Discussion
I want to transfer my current credit card balance to a 0% on transfer style card, which has a low rate therefafter on transferred balances after, say, 6 months and then has a low rate thereafter on future purchases. I get the standard letters through the door but they vary quite a lot. What "deals" have you lot got and who with? Capital 1 looked good compared to my First Direct card.
No such thing as "low rate" mate... you'd be better getting a loan out (around 7.9% APR) as it's cheaper than a Credit Card (14.9% APR if you are LUCKY!).
Sainsbury's and Tesco's both do 0% for six months, but then they hop up to about 14.9% VARIABLE APR after that (Tesco does, I have the stuff here).
If you're going to do it, then get ONE card, transfer some stuff and then pay it off... not really my business I know, but don't get sucked into the "free money" trap... the spiral only goes downwards...
Personally, I go by the addage (sp?) that if I can't afford it, I don't buy it. I use a Credit Card as it allow the money to be in MY account for longer, and the extra protection it offers in terms of insurance.
Sainsbury's and Tesco's both do 0% for six months, but then they hop up to about 14.9% VARIABLE APR after that (Tesco does, I have the stuff here).
If you're going to do it, then get ONE card, transfer some stuff and then pay it off... not really my business I know, but don't get sucked into the "free money" trap... the spiral only goes downwards...
Personally, I go by the addage (sp?) that if I can't afford it, I don't buy it. I use a Credit Card as it allow the money to be in MY account for longer, and the extra protection it offers in terms of insurance.
podie, there is free money!!
its called "rate tarting" and Ive been at it for 4 years. switch from one 0% card to the next every 6 months. so far paid for a motorbike and two cars. and not a penny interest. the other £10,000 is in my savings account - offsetting my mortgage interest.
try www.fool.co.uk message boards for credit card advise.
FYI there are currently 21 0% cards available.
NB capital one, dont sign up to the voluntary financial security schemes, that make rules like not upping the interest to 80% whenever they want.
I am with FD, and when I said I wanted to close the card to get a 0%, they offered me the 0% rate anyway.
try it.
its called "rate tarting" and Ive been at it for 4 years. switch from one 0% card to the next every 6 months. so far paid for a motorbike and two cars. and not a penny interest. the other £10,000 is in my savings account - offsetting my mortgage interest.
try www.fool.co.uk message boards for credit card advise.
FYI there are currently 21 0% cards available.
NB capital one, dont sign up to the voluntary financial security schemes, that make rules like not upping the interest to 80% whenever they want.
I am with FD, and when I said I wanted to close the card to get a 0%, they offered me the 0% rate anyway.
try it.
A couple of them are doing balance transfers at 0% until the balance is cleared !!
Have a look on www.moneyextra.co.uk
They have a handy 'credit card comparer'
Have a look on www.moneyextra.co.uk
They have a handy 'credit card comparer'
Podie said: What does this do to your credit rating...?
you only really have two or three cards on the go, and as long as you keep up the min payments, ON TIME, your credit is fine.
credit ratings are based on missed payments, TOTAL amount of available credit Vs total income etc.
so as long as your sensible and pay your bills, its no problem.
some guys I know have 10-15 cards, thats just poor money management really, there not required, and its just a headache keeping track of that many statements and APR rates. keep it simple.
egg.com allow you to (on-line) transfer balances to your current account (under the paying off an O/D assumption) or pay off loans, as well as just to other cards. so you effectively can get 'cash' from your current account at 0%.
of course - spend it wisely, or you can get in a right mess!
It does wonders - whilst I have come round to the idea of fiscal responsibility like you Podie, back in my younger days, I "rate tarted" my way through many credit cards, and still have an excellent credit rating to show for it.
Podie said: What does this do to your credit rating...?
Basically all the companies want to see is whether you can repay what they loan you - so long as you don't default, they are happy.
thanks chaps - most helpful. I dont live on the never never but the card is handy to keep money in my account plus the insurance/convenience factors.
I am in the process of going through all my finances as I am buying a new house - and it seems daft to be paying interest when other cards are offering these deals on balance transfers. Will use that calculator to get a new one.
ta muchly
I am in the process of going through all my finances as I am buying a new house - and it seems daft to be paying interest when other cards are offering these deals on balance transfers. Will use that calculator to get a new one.
ta muchly
hmm... perhaps I should take advantage of the 0% for it's duration... rather have the cash in MY pocket, than someone elses...
Podie said: What does this do to your credit rating...?
I work for a business that regularly decides whether or not to offer contracts to customers based on recommendations from credit reference agencies (experian & eqifax). We usually go on less than 6 apps (whether successful or not!) in any calendar year will not degrade your credit rating.
On the credit rating thing - watch out, what ever you do dont run up a high total on the card and pay it off in full (thats what I did cos I got the 0% on transfers) - hard the money and paid up.... your credit rating goes through the roof and the number of loans, credit cards and financial 'offers' you get through the post is STUPID....
Bloody anoying and just a small word of warning... sounds daft I know, but for some reason thats how the system works...
Cheers,
Paul
Bloody anoying and just a small word of warning... sounds daft I know, but for some reason thats how the system works...
Cheers,
Paul
I got an Egg and an RBS Advanta last year: the Egg is 0% until May and the RBS 0% until July I think. So whatever's left on one, I'll switch to the other!
Reason for having two was accidental: I applied for the RBS and they were taking forever to process my application (at this address for less than a year) so I switched to the Egg, intending to cancel the RBS. However on my initial RBS form I stated that I wanted to transfer £xxx from my old card: when the app. was approved they did it automatically. Not realising, I did another transfer from Egg, and I ended up a grand in credit! Needless to say my old card issuer was not forthcoming in either (a) advising me they had my money or (b) paying me interest on it.
I applied for the Egg card on a Saturday afternoon, got the paperwork Monday AM and had the card in my hand on Thursday. Can't want for more than that.
Note that I don't live on cards: just comes in handy for buying milling machines and stuff off Ebay!
Ian
Reason for having two was accidental: I applied for the RBS and they were taking forever to process my application (at this address for less than a year) so I switched to the Egg, intending to cancel the RBS. However on my initial RBS form I stated that I wanted to transfer £xxx from my old card: when the app. was approved they did it automatically. Not realising, I did another transfer from Egg, and I ended up a grand in credit! Needless to say my old card issuer was not forthcoming in either (a) advising me they had my money or (b) paying me interest on it.
I applied for the Egg card on a Saturday afternoon, got the paperwork Monday AM and had the card in my hand on Thursday. Can't want for more than that.
Note that I don't live on cards: just comes in handy for buying milling machines and stuff off Ebay!
Ian
Maf said: Yeah, I look for the cashback. Got the Halifax with 1%. Egg do 1/2%.
Other than that I make sure I pay them off every month.
Mat
Amex do one with a "stepped" 0.5%, 1%, 2% depending on level of spend.
BTW I recently paid my speeding fine
by cashback credit card - still hurt 
but I got a few quid back! Now if only they did a points transfer card.....
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