Best Balance Transfers Discussion Area

Moggles_2

Originally Posted by dhassen
I'm sure everyone's aware that variable rates are just that - variable, and the likelihood is that they will vary upwards!

Sadly, there's ample evidence on this thread alone, that posters don't always appreciate this. How else to explain the OP's comments? It's not as though this rate increase has been sprung on him/her? They've benefitted from 0% on BTs for 15 months and they're not affected until July. That's getting on for 3 months notice.

Virgin has one of the best introductory BT deals on the market but, - and this is crucially important - if you're not prepared to "ditch and switch" before the 0% rate ends, then I would steer clear of these interest-free deals altogether. Better to go for a "stable relationship" card, as Martin advises. (Please see *Best Balance Transfers*) http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

dhassen

I think 3 months notice is pretty noble anyway! lol as you say, switch and ditch, if you can't though (as happened with me) you can either complain or ride it out.... I complained and got a good response and I'm in a much better position now, because I was able to pay with the normal APR applied. I'll be getting rid soon, and be much more aware!

COOLTRIKERCHICK

i know its a lfew months away, but we are with cap one at mo with 0% until august, with what is going on with interest hikes etc, i was wondering what is the best thng to do...

try and find a another 0% transfer and transfer early.... or i still have my barclay credit card with a 6.? for life of balance ( if it is still available)

or wait until july and then see what is about..

in the mean time i am paying off as much as i can, but i know i will not be able to clear it by august...

any ideas, suggestions... would be appreciated...

( i know the advice would be general, and anything could happen between now and august with rates and acceptance etc)

Moggles_2

Originally Posted by COOLTRIKERCHICK
We are with Cap One at mo with 0% until August. With what is going on with interest hikes etc, I was wondering whether to try and find another 0% transfer and transfer early.... or I still have my Barclaycard with a 6.? for life of balance ( if it is still available)

There's no perfect solution that suits everyone. Martin's *Best Balance Transfers* article on the main site explains the pros and cons of 0% and LOB cards and how to decide.
http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards#choosing

There's no doubt a 0% BT card saves you more money and there are still plenty on offer, provided that your credit file is in good shape. Personally, I wouldn't transfer this early. You would stand to lose around 2 months of your 0% period with C1.

...or wait until July and then see what is about.

Depends when your current 0% period ends. If early August, July may be cutting things
too fine.

The time taken to process a credit card application and balance transfer request varies between card companies. The best introductory 0% deals are often heavily advertised and lenders are sometimes flooded with applications. Best practice is to allow 5-6 weeks. With luck, your application and balance transfer will be completed in 3 weeks, but better
safe than sorry

Which card is best would depend, to some extent, on the existing cards - besides C1 and Barclaycard - you have at the mo and, as you say, what deals are available.

COOLTRIKERCHICK

thanks moggles:beer:

credit file is fine, from june onwards will see what is around, and what martin is suggesting in his weekly email....

i think its because i have hear and seen sooooo much in the news lately about the credit crunch etc... and to be honest the only way it has hit us at mo is the food prices, i dont really want to be caught out with very high interest rate on a credit card...

pendo

I have just cleared a balance by moving it to a interest free card. I understood I would be charged a transfer fee, but the old card have charged me interest of £49 on a clear balance is this allowed or should I challenge them, it has never happened before.

Moggles_2

pendo wrote: »

I have just cleared a balance by moving it to an interest-free card. I understood I would be charged a transfer fee, but the old card has charged me interest of £49 on a clear balance. Is this allowed or should I challenge them? It has never happened before.

You haven't stated which old card is involved, but if you were being charged anything other than 0% interest on your previous balance, there may be some residual interest to pay.

hvac

Hi,
Does anybody know if it is possible to transfer a personal loan balance to a credit card offering 0% credit card transfers?

Moggles_2

hvac wrote: »

Does anybody know if it is possible to transfer a personal loan balance to a credit card offering 0% credit card transfers?

Not directly. What you can do is ask the 0% balance transfer card to transfer an overdraft to the card, in other words shift cash from the credit card to your bank account. A BT fee applies, but there are no other charges during the 0% period. You then have funds in your current account with which to pay off the loan.

Caution: you cannot use any old 0% BT card. A handful have this capability:

a credit card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin), Egg card or the Post Office card, will allow you to transfer cash from the card to your current account. From there you could write a cheque to pay off your loan.

Alternatively, you can use Egg Money (not to be confused with Egg card) in conjunction with any low-interest balance transfer card to move funds to your current account.

Mint periodically issues credit card cheques, which can be paid directly into your current account. Unless you already have them, this is the least satisfactory option, as cheques cannot be ordered and you never know when the next ones will turn up in the post.

Moggles_2

Is it wise to transfer a balance from a loan to a credit card, to make use of a 0% deal?

If you will have savings to pay off your credit card balance before the 0% period expires, that's great. The risk in paying off a loan this way is that you can't be sure of another 0% credit card offer with a sufficient credit limit when your current deal ends and the interest rate leaps to anything from 16.9% to 34.9% APR variable. For all we know, 0% BT deals may not be around in 12-15 months time and BT fees could have jumped to 5% or even 6% :eek:

Always bear in mind that the reason the card providers can afford to lend you money at 0% for X months is because, more often than not, customers do not clear the debt and end up paying crippling interest when the promotion period ends. This is the main way lenders claw back the cost of these promotions. If this were not the case, these 0% offers would have dried up long ago.

Also, you'll need to factor in the balance transfer fees and check the loan Ts & Cs. Some providers charge an early repayment penalty if the loan is settled in full before the scheduled date.