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Credit cards

Holte139

Holte139

Vital Squad Member
I've got a bit of a dilemma with how to manage my credit and I would appreciate any advice that you guys have!

I've had a credit builder card ever since I left uni. The terms were terrible (£500 limit and 34.9% interest) but it was all I could get at the time and I wanted to be sensible and get myself on the credit ladder.

Fast forward 6 years and things are a bit better now. I've paid off a computer on credit and I'm just over halfway through a 4 year car loan. Never missed a payment or gone over any limits.

The limit on my card has gone up quite a bit but the interest has barely budged (down to 29.5%). I went back to uni to retrain during the pandemic, so my spending went up and without as much income, and the interest is starting to hammer me now. I'm not worried about not being able to afford it as I have a teaching job ready for September, I'd just like to save myself some money in the medium/long-term.

I've been doing some searching around and apparently I've been pre-approved for some decent 0% balance transfer cards but I've never done a balance transfer before.

If I got one where the 0% interest lasted at least 12 months, can you transfer a balance more than once? So, for example, say I transfer what I've got now and pay it off before the end of the season, could I then transfer the cost of next year's season ticket as well to take advantage of the lack of interest?
 
You'd have to check the terms of the 0% deals, some tie you in for a couple of years but there are plenty out there with no minimum term or fee for then moving again to a different 0% deal when the 12 months are up and the interest kicks in.

I would imagine pre-approved dealios would be more restrictive, so a more general search might get you better terms/future APR prices just on the off chance you don't kill the balance within the 12 months mate.
 
Holte139 said:
If I got one where the 0% interest lasted at least 12 months, can you transfer a balance more than once? So, for example, say I transfer what I've got now and pay it off before the end of the season, could I then transfer the cost of next year's season ticket as well to take advantage of the lack of interest?
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Quite often they do it as a limited time offer, but the offers can then return.

Used to find Barclaycard were good for repeat 0% offers.

And you should definitely never be paying that sort of interest, when you get close to a 0% going to interest bearing, transfer again.

Some of the pre-approved, you have to make double sure once you have applied, as some can say you can still have a card, but not on the same terms.

Personally think it should be illegal for any firm to charge that sort of % interest, it is disgraceful.

I use a card for all payments, but clear every month, and earn points (tesco) on it, that I then take advantage of by tripling the points for vouchers.
 
Oh and a general point for all, be careful how many things you apply for as that can affect your credit rating. Some cards you can apply before it goes on a credit search.
 
mike_field said:
You'd have to check the terms of the 0% deals, some tie you in for a couple of years
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I am pretty sure they can't do that.

But the 0% is usually (not always) for a set period and then it becomes interest bearing.
 
Might not be able to now (rightly), but thought it was worth mentioning just in case as I know I'm a few years out of date now.

Vague memory of my old man doing it a good few years back, but he was then able to move to another 0% deal when the interest kicked in.
 
My sister just used to switch to a new 0% card when the term ran out. They charge a fee these days, I believe, but it was still much cheaper.
 
My advice is to take your credit card cut it in half and bin it.
I haven't had one for 20 years now and it's the best thing I ever did.
If you haven't got the money don't buy it simply as that and if you have got the money to pay it off every month why have one.
 
Villan57 said:
My advice is to take your credit card cut it in half and bin it.
I haven't had one for 20 years now and it's the best thing I ever did.
If you haven't got the money don't buy it simply as that and if you have got the money to pay it off every month why have one.
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Credit cards used wisely are free money.

I've had Quidco cashback for opening accounts in the past. I've had Amex give me £50 for having one a few times. I currently get 0.5% back off everything I buy with my Barclaycard and have done for last 10yrs.

Only buy what you would buy anyway - just pay it off in full every month. UNLESS the offer is an interest free period. In that case put aside the full amount ready for when the offer ends.

Some balance transfers are free...if so then transfer but always have the full balance ready to pay back before interest kicks in.

Not worth it now but when interest rates were higher I was getting say 5% interest off about 11k of debt on a credit card as the 11k was in a bank making money and was ready to pay it back. It's called stoozing.
 
Gillette said:
Only buy what you would buy anyway - just pay it off in full every month. UNLESS the offer is an interest free period. In that case put aside the full amount ready for when the offer ends.
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Like I said why to bother if you can do that you don't need one.
They exist to get people into debt they can't afford, I know I've been there and we are all only a bad time away from being there too.


Not for Jeff only one winner and that's the banks and other rob dog bastards
 
Holte139 said:
I've got a bit of a dilemma with how to manage my credit and I would appreciate any advice that you guys have!

I've had a credit builder card ever since I left uni. The terms were terrible (£500 limit and 34.9% interest) but it was all I could get at the time and I wanted to be sensible and get myself on the credit ladder.

Fast forward 6 years and things are a bit better now. I've paid off a computer on credit and I'm just over halfway through a 4 year car loan. Never missed a payment or gone over any limits.

The limit on my card has gone up quite a bit but the interest has barely budged (down to 29.5%). I went back to uni to retrain during the pandemic, so my spending went up and without as much income, and the interest is starting to hammer me now. I'm not worried about not being able to afford it as I have a teaching job ready for September, I'd just like to save myself some money in the medium/long-term.

I've been doing some searching around and apparently I've been pre-approved for some decent 0% balance transfer cards but I've never done a balance transfer before.

If I got one where the 0% interest lasted at least 12 months, can you transfer a balance more than once? So, for example, say I transfer what I've got now and pay it off before the end of the season, could I then transfer the cost of next year's season ticket as well to take advantage of the lack of interest?
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Sorry mate I am no use on the credit card front.
However, any advice you need on the teaching from drop me a DM.
 
Villan57 said:
Like I said why to bother if you can do that you don't need one.
They exist to get people into debt they can't afford, I know I've been there and we are all only a bad time away from being there too.


Not for Jeff only one winner and that's the banks and other rob dog bastards
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Why bother?....errr 0.5% on everything I buy, cashback etc.
 
Gillette said:
Why bother?....errr 0.5% on everything I buy, cashback etc.
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Same, get great vouchers, then triple the value. But also the goods you buy are guaranteed, you don't need to carry cash (I carry none at all these days) ((although obviously I realise you can use a debit card)) so I always use one, but same as you, always clear it each month.
 
There are gains as long as you have the time and the discipline, but given my own past I more than get where 57 is coming from in terms of it being 'available' when things go tits up and it sucks you in.
 
mike_field said:
There are gains as long as you have the time and the discipline, but given my own past I more than get where 57 is coming from in terms of it being 'available' when things go tits up and it sucks you in.
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Exactly Mike they ruin lives as they target people who are struggling, it's ok the double income 100k year folks but the bloke on 20k a year uses them to survive and eventually it catches up with them and they end up in thousands of pounds of debt just trying to live.
I used to pay mine off every month when I was young, then I lost a couple of days a week pay for a month. Couldn't pay it off and bang they've got you , they then up your credit limit and so it goes on until your monthly wages just about clear your cards.
For every person who plays the game there a load who can't and just about manage to find the minimum payment.
 
Yup, can't fault anyone who plays the game ala JF and Gillette, as said there are wins to be had if you can stay on top of it, and I'm sure from memory when my old man played the 0% balance game he wiped his card 2 odd years earlier than planned owing to the lack of interest being added.

I walked away from my own card/loan over a decade ago and even though I know the gains, I'll never have one again purely based on something going tits up that I can't predict.

My credit rating has gone from basically zero when I was in the shite many years ago, to almost perfect now just based on home utilities I guess, because I haven't had a penny of debt in my name since 2007 - I just had to wait for it to fall off my credit report.
 
Thanks everyone, I think what I'll do is have a look in more detail about what kind of deals I can get but I know I'll need to be careful about applying because I don't want to cause myself any problems.

Based on what I think I'll be able to get so far, the best deal I've been able to find up to now is 0% on transfers for up to 29 months, with a 2.5% transfer fee. If it works out that way then I'll save a bit of cash and potentially have the option of saving interest on future purchases by transferring again once everything's clear.
 
mike_field said:
Yup, can't fault anyone who plays the game ala JF and Gillette, as said there are wins to be had if you can stay on top of it, and I'm sure from memory when my old man played the 0% balance game he wiped his card 2 odd years earlier than planned owing to the lack of interest being added.

I walked away from my own card/loan over a decade ago and even though I know the gains, I'll never have one again purely based on something going tits up that I can't predict.

My credit rating has gone from basically zero when I was in the shite many years ago, to almost perfect now just based on home utilities I guess, because I haven't had a penny of debt in my name since 2007 - I just had to wait for it to fall off my credit report.
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Been there done that Mike, best way trust me. My only credit rating now is my phone, and that's sim only I probably don't really have a credit rating but I don't want one.
 
Holte139 said:
Thanks everyone, I think what I'll do is have a look in more detail about what kind of deals I can get but I know I'll need to be careful about applying because I don't want to cause myself any problems.

Based on what I think I'll be able to get so far, the best deal I've been able to find up to now is 0% on transfers for up to 29 months, with a 2.5% transfer fee. If it works out that way then I'll save a bit of cash and potentially have the option of saving interest on future purchases by transferring again once everything's clear.
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Mate have you looked on the usuals - MSE, compare the meerkat etc.

The 29 months and 2.5% transfer fee has my alarm bells ringing.

Definitely don't make numerous applications as that counts against you as it looks like (to the bean counters) you are desperate rather than getting multiple quotes for the best deal.

I would highly recommend cutting the card in half after you transfer though, use it as an option to kill the balance not use it as an interest free balance that you grow. Put every penny you can on it as opposed to using it.
 
Villan57 said:
Been there done that Mike, best way trust me. My only credit rating now is my phone, and that's sim only I probably don't really have a credit rating but I don't want one.
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I don't even have a phone lol I was bankless until 2019 and I've only got one now because we finally joint accounted for ease.
 
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