The Best Balance Transfers article discussion area

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  • knouchy
    knouchy Posts: 2 Newbie
    I always pay off the balance in full but having bought a new kitchen last month I am considering a balance transfer. Would my original account be closed or can I continue to spend on it? I save a lot using my Nationwide card abroad and it would not be worth losing it.
  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
    Hi Knouchy

    Welcome to MSE & the credit card board!

    IMO, the kitchen's the most important room in the house. Unfortunately, it's also the most expensive to refurbish!
    Would my original account be closed or can I continue to spend on it?

    If you clear the entire balance by requesting a balance transfer before the payment due date shown on your monthly statement, you can continue spending on your Nationwide card interest-free.
    People who don't know their rights, don't actually have those rights.
  • missmeerkat
    missmeerkat Posts: 4 Newbie
    Moggles wrote:
    Hi missmeerkat

    From the lender's perspective, it's not a problem. Customer services may ask them for the name on your card, but this is purely an additional verification check.

    At the end of the day, the card company is after your relative's business. They're not really interested in knowing who ran up the debt, as long as their customer, your relative, pays up on time each month!

    Thanks for the info Moggles. I will be calling the family today to see if I have any takers!
  • Doglover88
    Doglover88 Posts: 431 Forumite
    Whats the best 0% balance transfer card at the mo? I've got a good credit rating and looking to transfer a loan onto a 0% card. Also what would the minimum payments be each month, as a %?

    Many thanks in advance
  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
    You can shift a credit card balance to another credit card. Transferring a loan to a credit card is not so straightforward. Only a few rather special credit cards have this capability. For an explanation, please click on *Super BTs* in the black box at the top of this board.

    The risk in paying off a loan this way is that you can't be sure of another 0% credit card offer in X months time when the current 0% deal ends and the interest rate jumps to anything from 13.9 to 23.9% APR or higher. Unless you will have savings to cover a possible shortfall then, I would think again.

    Also, you'll need to factor in balance transfer fees which are becoming hard to avoid and check the loan Ts & C's. Some lenders charge an early repayment penalty if the loan is settled in full before the scheduled date.
    People who don't know their rights, don't actually have those rights.
  • ravidhillon
    ravidhillon Posts: 1 Newbie
    Hope you don’t mind me contacting you but I thought I would tell you about a good balance transfer rate from egg credit card of all people!!!
    Until end of October they are offering some customers life of balance transfer deals @ 5.9% with no transfer fees. I don know if this is a genric offer or just targeted at some customers.
    I have an egg card but haven’t used it in excess of 18 months and there is no debt on there!!

    what do you think?
  • moni72
    moni72 Posts: 69 Forumite
    First Anniversary Combo Breaker
    I think this is an excellent deal but wanted to run it by some more experienced money savers to make sure??!!!

    Capital One have sent a mail shot to me offering 18 months 0% on balance transfers when I spend £100 on purchases within the first 3 months of opening the account. There's also a 2% handling fee.

    I realise this means I will pay interest on the £100 for the 18 months at their rate of 15.9% per annum variable on purchases.

    I am transferring £6500 so I think that means i'll pay £130 fee plus £36.57 per year in interest (15.9% x £230 - £100 in purchases and £130 fee). Is that right?

    Any advice would be greatly appreciated!

    Thanks
  • moni72
    moni72 Posts: 69 Forumite
    First Anniversary Combo Breaker
    ravidhillon wrote:
    Hope you don’t mind me contacting you but I thought I would tell you about a good balance transfer rate from egg credit card of all people!!!
    Until end of October they are offering some customers life of balance transfer deals @ 5.9% with no transfer fees. I don know if this is a genric offer or just targeted at some customers.
    I have an egg card but haven’t used it in excess of 18 months and there is no debt on there!!

    what do you think?

    I jumped at this offer from Egg at the beginning of September and I'm delighted with it! Less hassle and at a decent rate of interest.
  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
    Hi ravidhillon

    Welcome to MSE & the credit card board!

    Thanks for highlighting this offer for existing Egg customers.

    Cheers
    M.
    People who don't know their rights, don't actually have those rights.
  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
    Originally posted by moni72
    I realise this means I will pay interest on the £100 for the 18 months at their rate of 15.9% per annum variable on purchases.

    You can avoid paying interest if you clear your balance of £100 worth of retail purchases first, before you request any balance transfers. ;)
    People who don't know their rights, don't actually have those rights.
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