0% Balance Transfer

[Richard999]

Hi

Thanks to invaluable help from Niddy I have now got no defaults on my Experian credit file but credit score is only fair as I have £ 9,000 of credit card debt against a limit of £ 10,000 which makes my position look stretched. This is because in the past few years every time I paid a reasonable chunk off the balance the provider reduced my credit limit !

I am paying £ 250 total minimum payment each month but this is just interest and the debt will go on forever unless I can transfer the balance to 0% for a couple of years and then what I pay will pay off the debt each month rather than give them interest !

Any ideas how I can do this with ?

I could borrow some cash from a friend to bring down the balances short term but how long would it take for my credit score to go up to good or excellent?

If I then applied for a few credit cards at 0% would these all be accepted or would my score be affected due to the number of applications ?

I am fed up with just paying interest and it would be a bonus to get some payback on both the providers and the CRA's - who I believe are just commercial enterprises who have no legal right to hold our information and sell it and use it for their own purposes of profit ( I suppose we gave them that right though every time we didn't read the small print on an application ! )

Sorry for the rant !

Rich

[Never-In-Doubt]

Re: 0% Balance Transfer

Who is your main bank mate? Try those first

[Never-In-Doubt]

Re: 0% Balance Transfer

Also try flybe or similar creation finance cards. Flybe is best for start limits (upto £5k)

Thing is creation is one above sub prime so once you get one, apply for a new card the month later - you will find you could get 3/4 cards at 12 months 0% with £2k limits. Every 3 months creation increase limit by 33.33% if you ring and ask them

[Never-In-Doubt]

Re: 0% Balance Transfer

Linky --> Credit Cards

[Richard999]

Re: 0% Balance Transfer

Thanks Niddy

My bank is Lloyds TSB but I don't think they like me very much as I made them remove an old debt from my credit file which had been defaulted over six years ago - now not showing on CRA but I reckon they must take it into account in there own file on me ?

I applied to Virgin (MBNA ? ) yesterday and got turned down :-)

Will take your advice as above.

Thanks as always !
Rich

[Beefy1976]

Re: 0% Balance Transfer

Do you know how far back Creation search?

Would it be worth applying if I have 2 unsatisfied defaults both over 4 years old?

Cheers,
Beefy

[Never-In-Doubt]

Re: 0% Balance Transfer

They go back 3 years AND search CIFAS and address links. Pretty easy though if you're honest and have 3 years clear.

If they decline reapply in 6 months for a yes

Give it a go. Apply in office hours (9-5) and get automated decision.

[Never-In-Doubt]

Re: 0% Balance Transfer

Thanks Niddy

My bank is Lloyds TSB but I don't think they like me very much as I made them remove an old debt from my credit file which had been defaulted over six years ago - now not showing on CRA but I reckon they must take it into account in there own file on me ?

I applied to Virgin (MBNA ? ) yesterday and got turned down :-)

Will take your advice as above.

Thanks as always !
Rich

Ok can you increase your overdraft? They don't score you it's built in so if you already have an overdraft login and go to your account. If it allows you to edit overdraft then go into it and whatever your existing is, add £100 and hit apply. Tick the two check boxes and ok it.

It uses internal pre-set limits. If you get the increase its instant and if not it'll just say no. Don't appeal as it changes the 3rd Monday of the month - basically after 21st. On 25th of each month I ALWAYS try and increase mine just to see

You won't be scored for increasing an overdraft. If you don't have one, go to your current account and click upgrade. See if it lists other accounts. If it does just come out of it - don't upgrade. If however it says that this account is not eligible then you've got a credit decline policy 99 (unique to ltsb)

Give the OD a try and let me know. If it allows the £100 increase I'd say apply for a card with them or with bank of Scotland (easier scoring at HBOS leeds than Lloyds in Brighton)....

Good luck

[Beefy1976]

Re: 0% Balance Transfer

They go back 3 years AND search CIFAS and address links. Pretty easy though if you're honest and have 3 years clear.

If they decline reapply in 6 months for a yes

Give it a go. Apply in office hours (9-5) and get automated decision.

I shall wait until the electoral roll has been updated to reflect my new address and then apply so thanks for that.

Is it only TSB that operate the overdrafts like you say? I bank with Santander and wondered if they're the same?

Thanks again,
Beefy

[Never-In-Doubt]

Re: 0% Balance Transfer

Santander likewise pre-authorise so from the left side when you're in your account options; select overdraft and type in £100. If it goes through you'll see it. If not a pop up box appears saying error it's above your authorised amount. If you've currently not got one give it a try

But that's also not searched - it's based on their monthly feed and your average credit balance as shown in your statements. If you have an OD make sure you don't apply for more than the previous months average from your statement as that's the cut off point - unless internal scoring allowed a higher limit.

Cards are scored sadly. Hard to get but if you're a 123 bank customer and had it a year+ they might give you one with £500 limit. Offers (guaranteed) appear after 12 months

[Beefy1976]

Re: 0% Balance Transfer

Santander likewise pre-authorise so from the left side when you're in your account options; select overdraft and type in £100. If it goes through you'll see it. If not a pop up box appears saying error it's above your authorised amount. If you've currently not got one give it a try

But that's also not searched - it's based on their monthly feed and your average credit balance as shown in your statements. If you have an OD make sure you don't apply for more than the previous months average from your statement as that's the cut off point - unless internal scoring allowed a higher limit.

Cards are scored sadly. Hard to get but if you're a 123 bank customer and had it a year+ they might give you one with £500 limit. Offers (guaranteed) appear after 12 months

Thanks again for all the info.

I am a 123 account customer but not sure I'd want one of their credit cards. I'll try the overdraft tomorrow when I'm on the laptop and let you know. I already have an overdraft so we'll see what the computer says!

Cheers,
Beefy

[Never-In-Doubt]

Re: 0% Balance Transfer

Well I never actually had a Santander OD before as never needed one. However to test the theory above, I started at £50....



I then went to £500 - then to £750 then to £950 (and stopped).

My average balance as at last month was £2140 so I guess that's how far it will let me go...



The screenshots above for Santander assume you have been auto-approved. If you get a little pop-up box then you've not been accepted. So to cancel the OD increase, simply go back to your accounts and do not enter the OTP number they'll text you.

That cancels you out of it, however no harm to add it once approved....

Anything else - just gimme a shout, can't be a guinea pig though as I really don't need or want credit

[Never-In-Doubt]

Re: 0% Balance Transfer

Regards the Credit Policy Decline I mentioned (Specific to LTSB/HFX) watch and see for yourself....

I bank with Bank of Scotland - as you can see below, I can edit my OD at any point:



However, notice when I login to Halifax site, it doesn't actually allow me to do anything other than cancel my OD.



This is a prime example of showing that BOS have not CPD me but HFX (and Lloyds) have. Their systems are still separate at the moment (as far as credit scoring goes) so although the same group, you might find applying to another unit within the group helps get applications through. If you bank with Lloyds and have CPD then try and open an account with BOS and the CPD will go (BOS don't use CPD yet)

[Never-In-Doubt]

Re: 0% Balance Transfer

Thanks Niddy

My bank is Lloyds TSB but I don't think they like me very much as I made them remove an old debt from my credit file which had been defaulted over six years ago - now not showing on CRA but I reckon they must take it into account in there own file on me ?

I applied to Virgin (MBNA ? ) yesterday and got turned down :-)

Will take your advice as above.

Thanks as always !
Rich

LTSB can be funny mate, you might have a CPD in which case it can change from month to month - as I say no harm in trying with them but first test the OD system (it's the same as BOS/HFX) so click into overdraft and try and add one/increase an existing one. It will not score or search you so don't worry!

Don't go mad at this stage as it might eat into any pre-approved credit the bank have allowed. So if they allow say £3,000 and you go mad and get a £2k overdraft, there's only £1k left for a CC limit.

If it authorises the small OD increase then apply for a card with LTSB or BOS (this is a good one --> Bank of Scotland | Credit Cards | Bank of Scotland Platinum Purchase Card )

If however it rejects the OD then don't apply to LTSB for a card, instead try Creation Cards

As far as internal systems, LTSB tend to keep internal records for around 10 years so if you had an old account in debt then chances are they might have already CPD you based on internal records (from the past).

** MBNA is one of the hardest to get accepted with and is classed as Prime. Don't run before you can walk

Test it first then we can move forwards.....

[Beefy1976]

Re: 0% Balance Transfer

Well I tried with Santander and it did exactly as you said. Definitely a pre authorised limit set up as I tried £100 and that went through, then tried £1000 and that didn't. The maximum increase it would allow was £900. Like you said, it came up with a message saying I'd exceeded the maximum authorised limit on my account for anything over the £900.

Thanks again for the information, it's certainly interesting to know.

Just waiting now and will apply for the creation card as soon as I'm showing on the electoral roll again.

Cheers,
Beefy.