Balance Transfer Questions

Toastie

I downloaded the Credit Card Re-shuffle worksheet.

I have three Credit Cards; Capital One £1200 (debt) £3890 (credit limit)
Morgan Stanley £1200 (debt) £5900 (credit limit)
Tesco £4100 (debt) £4000 (credit limit)

I can't get accepted for another card. So I was wondering because I haven't reactivated the Morgan Stanley and Capital One cards wether i could transfer the Capital One Balance on to the Morgan Stanley card (it's 3% less interest per month and £11 less minimum repayments per month)

What i would like to know is; if i transfer the debt will one part be paid off then the other? Or will they both be paid off at the same time?

Thank you.

dylanuk

If you get in touch with Morgan Stanley you'll be able to ask them if you can transfer the debt over, and they should be able to start the process for you. You could also try and ask if you can get a promo rate on it at all (you never know).

If the interest rates are the same on balance transfers and purchases - i.e. you don't get a promo rate for the balance transfer, then payments won't matter too much which order they go in.

If you do get a promo rate, payments will go towards repaying the lowest rate balance first. Sometimes, even if rates are the same, payments can go to balance transfers before purchases. If it's listed the same, e.g. "standard balance transfers and purchases" paid off together, then it will mean the oldest transaction will get paid off first. There's some more information on the ways payments are allocated on your account here: http://www.credit-card-comparison-online.co.uk/faq/0-balance-transfer-purchase/allocation-of-payments-clause.html

Hope this helps,

Toastie

It does alot. Thank you very much for your help.

Morgan Stanley will balance transfer for 6.9% not bad seeing as its about 7years on going.

dylanuk

Hi again,

You're probably already aware from my previous post, but just in case, as Morgan Stanley have offered a rate of 6.9% on the balance transfer amount, the money you move over to the 6.9% rate will get paid off first - until in full - before any of your payments will pay off the balance you already have on the Morgan Stanley credit card which I'm assuming is at the standard rate.

You will be saving money by transferring, but you will have to clear the cheaper Morgan Stanley (the balance you move over) first, and the higher rate balance (the current balance) will stay on the account longer.