Best Balance Transfers Discussion Area

Moggles_2

rachmarkdan wrote: »

I felt the need to warn people about MBNA credit cards. I applied for one last year with a 1 year 0% balance transfer. The standard rate at the time was about 12% APR. I recently received a letter stating that as of September my new rate would go up to 24% APR. As I have been turned down recently for another card, my debt would probably have to stay with them and would get charged the much higher rate. However, after half an hour on the phone I managed to speak to someone who knocked it back down to a more manageable 15% ... I just wonder how many people they do this to who don't complain and take it for granted that that's what they have to pay?

Credit card companies are not there to help you and me. They're there to make money.

You don't mention which lender turned you down recently but if, at the end of your introductory 0% period, you were to shift any remaining debt to another card, you would be in a better position to negotiate with MBNA. Attracting new business is expensive and most providers prefer to retain existing customers. Once your balance is zero, the bank may then offer you a balance transfer at a promotional rate

lcgoodac

Im a student with a natwest student credit card. I currently owe about £480 on it and i just don't know what to do next! I don't have a student loan so im quite fortunate that this is my only debt. Im really confused by the whole balance transfer thing so any help would be much appreciated!

Thanks Lucy

Moggles_2

lcgoodac wrote: »

I'm a student with a Natwest student credit card. I currently owe about £480 on it and I just don't know what to do next! I don't have a student loan so I'm quite fortunate that this is my only debt. I'm really confused by the whole balance transfer thing, so any help would be much appreciated!

If you're confused about balance transfers, the best place to start is:
http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

Then come back here, if you have specific questions.

Meanwhile, I would concentrate on reducing your expenses as much as possible each month. Clearing the debt ASAP will reduce the interest you pay and you'll be building a better credit history in the process.

JimmyTheWig

lcgoodac wrote: »

Im a student with a natwest student credit card. I currently owe about £480 on it and i just don't know what to do next! I don't have a student loan so im quite fortunate that this is my only debt. Im really confused by the whole balance transfer thing so any help would be much appreciated!

Agree with Moggles that Martin's article is a good place to start.
My gut reaction is that you should take out a loan from the Student Loan Company. The interest rate on that should be lower than the interest rate you would pay on a life of balance credit card, and will stay low for the life of it's balance.
Take a loan for the full amount. Use £480 to pay off your credit card. Put the rest of it in a high interest savings account.

Again, as Moggles said, try to reduce your spending and do a budget so you don't slip back into the trap that left you £480 in debt.

Your situation goes quite a way outside the scope of balance transfers (though I can see why you started here) so I'd be tempted to say start a new thread if you've got further questions.

roberic

sammy452 wrote: »

Hi
Am new to the site and needed some advice.
I have a barclaycard with £3500 on it (limit £5600) and Halifax with £3800 on it (limit £7900). I am paying 26.75% interest on Halifax so really want to get rid of this one. Spoke to Barclaycard about tranferring Halifax card at 6.9% life of balance but will only increase limit to £7000. Barclaycard suggested transferring all monies to Halifax and then transferring back to Barclaycard to take advantage of 6.9% for total debt. This sounds to good to be true and wondered whether I will come unstuck down the line if I take this route?
I am a housewife so have no big income, therefore can't apply for other cards as far as I am aware?
Any advice would be gratefully appreciated.
Thank you.

Having read Martin's recent article on this option :

"Barclaycard will allow most existing customers to shift debts to it from other credit cards at 6.9%, and unlike its new customer offer, there's no fee charged. In practical terms it pays off other credit or store cards for you, so you owe it the money instead".

I have been to the Barclaycard website this morning and now find they charge existing customers a 2.5% fee for this facility.

Moggles_2

roberic wrote: »

Having read Martin's recent article "Barclaycard will allow most existing customers to shift debts to it from other credit cards at 6.9% ... etc., I have been to the Barclaycard website this morning and now find they charge existing customers a 2.5% fee for this facility.

That's my understanding as well.

Btw, for those looking for fee-free transfers, Barclaycard Platinum with long term balance transfer offers new customers 6.5% for the life of the balance(s) transferred and there's no handling charge

Caution: B'card operates a rate-for-risk policy, so it's important to consider first whether you’ve a realistic chance of being accepted.

Promsan

Now then,

As a pair of parent students with a pair of little "mini-me"s, we habitually have to use my "student" credit card just to survive (despite being frugal and that... most of the time).

My Bank - The Royal Bank of Loveliness - has thoughtfully phoned me up to offer a loan to clear my tumescent Visa balance.
The enchanting young ingenue on the phone befuddled me with her attempts at trying to extrapolate my last minimum payment and my last payment far into the future to compare how much I'd save if I took out a 5-year loan; I reminded her that her masters are not the only loan providers; and that the minimum payments would reduce as they were made over that 5 years... but I took her point.

Maybe it would be best to clear my £3,200-ish credit card debt with a loan.
I went to:
http://www.moneybackbank.co.uk/loans/index.asp?page=loan-calculator&borrowamount=3200&loanterm=60&protection=
...and got an affordable £70 a month without PPI over 5 years... BUT I couldn't find any 0% balance transfers for students on any of those listed on the M.S.E. infopage on the topic.

So is there a "Best Balance Transfer for Students"; or are you persona non grata as far as the Armitage goes?

Any thoughts?

P.S.
(Armitage Shank - Bank... I made that up, aren't I clever mother!)

JimmyTheWig

Promsan wrote: »

So is there a "Best Balance Transfer for Students"; or are you persona non grata as far as the Armitage goes?

I would have thought it would depend on your income.

DB10

Hi all, some assistance required please.

I have 11k on an egg card which will run out of it 0% period in October. Ideally I'd like to move this to once card but I'd say I'll be luck to get a credit limit that high so may have to settle for less.

Are there any cards you'd suggest? I was thinking of Virgin or the MBNA Platinum cards.

I had also thought of a loan but the monthly repayments are going to be pretty high so would prefer the card route.

My salary is around 50k

Moggles_2

DB10 wrote: »

I have 11k on an Egg card which will run out of its 0% period in October. Ideally I'd like to move this to one card, but I'd say I'll be lucky to get a credit limit that high, so may have to settle for less. Are there any cards you'd suggest? I was thinking of Virgin or the MBNA Platinum cards. My salary is around 50k.

It's not an exact science of course but, judging from the posts on here, you're more likely to get a generous credit limit with Virgin/MBNA, than some lenders I could name.

To maximise the 0% period, 15 months is currently available to new customers from Virgin. There's a 2.98% handling charge.

http://uk.virginmoney.com/credit-card-v3/