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  • FIRST POST
    • Superhoop91
    • By Superhoop91 10th Apr 18, 1:16 PM
    • 19Posts
    • 2Thanks
    Superhoop91
    2nd card Dilemma
    • #1
    • 10th Apr 18, 1:16 PM
    2nd card Dilemma 10th Apr 18 at 1:16 PM
    Hi All,

    I would imagine what I am going to ask if going to be quite subjective but I'm interested to hear people's thoughts.

    I'm in the process of paying off payday loans and want to clear them ASAP. I currently have a Capital One basic card with a limit of 750, going up to 1000 in 9 days. My plan is to put all my spending on the card and use that money to pay off more of my loans. I should be able to complete the payments on loans in 3 months time if I keep this strategy as I will save interest (more than I'll pay on interest on the CC). I will hit my limit on my card some point next month and here comes the dilenma:

    3 weeks ago I applied for an Aqua card. Getting hold of them has been a nightmare and emails and post they promised they've sent has never arrived. I finally spoke to them today and they said I have to send in proof of ID but the whole process could take another 4 weeks which sounds ridiculous. They will also be charging me very high APR (higher than advertised). They have though already completed the hard check on me so it will appear on my credit file regardless of whether I complete the process. As my intention will be to spend on it and not pay for a few months, I'll incur high interest on it and I have no idea what credit limit they will offer.

    My second option is I have been 100% pre approved for a second Capital One balance transfer card, free for 4 months (3% transfer fee). I could put my balance over from my 1st card onto this and save interest for a while on that balance and use my existing balance on my first card to cover the next 3 months spending, until I can start paying that off (should be able to pay 300 a month so wouldn't take too long to clear). The issue here though is that on top of having to run another hard check on me (my credit score is awful but I'm trying to improve it), there is no guarantee what limit they will give me and also as I have just had a credit limit increase, my presumption a limit on my second card would likely to be low?

    The third option would be I have been given a 70% eligibility likelihood of getting a 12 month balance transfer and purchases card with Barclaycard. I would be able to pay off the whole transfer and purchases before the 12 months. My issue here is though that of course I have only been given a 70% chance of being approved and the last thing I'd want is a decline on my record. If I knew I could get this card, it would be a no brainer to use this one though

    What do people believe me be the best situation for me?

    Thanks
Page 1
    • Superhoop91
    • By Superhoop91 10th Apr 18, 1:29 PM
    • 19 Posts
    • 2 Thanks
    Superhoop91
    • #2
    • 10th Apr 18, 1:29 PM
    • #2
    • 10th Apr 18, 1:29 PM
    Sorry the Capital One card is 6 months free balance transfer.
    • PeacefulWaters
    • By PeacefulWaters 10th Apr 18, 1:29 PM
    • 8,211 Posts
    • 10,463 Thanks
    PeacefulWaters
    • #3
    • 10th Apr 18, 1:29 PM
    • #3
    • 10th Apr 18, 1:29 PM
    Credit card interest is usually far cheaper than payday loan interest, so there's logic to your strategy as long as you're not going to build up any further debts.

    the last thing I'd want is a decline on my record
    You credit file will only show a search. Not a decline.

    I have to send in proof of ID
    Make sure you're registered to vote at your current address.
    • msallen
    • By msallen 10th Apr 18, 3:26 PM
    • 773 Posts
    • 839 Thanks
    msallen
    • #4
    • 10th Apr 18, 3:26 PM
    • #4
    • 10th Apr 18, 3:26 PM
    Note that you will not be able to balance transfer from one Capital One card to another Capital One card (or indeed between any two cards from the same issuer) so that particular bit of the plan won't work.
    • Superhoop91
    • By Superhoop91 10th Apr 18, 3:43 PM
    • 19 Posts
    • 2 Thanks
    Superhoop91
    • #5
    • 10th Apr 18, 3:43 PM
    • #5
    • 10th Apr 18, 3:43 PM
    Thank you Peaceful. Of the 3 options given my predicament and likely use of the cards plus the length of time, would you say go for the Barclaycard one despite already applying for the Aqua one as the costs are so high. If I'm unsuccessful then see what credit limit Capital One give me?
    • jonesMUFCforever
    • By jonesMUFCforever 10th Apr 18, 8:16 PM
    • 24,628 Posts
    • 11,866 Thanks
    jonesMUFCforever
    • #6
    • 10th Apr 18, 8:16 PM
    • #6
    • 10th Apr 18, 8:16 PM
    OP take the Capital One card.

    If you have a history of payday loans then I can't see any other mainline lender wanting to give you a new card.
    What goes around - comes around
    give lots and you will always receive lots
    • Superhoop91
    • By Superhoop91 11th Apr 18, 1:45 AM
    • 19 Posts
    • 2 Thanks
    Superhoop91
    • #7
    • 11th Apr 18, 1:45 AM
    • #7
    • 11th Apr 18, 1:45 AM
    Thank you all for your thoughts. Anyone else able to weigh in? Guessing the applying for the one I'm 70% likely for isn't a good idea?
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