Balance Transfer

L

lucy09

Registered User
Messages
27
Hi,

I currently have 6000 on my MBNA credit card. I have been approved for a 5000 personal loan that I am going to use to pay off the credit card. I also have a new tesco credit card at 0%. Could I transfer the balance of 1000 to the tesco card to avoid paying the interest on the MBNA card
?

Thanks in advance
 
Hi Lucy, I presume the personal loan is at a lower interest rate so then it is a good idea to pay off the higher rate credit card. However what is the limit on the new Tesco cr card? You should transfer to the Tesco card as much as you could pay off in the 0% interest time frame and then use some of the personal loan to pay the rest of the MBNA card balance. You may not need to draw down the full personal loan amount. The reason to do this is to avail of 0% interest on as much of the balance as you can.
Oh and I presume you don't intend to use the Tesco card much (you really shouldn't to avoid getting into higher cr card debt) and so can use the tesco limit fully for the mbna balance.
 
Hey yes my credit card limit is 3000 so that is a good idea thanks for the advice. Yes I dont plan on using tesco card at all, just want to have it incase of emergencies.
 
Hi Lucy,

Just a quick question - I have also applied for the Tesco card. How long were you waiting for approval?
 
I received the contract and approval yesterday by post which is great. Only question is what is the maximum amount of credit they allow? I have read the contract throughly and it states that they set your limit for you and will notify you of any changes to your limit that they may make. I am doing a balance transfer onto this card with a plan to cut up my existing card, but am wary of doing this in case they set my limit just above the balance transfer amount. The contract does not specify what my limit is!

just wondering if this is odd? My current card provider doesnt do this...
 
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