Questions about Balance Transfers

bankrupt2

My soft search showed up three times on my credit report. Trouble is this site can not find me to confirm my identity. How come experien know me but your site for eligibility calculator does not. I have been trying for months to get a balance transfer but cant do soft search. Please help.

Wilson87j

Hi,
I'm new to the forums. I've got a very account which has a about £1600 on it and I've come to the end of my "buy now, pay later" 0% agreement. At first I was under the impression that I would be able to do a balance transfer to a credit card, but later found out I can't go down that route.
My credit score isn't really the best. I applied for a Luma credit card Which has a 39% Apr and a £1000 limit to just make small purchases and attempt to raise my credit limit.
Since applying for that, my bank (Halifax) has offered me a credit card through the post with a 36 month interest free balance transfer and 12 month interest free on purchases.

So at long last my question... If I was to pay £1000 of my very off on the luma card, would I be able to then transfer that to the Halifax credit card? (Bearing in mind both cards have been active for just 2 days) or am I better off going down the Halifax 12 month interest free route on purchases?

Thanks in advance for your help!!

bigadaj

You should be able to pay it off as a purchase on the credit card which would avoid the alance transfer fee.

Then make sure you are putting by £150 per month to make sure you can pay off the balance in 12 months or you'll be in the same situation then.

jamesd

Yes, pay off with the Luma card than BT from that to Halifax. If your Halifax transfer limit is high enough you can pay off more with the Luma card once the Halifax payment reaches it, then BT that new balance to Halifax.

This is the better approach because it has the money at 0% for the longer 36 months and that gives you more time to get the debt level under control.

Do you have other debts? We can probably come up with creative ways to cut their costs as well.

Deesse

Hi

Does the handling fee for BTs come out of the total debt or do you get charged this separately during sign up?
e.g. if your fee is £70, will you be expected to pay that then and there or its included in the balance you will owe the new card?

Also, can you BT credit card debt even if you cancelled the card itself ages ago (over 2yrs) but are still paying the min each month to clear off the debt?

I'm new to this and finally taking the plunge to try shifting my debt.

Thank you!

grumbler

The fee is added to the transferred balance. That's one of the reasons why typically you can transfer up to 80-90% of the new credit limit.

Normally, to transfer a balance you need details of the card that you transfer the balance from. If you don't have the card, the only way is to get a card offering 0% on Money Transfers

Deesse

Oh wow thank you so much for the reply. You have saved me from making a very critical error. I didn't know about BT only applies to debt with active cards. I cancelled mine ages ago. Would have wrongly applied and marked my credit file for nothing!

Will look into the money transfer and see if i can do that.

Cheers!

praneeth08

Balance Transfer to clear overdraft on Debit Card?


Hi, I'm currently in a student 0% interest overdraft which I have been practically living in for the last few years. It ends in September 2016 and I know that I will not be out of it by then. Can I clear it by opening a credit card with good BT facilities and pay off the debt at a reasonable cost?

Sorry if the question has already been answered elsewhere on the site, but I have looked and can't find a reference.

Thanks
PJ

grumbler

See two posts above yours and MSE article: Cut Overdraft Costs

Also, you can transfer it 'slowly' by getting a spending 0% card, using it for day-to-day spending and directing the 'saved' cash to reduce the overdraft balance: 0% Credit Cards

stbob

When you have used a 0% transfer card and fully paid of the debt, should you close that credit card so you do not get too larger potential available credit limit that could affect your credit score?