Best Balance Transfers Discussion Area

teezie

Hi

I have had the same credit card with HSBC since 1998 until earlier this year they changed it from Mastercard to Visa, I've just come back from holiday to find out that the new card apparently has 'foreign transaction fees' so I'm looking to switch, so thought a 0% balance transfer might be a good option? I have £1200 on it at the moment. I suppose what I'm asking is - am i likely to find a 0% balance to a card that doesn't have foreign transaction fees? (i dont have any other loans except student loan & mortgage) -does my husband's debt count to my credit score? I think I'm paranoid about being refused as I was badgered into applying for a store card about 3-4 years ago when out shopping then got turned down (uber embarrassment!)

thenudeone

teezie wrote: »

I suppose what I'm asking is - am i likely to find a 0% balance to a card that doesn't have foreign transaction fees?

You might do, but you shouldn't use it like that.

Generally, you shouldn't combine purchases and 0% BTs on the same card. Unless there is a 0% offer on purchases, you won't get ANY interest-free period on purchases if you buy things on a 0% BT card. The interest you get charged on purchases could dwarf the savings from a 0% BT.

If you can, you should always put purchases on a separate card and pay the balance in full every month.

far2812

Ive decided my intelligence must have been left behind in 2013 as I just can't make sense of this balance transfer thing.


Scenario..... my partner currently has credit cards as follows...


£11,000 on Halifax card
£5,000 on Barclaycard


He is paying a lot of interest so I am looking to move them to a 0 percent card.


I don't understand the fees. Some say 2.5 percent charge. Does this mean he has to pay this immediately when transferring to a new card!


He is not able to pay all of this off so I am looking to transfer to a 0% deal and then transfer again when the 0% runs out.


Does this make sense to anyone and could you help?


So grateful


Xx

thenudeone

The fee gets added to the new balance, so if you transfer £1000, the balance on the new card will be £1025.

The plan makes sense, but with £16k of debt already, your partner will struggle to get any more 0% offers even with a perfect payment history and above average income.
Lenders will be reluctant to offer more credit. Even though the intention is to clear down existing debt, they can't stop you using any new credit to spend even more, which would make the situation even worse, not better.

So:
1) check the credit files (there is a separate thread for that) for any errors or ommissions
2) try for one or two 0% cards
3) Transfer what you can (it doesn't have to be all of the debt if you can't get that much credit)
4) close any cleared cards to remove any temptation
5) Throw every spare penny to paying off the remaining debt which isn't at 0%, starting with the highest APR first
6) seriously assess how & why such a high level of debt has arisen, and address that issue, otherwise no 0% offer will solve the problem. See the debt-free wannabee forum for help.

grumbler

thenudeone wrote: »

The fee gets added to the new balance, so if you transfer £1000, the balance on the new card will be £1025.

It's worth adding that this is one of the reasons for BTs normally being limited to 90% of the credit limit.

lil_miss_daisy

My husband has a Barclaycard and his 0% has just ended, but he has a new offer on the same card for 0% till November. He has no other cards to transfer to/from.

Is there anything against him transferring that balance to one of my cards for a few days, then transfer it back so he can get the new Barclaycard deal? I can't see anything in any lender small print that would indicate yes or no.

Thank you.

grumbler

Some card companies (Santander IIRC) allow transfers only from your own card with another bank, but most companies don't care.

That said, is it really worth paying two sets of BF fees for getting such a short deal?

far2812

Thank you so much to thenudeone! Just what I needed and very helpful advice. I will update you on our progress thanks again

lil_miss_daisy

Thanks Grumbler, I think it will help because c. £2800 debt at 18% = £500 a year in interest. I could be mistaken mind you!

jimmyjjohn

I am new to this site, but I have just been turned down for an egg card to transfer a balance. I have an existing loan with them but have just transferred a balance to a different card.Am trying to sort out my finances at long last. I'm not sure what to do now. Is it worth me applying for another one? I checked my credit score and its good and I never miss any payments. Any advice would be appreciated.