Transferring balance - good idea?

[moneypitt]

Hi,

I have been using a MBNA Gold card for last three years or so, and usually pay off the outstanding by due date. I like them for their travel insurance and payment protection, however, I have never had any use of them yet.

At the moment, after a two week holidays etc, I owe them nearly 4000 euros and I was wondering if its a good move to switch to say UlsterBank Zinc card and and transfer the balance there 9 months (interest free).

Would this effect my credit rating? Also recently I was denied a small loan of 1500 euros (leather sofa, pay after a year etc) - I don't have any other outstanding loans, never denied a loan before, have regular savings and now a recently bought a house on mortgage > 250K. My logic is that the loan was denied a) because the retailer thought I will pay it back in time and no benefit to them, b) the house I bought was rented out and have gardii calling in for previous tennants - for various crimes etc..

Curious to know if its worth switching, as I can't afford to take any more bad points on my credit rating.

thanks for reading!

 

[ClubMan]

Re: transfering balance, good idea?

I like them for their travel insurance and payment protection, however, I have never had any use of them yet.

Are you sure that the travel insurance offered is full travel insurance and not just basic "in transit" insurance? What I mean is don't assume that it is a replacement for a separate travel insurance policy. It may not be! Similarly why do you like the payment protection? Such policies often cost a lot and only pay out in very restricted circumstances and for limited periods of time. Check the terms & conditions of the policies to make sure that the cover is up to the standard required!

At the moment, after a two week holidays etc, I owe them nearly 4000 euros and I was wondering if its a good move to switch to say UlsterBank Zinc card and and transfer the balance there 9 months (interest free).

If you would pay 0% on the balance by transferring rather than whatever the normla rate is by sitting tight then it seems like a no brainer (allowing for the fact that you may need to time the transfer from one card to another etc. to avoid a double stamp duty charge of €40).

Would this effect my credit rating?

Switching won't as far as I know. Having an outstanding balance may not either.

Also recently I was denied a small loan of 1500 euros (leather sofa, pay after a year etc) - I don't have any other outstanding loans, never denied a loan before, have regular savings and now a recently bought a house on mortgage > 250K. My logic is that the loan was denied a) because the retailer thought I will pay it back in time and no benefit to them, b) the house I bought was rented out and have gardii calling in for previous tennants - for various crimes etc..

Have you checked your records to see if you have any black marks?

Curious to know if its worth switching, as I can't afford to take any more bad points on my credit rating.

Quite possible it is. It's not clear that your credit records do contain black marks - you need to check. If you are finding it hard to manage credit card debts then you should consider cutting the card up even if you do transfer.

 

[moneypitt]

Re: transfering balance, good idea?

Thanks Clubman, I will contact ICB.

Could you explain 'timing it to avoid double stamp duty' part again please? My plan was to apply for the Zinc card, once I have it, transfer the balance and then close MBNA. Are you suggesting that I should close MBNA before UlsterBank issues the Zinc card?

thanks again!

 

[ClubMan]

See [broken link removed] on the switching/double stamp duty issue. There are loads of existing threads here on that subject too.