Best Balance Transfers Discussion Area

Moggles_2

dumbwithmoney wrote: »

I've just read one of the many fantastic articles and it's recommended that I transfer my bank overdraft onto a 0% credit card. I already have a Halifax One card with £1800 on it. Would it be best to put it all on there? (The limit is enough for this).

In a word, no. A few rather special cards will allow you to transfer an overdraft to them, (in other words, transfer cash from the credit card to your current account), at balance transfer rates:

a card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin), Egg card or the Post Office card

alternatively, you can use Egg Money (not to be confused with the Egg card) in conjunction with any 0% or low-rate balance transfer card.

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.
Caution: other lenders (eg. Barclaycard, Halifax) issue credit card cheques from time to time. These can be used to settle bills, but if you paid one into your bank account, you'd be charged for a cash withdrawal - not recommended, not unless you have money to burn.:eek:

Which of the above is best depends to some extent on which cards you have at the mo. To maximise the 0% period, 15 months is currently available to new customers from Virgin and you'd get 14 months with Egg card. A 3 % BT fee applies.

fingerman

Just applied for a MINT and my credit rating is pretty poor - got a £4200 limit

Thanks for advice in this thread:T

Moggles_2

mira wrote: »

Would it be possible to do a balance transfer from my credit card to my partner's credit card?

I have some credit card debt that my partner is willing to pay on his new Abbey credit card by doing the balance transfer to take advantage of the 0% for 6 months. Does anyone know if the banks normally accept that?

Your partner can switch credit card balances from family, friends or Dave down the pub.

Please bear in mind though, the person whose card the balance is shifted to, becomes soley liable for the debt. If you were to fall out, he couldn't ask the card company to charge you for any remaining balance.

From the lender's perspective, it's not a problem. If he requests the transfer by phone, he may be asked for the name on the card, but this is purely an additional verification check. At the end of the day, the card company is after his business. They're not really interested in knowing who ran up the debt, as long as he, their customer, pays up on time each month!

GeorgeUK

Mira

One thing i would add to Moggles' advice is you may need to be careful about who the card provider is (as you would with doing a BT between your own accounts).

eg You couldn't transfer a balance between Virgin and Alliance and Leicester as they are both issued by MBNA. This table keeps me right when i do it.

http://www.stoozing.com/cards.htm

GeorgeUK

Hackney

When you do a BT for the 800, there are some things you need to keep in mind.

1. Who the card issuer is - see my post above.
2. Credit checks - you can have about 3 credit checks in a 6 month period before your credit score is affected. If you are turned down for credit, do not just keep applying to other places. It may be that the credit agencies (such as experian) hold the wrong information on you or you may not be on the electoral roll.
3. You can only transfer approx 95% of your limit. This is to make sure there is room for their BT fee.
4. Most places now charge a BT fee (approx 3%)
5. Some places will charge you interest on the fee (but not the amount transferred)
6. As you say, you should NEVER purchase anything with a card you have used for a BT.
7. If you set up a DD to pay monthly do not assume it is paid - check to make sure as any missed payment will result in you losing the 0% rate and the standard APR will be charged. Sometimes you can ask them to reinstate the 0% as you made a mistake, but this is at their discretion.
8. A 0% card does not mean you do not need to pay anything. You will not be charged interest, but you will still need to make at least a minimum payment each month.

Moggles_2

I would add one more tip to George's comprehensive checklist:

Whether you sign & post a credit agreement or "sign" online electronically, make sure you keep a copy of the Ts & Cs somewhere safe. It's important to be able to check what you've signed up to

neilyboy

i have recently transferred to the virgin 0% card for 15 months but I am still paying an ammount every month on interest.can anyone tell me if these cards are truly "interest free" for the term.

YorkshireBoy

neilyboy wrote: »

i have recently transferred to the virgin 0% card for 15 months but I am still paying an ammount every month on interest.can anyone tell me if these cards are truly "interest free" for the term.

How recent is "recently"? And have you made any cash withdrawals or purchases on the card...or paid late/missed a payment?

neilyboy

YorkshireBoy wrote: »

How recent is "recently"? And have you made any cash withdrawals or purchases on the card...or paid late/missed a payment?

I have only had the card for 3 months and missed the 1st months payment whilst away on holiday

no cash withdrawals or purchases made on the card either

YorkshireBoy

neilyboy wrote: »

I have only had the card for 3 months and missed the 1st months payment whilst away on holiday

They've withdrawn your promotional rate, and placed you on the standard rate, because you've breached your agreement (see condition 2c of your T&C's).

A phone call to customer loyalty on 0800 783 1116 may get it reinstated, but you're going to have to plead!

Otherwise, shift the debt elsewhere and resolve to take more care next time.

Good luck.