Balance transfer

[maryp0ppins]

How does this work? I have a cc that I'd like to transfer the balance to another one so I can pay it off interest free, does the original account just close when you do the transfer?

 

[bigbetty]

No you have to close it - and it's important that you do because while it's open it's counted as credit you have in your name.

A few years ago we tried to transfer the balance of our credit card, but they wouldn't let us have very much of a credit limit. It turns out that an old cc account my husband used to have was still open after he had transferred the balance years ago and it counted on his credit rating - despite him not having anything outstanding on it. Once he closed it we were able to sort our balance transfer xx

 

[maryp0ppins]

I'd like to keep the original acct open and just not use it as I've read closing credit cards can affect your credit rating/history? After you do the transfer do you HAVE to close the account of the previous card? Or could I say go out and use it 6 months from now? (not that I want to I'm trying to clear my debt)

 

[bigbetty]

No you don't have to, but when you are assessed for credit in the future if you have the account open still it's classed as credit you already have, so you might not get as much as you want if you see what I mean.

When we wanted to transfer our balance we needed about £1500 but the new cc company would only give us a couple of hundred. When we investigated it was because an old credit card account was still open so in theory we had the whole of that credit limit available to us already - which is why they wouldn't lend us very much. When we closed the account and re-applied we got a much higher limit on our new one.

Hope that makes sense lol

 

[maryp0ppins]

Yep it makes sense thanks, the only other credit I will apply for in the future is a mortgage, probably in about 5 yrs so think I'm going to keep it open for the time being. Just did an online credit score and I've come back at 790, recently got a personal loan for £2000 and only have made 1 payment towards it, was hoping to have a score over 800 but I think this loan has brought it down.

 

[suzib76]

first off your credit score is worth diddly squat as each lender uses different criteria when deciding who to lend to. a score set by a third party means nothing in terms of actually borrowing

also keeping the credit account open but not using it will not help your rating at all, if you are not using it then it isnt recording any repayments which is what lenders want to see when they look at your file. Also it will show as available credit, which will make any amount you are able to borrow in the future less

 

[maryp0ppins]

first off your credit score is worth diddly squat as each lender uses different criteria when deciding who to lend to. a score set by a third party means nothing in terms of actually borrowing

also keeping the credit account open but not using it will not help your rating at all, if you are not using it then it isnt recording any repayments which is what lenders want to see when they look at your file. Also it will show as available credit, which will make any amount you are able to borrow in the future less

thanks!