Best Balance Transfers Discussion Area

Vicious_Circe

I am looking for some advice as to whether I would benefit from switching to a balance transfer & spending card now that I am paying interest on my previously interest free aqua classic card. I am not looking to reduce debt so perhaps another interest free card is an option?

Your current balance £1,099.03

Indicative APR 34.95%

Typical monthly payment £38.79

Ebe_Scrooge

Vicious_Circe wrote: »

I am looking for some advice as to whether I would benefit from switching to a balance transfer & spending card now that I am paying interest on my previously interest free aqua classic card. I am not looking to reduce debt so perhaps another interest free card is an option?

Your current balance £1,099.03

Indicative APR 34.95%

Typical monthly payment £38.79

Well, paying 0% interest would be slightly better than paying nearly 35% interest, so in theory yes. Assuming you get accepted for another card. And assuming you are offered a high enough limit. And assuming the balance transfer fee is acceptable. But I would question why you are not looking to reduce your debt - that would be a sensible option to most people, even if you do it via a 0% card. Balance transfers can be a great way of getting an extended period of cheap credit, but at the end of the day, the debt has to be paid off one way or another.

Vicious_Circe

I'm not particularly educated in these matters and this was my first credit card. I had a 90% approval rating via a tool on this website for some balance transfer and spending cards but I am not sure whether I would be applying for the one, for the balance transfer, and another as a spending card or a dual card. It is very confusing for a young layperson.

I was not sure I would be able to reduce debt while also spending on a card which is needed.

Ebe_Scrooge

Card promotions generally fall into 2 categories - 0% on balance transfers, or 0% on spending, each promotional rate lasts for a given period. There are some cards that offer both promotions, but in general it's best to keep one card for one purpose - e.g. don't spend on a balance transfer card.

However - you should never assume that you'll be accepted for another card when the current promotion runs out. You should always have plans in place to pay off the remaining balance at the end of the promotion.

Your statement "spending on a card which is needed" is somewhat worrying. If you're in the position of having to rely on a credit card to pay for day-to-day essentials, without really being able to repay the loan, then you need to be looking very carefully at your budget. The Debt-Free-Wannabe board on this site would be a very good starting point. If you're spending on a card and are unable to repay, that will only lead to a downward spiral of expensive debt.

As I mentioned in my previous reply, a credit card can be a very useful tool if managed correctly, but it's not a magical pot of free money. You really need to understand how they work, and how to use them to your advantage.

Vicious_Circe

Aqua has told me this after querying a balance transfer:

'There is promotional balance transfer offer on your account with 0% APR for 6 months & Balance transfer fees of 3%. This offer is available till 18 April 2019.'

[Deleted User]

Vicious_Circe wrote: »

Aqua has told me this after querying a balance transfer:

'There is promotional balance transfer offer on your account with 0% APR for 6 months & Balance transfer fees of 3%. This offer is available till 18 April 2019.'

That won't help with any existing balance on the aqua card.

zappahey

I've just bought a motorcycle and, to my surprise, the dealer let me pay it on Amex, thus gaining a whole bunch of Avios and a companion ticket voucher :beer:

That's leaving me a balance of around £12k on the card. I have the money to clear it but I'm considering if I should go for a 0% balance transfer card instead, which leads me to two questions.

I'm assuming that I'm very unlikely to get anywhere near £12k on 0% but what would be a reasonable amount to ask for. Is there any risk of being declined simply for requesting too much?

On a more general point, applications ask for how much are my monthly credit card payments. I typically put about £1.5k through the card each month and clear it in full. So is my answer to this question £1500 or £0, as I'm not paying down a card as such?

Thanks

eskbanker

zappahey wrote: »

I'm assuming that I'm very unlikely to get anywhere near £12k on 0% but what would be a reasonable amount to ask for. Is there any risk of being declined simply for requesting too much?

The credit limits offered by lenders are completely unrelated to any figure you might mention during the application process, and are simply driven by their underwriting processes and risk algorithms, etc.

zappahey wrote: »

On a more general point, applications ask for how much are my monthly credit card payments. I typically put about £1.5k through the card each month and clear it in full. So is my answer to this question £1500 or £0, as I'm not paying down a card as such?

If it asks for your 'monthly credit card payments' and you pay £1500 a month then that seems like the answer to me, or is there something in the actual wording or phrasing that would steer you towards a different answer?

Fingerbobs

zappahey wrote: »

On a more general point, applications ask for how much are my monthly credit card payments. I typically put about £1.5k through the card each month and clear it in full. So is my answer to this question £1500 or £0, as I'm not paying down a card as such?

These questions are usually ambiguously worded for me, but typically I answer £0, because I use credit cards simply as a convenient payment method, and never carry a balance on any card and always pay in full every month (Stoozing cards excepted). My thinking is that they're interested in debt repayment commitments, rather than how much I typically spend every month, unless that is what they specifically ask for.

Tom_05

Hi there!

I've had a santander credit card for a few years and the 0% interest has just run out.
Ideally I'd just do a balance transfer.
Only problem being I moved to NYC three months ago and the bank in the UK won't let me do a balance transfer unless I'm a UK resident with evidence of a UK income.

Are there any ways around this? I really don't want to be paying the interest every month for the next few years!

Thanks!!!!!