Questions about Balance Transfers

edcoates1984

Hi Martin,

I now have several credit cards that I have used to make the most of balance transfer deals, which have now expired.

Is it worth closing these accounts down, and if I do can I then reapply for new offers with that credit card provider?

I've been quite the credit card tart and am running out of options where to transfer my balances to, because I have cards with the main providers: virgin, barclaycard, abbey already!

What do you suggest?

Many thanks,

Edward

Moggles_2

edcoates1984 wrote: »

I now have several credit cards that I have used to make the most of balance transfer deals, which have now expired. Is it worth closing these accounts down and, if I do, can I then reapply for new offers with that credit card provider?

The national average is five, so if you have five credit cards or fewer and none is maxed out, it's unlikely your credit rating or future credit limits would be harmed by keeping these cards, unless you have a lower than average annual income. That said, with each successful credit card application, your available credit will increase in relation to your income and there will come a point when you must consider closure.

I think you have to treat each credit card on its own merits. IME, some card companies (eg. Barclaycard, Virgin) have regular, existing-customer offers and Virgin will even waive BT fees sometimes, if you're prepared to negotiate over the phone. Others (eg. Abbey) reserve their best deals for new applicants.

In general, unless a card has a particular benefit, then I would close the account. By cancelling a card you can ceertainly re-apply to that provider as a 'new' customer and take advantage of any introductory deals on offer.

Another good reason for phoning customer services to cancel an unused card is that occasionally you're offered an incentive to stay;)

Moggles_2

edcoates1984 wrote: »

I've been quite the credit card tart and am running out of options where to transfer my balances to, because I have cards with the main providers: Virgin, Barclaycard, Abbey already. What do you suggest?

Well, that still leaves quite a few possibilities.

13 months at 0% is currently available to new customers from Halifax on balance transfers made in the first 90 days. There's a 3% BT fee.
IME and from feedback here, credit limits are generous and the minimum monthly payment is just 1% of the balance shifted

http://www.halifax.co.uk/creditcards/pluscard136.asp

shoppaholic_returns

Hi All, have just had my application for a HSBC card agreed with a £3000 credit limit,card has 0% BT for 15 months whats the max amount I can transfer? Is there a percentage of the credit limit or is it up to £3000, as I want to spread a payment for something over the 15 months,many thanks

Moggles_2

shoppaholic_returns wrote: »

Have just had my application for a HSBC card agreed with a £3000 credit limit. Card has 0% BT for 15 months. What's the max amount I can transfer? Is there a percentage of the credit limit or is it up to £3000, as I want to spread a payment for something over the 15 months?

HSBC will allow you to transfer up to 95% of your credit limit

shoppaholic_returns

Thanks for that,Moggles!!

c0rneL

can someone answer this question:
Will the card I am transferring balance from affected in any way by the balance transfer?
- can they see that I am shifting the balance to another credit card?

Moggles_2

c0rneL wrote: »

Will the card I am transferring balance from affected in any way by the balance transfer? Can they see that I am shifting the balance to another credit card?

No, I doubt whether cc providers can distinguish BACS payments made by other card companies from those of their customers

koru

Isn't it misleading to say (as the current version of the article does) that the MBNA 1.9% interest card is equivalent to a 1% BT fee/ 0% interest?

You are not comparing like with like, because you assume the MBNA card is paid off smoothly in 12 monthly instalments, but with a zero interest card there would be no point paying any more than the minimum payments until the end of the zero interest period, so you could be earning interest on this money instead. The real equivalent BT fee would be much higher than 1%. See my posts 2485 and 2486 in the main Balance Transfers discussion thread.

I am posting this here to bring this point to the attention of MSE.

Winchester_2

Hi

Random question - my partner can't get any new credit card and we need to transfer his debt to a 0% balance transfer. Can I apply for a card in both names and transfer his debt that way?

Cheers