCs only do transfers to other cards, not current accounts. Once you are a customer some may occasionally offer transfer to bank account (Barclaycard and MBNA) but this is not by any means a certainty.
You also suggest that you are having trouble meeting current payment and overdraft being run as an ongoing debt.
Sounds like you should speak to bank and try to convert overdraft to loan.

thenudeone

chris-j wrote: »

Transfer but don't pay the £1800 until the transfer and fee appears on your statement.

Don't agree with the second bit at all.

chris-j wrote: »

Cards now generally apply payments to most expensive debt first BUT the determination is usually based on 'Statemented' transactions.

Even if it does, the existing balance being charged at 34% is already "statemented" so it will be paid off the minute the £2000 is paid back to the account. There is no reason to wait. In fact, the quicker it's done the better because the whole process can be repeated again and again (as long as the 0% offer is still open) so that more and more of the balance is now at 0%

chris-j wrote: »

If you don't wait you are likely to find that you transfer £2000, get charged £80 for transfer fee, pay it off too quick and end up still owing the interest bearing money.

There is no chance of that happening. A statemented interest bearing balance will ALWAYS be paid off before a 0% balance.

But the OP needs to use the 0% offer as breathing space to clear as much of the debt as possible, not as a means of spending more because he's paying less in interest.

homebrl

If s/he has a good credit history and is in a position to apply for a 0% balance transfer card, I would go for it. Even with a 3% handling fee, the new card would save money over the year.

kingwheeler

Hi,

I am thinking of getting the Capital One balance card as my credit rating isn't that great.

But recently I got a Capital One card (the one for people with poor credit). I can't find anything written anywhere, but I'm presuming as I'm already a Capital One customer, I can't get the 0% transfer deal is that right?

What about good old fashioned ringing them up to see if they can do me any kind of a deal? Or does that kinda thing not work with credit card companies?

podulator

Hi - Am trying to be smart by using the 0% balance transfer offers; took out the recommended Halifax '0% for 22 months with 3.5% fee' card... I'm lucky to have a salary (a fair bit) higher than the £20k asked for and a great credit rating.. but have only been given a £500 credit limit - pointless for transferring a balance?

Apparently because I'm a new customer (which is who it says its aimed at?) I have to manage my card for 6 months before they can consider increasing it. Feels like, given my awareness of available credit elsewhere, this is a misleading offer - more like 16 months..?

Anyone got a view? Thx