Best Balance Transfers Discussion Area

sfax

I have a mix of credit cards, most of them used for surfing 0% BT rates to provide cheaper finance than is available with a short term loan. I am considering whether or not to close an existing CC account before applying for a new account.
I have the following:

1. barclaycard balance £0, £9,000 credit limit
2. second Barclaycard account, 0% BT, balance £3,000, limit £5,250
3. HBOS card, 0% for 20 months BT, balance £6,000, limit £6,500
4. HOF store card, balance £0, limit £750
5. Halifax cashback CC, paid off in full every month, limit £6,000 (I requested that this was reduced from £12,000 to aid my BT activity), average monthly balance of £1,500. I know this monthly balance doesn't help but I want to keep this card as I've made well over £1,000 in cashback and it's free money

I have no late payments, addresses are up to date and I had an experian score of 999 a year ago but I think this has gone down now because of 0% BT recent card surfing.

My current thinking is to ask Barclaycard for a new 0% BT rate. They'll say no, I'll say I'll close my account then, they may then give me a 0% BT rate, or they may just close it.
My questions are as follows:

1. If they close it over the phone, can I call back the next day and change my mind and get the account re-opened? This is a call my bluff situation. I don't really want to close this account as it has been open since 2005 and they do have new BT offers regularly. I tried this once with Virgin and they just closed my account without offering me any new rates.

2. Is it better for my credit score to have this £9,000 of available credit sitting there unused or should I close it if I want to open a new BT credit card? I have read two different schools of thought on this: One says close it to reduce the amount of credit you have available to you; The other says keep it open because your actual debt to available debt ratio is reduced. Hence why the detailed figures are included above.

3. Is the HOF card, which rarely gets used and is always paid off a full an issue or is it too low a limit to matter?

Any advice, opinions, thoughts greatly appreciated.

sfax

Hector67 wrote: »

I'm looking for some advice on whether to risk applying for a 0% balance transfer.

I have reduced my overall credit card debt by around £10k in a year (Barclaycard down to £0 and closed down Amex card once paid off) however I've still got £9k to clear from Virgin card and I got rate jacked so paying 25.9% on this balance which means around £200 in interest every month.

I'm wary of applying for a balance transfer because of a 'Fair' credit rating via Experian which ironically contains no account information (for which I could be being marked down, despite now having 'available credit to the tune of over £8-9K) I also asked Virgin to hold the APR at its current rate and wonder if I go for a balance transfer application I will be penalised, wondering if it's worth bothering at all and if I should just swallow it.

I've read so many different things about how your credit scoring works and to be honest even after downloading it can't really understand it fully. I'm on the electoral roll for sure but it's not even picked that up!

Any advice from anyone on the above most welcome!

Do you mean you have your credit score or your credit report? Your CRA score should make it clear why you are being marked down. If you are on the electoral roll and it has been published since you notified them (check with your local council), your credit reports should show this soon after. If your report doesn't show the address you are applying with as your current address, this is a big negative factor. I would get this sorted before applying for anything.

blitzboy

sfax wrote: »

I have a mix of credit cards, most of them used for surfing 0% BT rates to provide cheaper finance than is available with a short term loan. I am considering whether or not to close an existing CC account before applying for a new account.
I have the following:

1. barclaycard balance £0, £9,000 credit limit
2. second Barclaycard account, 0% BT, balance £3,000, limit £5,250
3. HBOS card, 0% for 20 months BT, balance £6,000, limit £6,500
4. HOF store card, balance £0, limit £750
5. Halifax cashback CC, paid off in full every month, limit £6,000 (I requested that this was reduced from £12,000 to aid my BT activity), average monthly balance of £1,500. I know this monthly balance doesn't help but I want to keep this card as I've made well over £1,000 in cashback and it's free money

I have no late payments, addresses are up to date and I had an experian score of 999 a year ago but I think this has gone down now because of 0% BT recent card surfing.

My current thinking is to ask Barclaycard for a new 0% BT rate. They'll say no, I'll say I'll close my account then, they may then give me a 0% BT rate, or they may just close it.
My questions are as follows:

1. If they close it over the phone, can I call back the next day and change my mind and get the account re-opened? This is a call my bluff situation. I don't really want to close this account as it has been open since 2005 and they do have new BT offers regularly. I tried this once with Virgin and they just closed my account without offering me any new rates.

2. Is it better for my credit score to have this £9,000 of available credit sitting there unused or should I close it if I want to open a new BT credit card? I have read two different schools of thought on this: One says close it to reduce the amount of credit you have available to you; The other says keep it open because your actual debt to available debt ratio is reduced. Hence why the detailed figures are included above.

3. Is the HOF card, which rarely gets used and is always paid off a full an issue or is it too low a limit to matter?

Any advice, opinions, thoughts greatly appreciated.

I think what is more likely to happen is that they will say 'yes, no problem'. Barclaycard are by far the best i've experienced when it comes to existing customer offers and have always had a 6.9% for life transfer available to me as well as various 0% deals.

The 0% deals are usually 6 or 12 months though so not as good as a new card, but it avoids the need for new searches etc.

sfax

blitzboy wrote: »

I think what is more likely to happen is that they will say 'yes, no problem'. Barclaycard are by far the best i've experienced when it comes to existing customer offers and have always had a 6.9% for life transfer available to me as well as various 0% deals.

The 0% deals are usually 6 or 12 months though so not as good as a new card, but it avoids the need for new searches etc.

They weren't able to do anything even when I went through to the loyalty department after I said I wanted to close my account. They seem to have changed their tact recently. Perhaps it's because there is an existing 0% offer on this account, but it's only until March 2013 which is useless for me (2.9% handling fee over 6 months is 10.5% APR compared with their new customer offer of 2.8% handling fee and 23 months at 0% interest => 2.8% APR).

What I reluctantly agreed to do for now is to up the limit on one account to £12,500 and close the other account (keeping the account with the longest 0% BT period). This is OK but still only another 9 months at 0% int (equivalent to 6.9% APR). This will also mean my credit report shows one less account and potentially an improved debt to limit ratio although I'm still not sure on exactly how lenders use this information.

Will test the water when my credit reports are all up to date with these new changes and get a score and apply for a new 0% BT CC - probably Tesco.

sfax

Incidentally, in case you're interested, the reason I always make an APR comparison by considering the balance transfer fee as interest, is that I use balance transfers in lieu of loans for purchases.

With the current offers available you can get the equivalent of an APR of 2.8% over 23 months and no loan rates come close to that. If you could get the same deal again in 23 months time you'd be paying the equivalent of 2.1% APR over 46 months (assuming you have paid off 1/2 the balance after 23 months: e.g. £10,000 "loan" initial 2.8% handling fee £280, second handling fee £140, total fees £420, total cost of borrowing over 46 months is £420, same as a £10,000 loan for 46 months at 2.1% APR)

ianeck

I have been helping a retired relation tackle his credit card debts. He had been to his local NatWest (his bank for sixty years) but they were not willing to help him and instead sold him house insurance and their plus account. Neither of which were at all relevant given his £300/mth interest bill.

Just over 12mths ago we were able to get him a 0% BT deal with Virgin. This has been a great help and over the 0% period he has, for the first time, been able to pay down a good chunk of his debt thanks to the removal of the interest burden. It is now however time to find a new deal before the 28% kicks in next month!

Barclays (at the top of the list) seemed the best and his application was immediately accepted. The problem that has come to light however is that Barclays have a minimum payment clause of 2.25% per month. This is over twice the normal 1%.

I guess this is good if you want to focus and pay down the 0% credit card debt but not if you want to pay down other interest charging debts first.

Depending on your circumstances the Barclays offer - which on the surface seems the most competitive may in fact not be.

So check the small print.

Ian.

41_and_i_know_it

Got Halifax Clarity Card July, now got tesco credit card which I have transferred £600 for a transfer fee of £17.94 (2.8%). I have until 8/7/14 to pay £617.94 back by. Also 6 mths interest free purchases til 8/5/13, credit card sent out on 8th but not yet here but pin is. I just spoke to a human being when I rang them about log in problems and this is because the card is not activated, there's me panicking because I'm techno-terrified. I am keeping the clarity card to purchase and balance transfer and divide the balance on tesco card by amount of payments till 8/7/14. I know this is not healthy to be so happy but I have been bankrupt and learnt a very valuable lesson, credit is to respected at all costs and can be recalled at any minute. Only downside customer service takes ages to answer but it is 0845 number and after 22mths 0% deal interest rate 20%:eek: which by then I would've won the lottery or equivalent lol:j

Hector67

sfax wrote: »

Do you mean you have your credit score or your credit report? Your CRA score should make it clear why you are being marked down. If you are on the electoral roll and it has been published since you notified them (check with your local council), your credit reports should show this soon after. If your report doesn't show the address you are applying with as your current address, this is a big negative factor. I would get this sorted before applying for anything.

Thanks for the advice, I've been on the electoral roll for over 3 years and the CRA still has my address from 3 years ago. And no account history. So bit of a drag. I wil contact my council.

Hector67

Because I opted out of the edited register when I renewed by electoral roll (for which I have been registered for the past 3 years) it means that these details mean that my information is therefore not shared with any credit reference agencies.

I ticked it because I didn't want to be contacted by marketing people but in fact I actually have ended up having to write a letter to the council to amend the form and now opt back into the edited register!

Annoying!

justinjames00

Hi,
I'm an editor and I have to buy a laptop with extremely hight specs for work. The best value card tat I can find is the Fluid card that was advertised on this site. I called MBNA bank and spoke to them and their services just sound too good to be true.

Please could some one help me with advice regarding the best way buy something to the excess of £3700.00 on credit.
Thanks

Justin