Hi,
I've managed to pretty much maxed out my commbank credit card which has credit limit of $8000. Is it wise to apply for another credit that has very low to 0% interest on balance transfer? Should I transfer the whole outstanding balance for only part of it?
I've never done a balance transfer request before so any advice would be greatly appreciated.
the min payment is an interesting point, thanks for bringing it up.
Put it this way: If you are transferring to extend your credit, you are digging yourself in deeper. If you are transferring to get a reprieve from repayment until you can rustle up the money, then it's the lesser evil, to pay less interest for the time being.
Thanks for the input guys. I won't have much trouble paying the $8000, it'll take me roughly 6 weeks to come up with the money. Just that if I can delay paying back for 9mths for the cost of measly som 100bux, I can use that $8000 to do something else.
What i'm more concern is what's my chance of getting the $8000 balance transfer application approved. I believe my credit rating is not too bad, have only 2 credit cards so far with combined credit limit of $10,000. Never default on anything.
It sounds like you want another CC so you can purchase more stuff (and add to your debt).
If it's only 6 weeks, why not just pay off the debt first as you wont incur too much interest?
Have you considered increasing your credit limit, I have increased it when I maxed out my limit. Do it via netbank, I think it is approved immediately.
Yeah I've always wondered whether the amount being balance transferred affects chance of approval. Anyone done it? How much for? Share pls
No, the amount being transferred isn't likely to have much bearing on whether the application is successful or not. Whether they'll give you a limit high enough to cover it is another matter.
Interesting to note in HSBC balance transfer details:
"The interest rate on the balance transfer applies for six months and is limited to the first balance transfer request per account from other store cards or non-HSBC credit cards. After this period, any balance outstanding from the balance transfer will accrue interest at the interest rate for cash advances."
Yeah if you can't pay out the full balance it is good to go for 0% balance.
But be careful not to play this game as you eventually have to pay all the money back.
Look on infochoice.com.au or similar website, see who has longer 0% balance transfer period and who don't charge a fees to actually balance transfer, From memory HSBC charge 2% but have 8 months period.. So if you transfer to HSBC an amount of $8000 you are paying $160 to start the balance transfer.
Also be mindful that you still have to make a repayment of minimum amount due every month.
Another thing most of the lenders, credit card providers actually treat the balance transfer once the initial balance transfer period has expired.
So all in all it is good if you can get ahead of the game in the 6 months or so period and abide by the condition that balance transfer may have e.g. min. monthly payment every month and so on… but if once that honeymoon period expires.. DANGEROUS GAME..
Peace.