Best Balance Transfers Discussion Area

Moggles_2 · 13 January 2008 at 4:21PM

Originally Posted by MaureenH
Last month I transferred a balance from Barclaycard to Halifax because Halifax offered me a low fixed rate for the life of the balance. This month I have received a bill from Barclaycard. When I queried what it was for, I was told that their policy is, that if you have only made the minimum payment in the past and then clear your balance, they charge you the interest from the date of the statement to the date of payment.

It sounds as though you have misunderstood the explanation you were given. The above has nothing to do with balance transfers per se. If you had settled the bill in full yourself, you would still incur some interest during this statement period, if you had made the minimum payment required or a partial payment the previous month.

I suppose the answer is to leave a small balance on your credit card to be paid at a later date.

This would have cost you more. The way to avoid interest is to settle your bill in full each month, unless of course you're offered a special 0% APR deal

Moggles_2 · 13 January 2008 at 4:25PM

Originally Posted by soulstripper
I had an Abbey card with 0 % that ran out in January.
I tried to transfer my balance to a new Barclaycard, but they refused because they said it was taken over by SANTANDER "They're Spanish" she said
"If there's any problems, we can't get hold of them."

I transferred a balance from Abbey/Santander to my new Barclaycard Breathe card last month without a hitch, so you may have been given duff information. This happens to us all from time to time. If possible, I would phone back during normal business hours, when you're more likely to be put through to someone who knows what they're up to

Of course I could be wrong. Things change over time, but nobody else has reported this particular problem on these boards, AFAIK.

sammy452 · 13 January 2008 at 6:00PM

Thanks for the previous advice, am going to give the M & S card a go.
However, one further question, how am I going to assure I get a credit limit of around £7000 to cover the balance transfer? I could go through the whole process and only receive a limit that is considerably lower, is this a chance I have to take?

Agaton_Sax · 13 January 2008 at 7:30PM

Have been sent an offer from Goldfish for 4.9% p.a. on balance transfers until January 2011. Is this a good deal ? The problem is I have a Virgin card with 3,000 on it and at it's max and the Goldfish promotion includes a £25 Virgin Voucher Gift which makes me suspicious that Goldfish & Virgin are of the same company and usually you can't transfer between 2 of the same; I discovered that with MBNA !
Anyway, any advice would be appreciated.

Moggles_2 · 13 January 2008 at 9:04PM

Originally Posted by sammy452
..how am I going to be sure I get a credit limit of around £7000 to cover the balance transfer? I could go through the whole process and only receive a limit that is considerably lower. Is this a chance I have to take?

Unfortunately, yes. None of us knows in advance the credit limit we will be given. On the plus side, you have healthy limits on your existing cards. That said, the so-called credit crunch may mean that, this time round, you're handed a lower limit.

If the worst happens, transfer what you can. You'll still save money. Don't leave an offer unused out of exasperation. It's already on your credit file, so you may as well use it (Please see Martin's *Credit Card Limit: Didn't get what you wanted?* article on the main site).

MaureenH · 13 January 2008 at 11:44PM

Moggles wrote: »

It sounds as though you have misunderstood the explanation you were given over the phone. The above has nothing to do with balance transfers per se. If you had settled the bill in full yourself, you would still incur some interest during this statement period, if you had made the minimum payment required the previous month, followed by the balance due X days later.

This would have cost you more. The way to avoid interest is to settle your bill in full each month, unless of course you're offered a special 0% APR deal

Thanks for your reply.
I actually got the explanation from the letter that Barclaycard sent me when I queried the bill.
I quote, 'Recent changes made to interest application effects cardholders who choose to pay their statement balance in full, when they have previously only made minimim or partial payments. We now charge interest from the date of the statement, until the date the full payment is made. This change reflects the increasing costs of providing credit card account facilities.'
Whilst this would seem to confirm what you are saying, it also appears to be a fairly recent change and I'm not sure that most people who clear their credit card balance, whether they pay in full or transfer to a 0%, are aware of it. In recent years I have made balance tranfers to 0% or a low rate card many times, but have never before encountered this charge. If, as some of the posters here have indicated, they are transferring several thousand pounds, the interest can be another £30-50.

So, transfer your money to a credit card offering 0% by all means, good move....just be aware, that may not be the end of the interest charges!

Jo4 · 14 January 2008 at 4:10PM

A friend has a Barclaycard that you have to charge £1 to it every month and then your interest rate is approximately 5.9% apr. They got a letter offering them a rate of 6.9% apr with 2.5% handling fee. Should they do a balance transfer to this card or not, would they lose their existing rate?

Can anyone please advise? Is this a good offer?

Moggles_2 · 14 January 2008 at 4:12PM

Originally Posted by Agaton Sax
Have been sent an offer from Goldfish for 4.9% p.a. on balance transfers until January 2011. Is this a good deal ?

Firstly, are you a potential new customer or an existing Goldfish cardholder?

Secondly, is this offer addressed to you personally or is it a mailshot to "the occupier?"

Moggles_2 · 14 January 2008 at 4:14PM

Originally Posted by Agaton Sax
The problem is I have a Virgin card with £3,000 on it and at it's max and the Goldfish promotion includes a £25 Virgin Voucher Gift which makes me suspicious that Goldfish & Virgin are of the same company and usually you can't transfer between two of the same; I discovered that with MBNA!

Goldfish Bank is an entirely separate operation. This lender will accept balance transfers from Virgin which, as you know, is underwritten by MBNA.

Moggles_2 · 14 January 2008 at 11:47PM

Originally Posted by Jo4
A friend has a Barclaycard that you have to charge £1 to every month and then your interest rate is approximately 5.9% apr. They got a letter offering them a rate of 6.9% apr with 2.5% handling fee. Should they do a balance transfer to this card or not?

On the face of it, it's hard to see why anyone would want to transfer a balance from a card which charges 5.9% APR to one that offers 6.9% APR and charges a 2.5% handling fee for the privilege

Perhaps the requirement to spend £1 per month on this card has become more troublesome than it's worth. Are these purchases trapped on the card attracting interest, perhaps, at the standard rate?

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