Timing to apply for 0% Balance Transfer card??

coolguycp1 · 19 April 2014 at 5:38PM

I am looking to pay for my new car using my existing credit card (around £8000) and transfer the balance to a 0% credit card.This is mainly to spread the cost over a longer period for a flexible cashflow. I have a very good credit history with no missed payments and no outstanding credit card balance so, hopefully, balance transfer should be a straight forward process as long as I get a credit limit around my existing card.

There is normally a 60-90 day window for balance transfer after a successful credit card application.

Should I apply for the new card now or after I pay for the car as I have read somewhere that the credit card companies usually look into the applicant's amount of current available credit already used while deciding the credit limit.

Roland_Sausage · 19 April 2014 at 6:03PM

I would do it before buying the car. Otherwise you might find that you are given a credit limit too small to cover the amount to be transferred, leaving you to have to pay interest on a portion of the balance.

CKhalvashi · 19 April 2014 at 6:16PM

I'm with Roland on this.

It's always best to see what you get, so you have time to get a backup plan in place before parting with any money.

CK

coolguycp1 · 20 April 2014 at 2:31AM

Thanks.

Now the next issue. I was planning to shift the debt from my Halifax Clarity card to Bank of Scotland card or the Lloyd's card as they are giving 0% for 24 months at a reduced fee of 1.5%. The moneysaving website says debt can be shifted from Halifax to BOS or Lloyds .

http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards#lloyds24

When I phoned BOS customer care, she also advised that it should not be a problem to transfer from Halifax to BOS.

However, FAQ on BOS website clearly states transfers from Halifax credit cards are not acceptable

.https://www.bankofscotland.co.uk/creditcards/forms/balance_transfer/faqs.asp

Who should I believe?

bouncydog1 · 20 April 2014 at 9:59AM

Halifax and bank of Scotland do not allow transfers (HBOs). Better bet might be mbna or virgin as they give large limits and allow cash into bank accounts so perhaps easier than doing card transfer although fee is 4% so a bit higher.

coolguycp1 · 20 April 2014 at 10:18AM

I want to keep the fees to a minimum, hence my preference for bank of Scotland or Lloyd's.

I did check with Lloyd's again over the phone and it's credit card advisor said that transfer from Halifax to Lloyds is definitely allowed but they don't allow transfer from Lloyd's to Lloyd's cards. This is similar to what the Bank of Scotland adviser said on the phone yesterday. However, the fine print on both their website clearly mentions that transfer within Lloyd's banking group cards is not allowed.

Has anyone else managed to balance transfer from Halifax to Lloyd's or Bank of Scotland without any issues?

YorkshireBoy · 20 April 2014 at 12:19PM

coolguycp1 wrote: »

I want to keep the fees to a minimum

The car dealer will want to charge you circa 2-3% for paying by credit card (and if they don't, there was another 2-3% discount available to be negotiated). Add on the 1.5% BT fee and that's up to 4.5% in fees.

As already suggested, perhaps better to go the MBNA money transfer route with it's 4% fee for 30 months 0%?

Has anyone else managed to balance transfer from Halifax to...Bank of Scotland without any issues?

Both cards are issued/underwritten by the same entity, "Bank of Scotland PLC", so transfers from one to the other are not allowed.

And according to the Lloyds card T&Cs, you can't BT from Halifax to Lloyds.

So does it matter that someone else may have got away with it? Even if they have, you could be stuck with a debt (on Halifax) that you can't shift. As I said above, far better to find an alternative method.

coolguycp1 · 20 April 2014 at 12:37PM

I did manage to get the car dealer to waive the CC charges, so the only reason for balance transfer is to repay the debt in a longer timeframe and for a low fees.

The reason for preferring Lloyd's or Bank Of Scotland over Barclaycard or MBNA is the fees is nearly half (1.5% against 3 to 4%) as the payment timeframe of 24 months or more suits me.

I agree with you that I should look for Barclaycard or MBNA in case Lloyd's or Bank Of Scotland refuse to shift debt from Halifax citing T&Cs after application. Any suggestions which (Barclaycard or MBNA) are usually more generous in their credit limits?

YorkshireBoy · 20 April 2014 at 12:50PM

coolguycp1 wrote: »

Any suggestions which (Barclaycard or MBNA) are usually more generous in their credit limits?

MBNA are generally recognised as being the most generous of all the providers.

coolguycp1 · 21 April 2014 at 11:11AM

Update – Did an eligibilty check (quotation search) for MBNA’s 30 month 0% on their website, but was offered to apply for 18 month 0% deal instead. Decided to not apply for the same (should have listened to YorkshireBoy).

Then I applied for Barclaycard Platinum 31 month 0% card, application was successful, however, approved credit limit was only £3000. Waiting for the card to arrive in post, but not too happy as I was hoping for a bigger credit limit (to shift the whole of the debt easily).

Now to the question, should I also apply for MBNA card (18 month at 0%), as I might get a higher credit limit which I can then use to transfer the debt to both Barclaycard and MBNA?
Is it advisable to make two credit applications on the same day and will it have an adverse effect on my credit rating?

Another thought is to get the wife to apply for a Balance Transfer card in her own name, use her current credit card to part pay for the car, and then transfer her debt to the new BT card. She also has a very good credit record with no missed payments, however, the home address will be the same, so is it advisable for her to apply on her own?

marathonic · 21 April 2014 at 11:55AM

coolguycp1 wrote: »

I did manage to get the car dealer to waive the CC charges, so the only reason for balance transfer is to repay the debt in a longer timeframe and for a low fees.

I don't think you understood the previous poster completely.

You may have got the dealer to waive the CC charges. However, he still has to pay them. Therefore, if he was willing to waive a 2% CC Charge on a £5,000 purchase, I can guarantee you that if you went back to him and said you can pay £4,900 cash instead, he would have accepted - as he'd end up with the same amount either way.

Timing to apply for 0% Balance Transfer card??

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