Should I move my balance now or wait until 0% period runs out?

boracic_2

This is my first time - I hope this question is not too basic. I owe £1.8k (Tesco card - 0% on balance runs out May 2008) and £600 (Barclaycard - 0% on balance runs out Oct 08). Should I wait until the last possible moment and then move balances, or take advantage of current offers in case 0% offers get scarcer? Virgin looks pretty good. (My circs mean that at present I need to look for offers for 0% on balance.)

Thanks in advance and thanks also for all the marvellous advice etc on this briliant site.

moneysavexpert1986

boracic wrote: »

This is my first time - I hope this question is not too basic. I owe £1.8k (Tesco card - 0% on balance runs out May 2008) and £600 (Barclaycard - 0% on balance runs out Oct 08). Should I wait until the last possible moment and then move balances, or take advantage of current offers in case 0% offers get scarcer? Virgin looks pretty good. (My circs mean that at present I need to look for offers for 0% on balance.)

Thanks in advance and thanks also for all the marvellous advice etc on this briliant site.

I'm in the same boat, not really sure. I think there's a risk that the credit limit you get on any new card will be less, not necessarily less months interest free. I got a Citibank card the other day and it came with a £500 credit limit - I normally get £1400+

Trembling_Turnip

Hi Boracic.

Personally, I would apply for one of the good 0% offers now to switch your Tesco card to. With only a couple of months left at 0% I prefer to have peace of mind that the amount has been switched to another 0% card and I don't need to worry about it for another year or so.

Also, if your first application is unsuccessful, you will have time to let your credit rating repair itself a little, so that you can apply for another card before your existing 0% offer ends. Don't make the same mistake as me when I applied for 4 cards in one month as my Virgin card interest was about to go from 0% to 22%!

The Virgin credit card is quite a good deal as long as you are sure to set up a direct debit, don't spend on it and can pay it off in full or switch to another card before the promotional 0% period ends.

I have a 0% existing customer deal with Halifax ending in May and I've just been approved as a new customer by Abbey for their 0% for 13 months BT offer, fee of 2.5%. I hope that they give me a decent credit limit or I'm going to have to do more jiggling about with existing card offers.

One last thing, check that the card you are applying for is not owned by the same group. For example, Royal Bank of Scotland is i think the same group as Tesco.

Hope some of this helps.

CannyJock

boracic wrote: »

This is my first time - I hope this question is not too basic. I owe £1.8k (Tesco card - 0% on balance runs out May 2008) and £600 (Barclaycard - 0% on balance runs out Oct 08). Should I wait until the last possible moment and then move balances, or take advantage of current offers in case 0% offers get scarcer? Virgin looks pretty good. (My circs mean that at present I need to look for offers for 0% on balance.)

Thanks in advance and thanks also for all the marvellous advice etc on this briliant site.

Not a dumb question at all. When I first thought about how to do this, I was thinking "linear" that I had to have one card, and try and get the start date of one to exactly match the end date of the other to minimise "lost" 0% days.

The Virgin card has the added advantage that you can transfer money straight into your bank account.

I'd say apply for the Virgin card today. If you're accepted, pull the maximum possible funds down straight into your current account and then put it into a high interest instant-access saver account. Just before your 0% with Tesco runs out in May, take some funds from your savings and clear the balance. Then in October do the same again to clear your Barclaycard. You'll make a few quid for your troubles, hopefully enough to cover your balance transfer costs.

If you're wanting to keep your credit file tidy and you've no need of the Tesco and Barclaycards then I'd say cancel them once you've cleared the balance (unless you use the Tesco card for spending to earn Clubcard points and clear the balance each month?).

Only other tip is if you're not sure exactly when Tesco needs to have the balance paid in full to prevent any interest charges, then call their customer services people and ask for an exact date that they need cleared funds by. I think when you receive your April statement you can phone them and ask them to change your direct debit instruction to take the balance in full - this could be the easiest way of making sure that you get the maximum from the 0% period.

boracic_2

Dear all who responded to me, thanks for all the support and advice; I have now transferred the o/s balances to a Virgin card and feel a lot better for it. Thanks again to all, and good luck!:D