Any reason not to change CC company for 0%/6mths?

milltown

I'm finally getting the credit card off the long finger and looking for better value. There's much better value to be had than the ~16% I'm paying BOI on my Mastercard at the moment. Their own Clear card looks good ratewise but I'm pretty sure they won't let me avail of 0% for 6 months if I transfer the balance from another BOI card. (I did mail them to ask and said I'd be going elsewhere otherwise).

So Halifax looks to have good rates and a similar transfer offer. Is there anything I'm missing? Any reason why I shouldn't switch? Minimum of 5% is paid by DD every month so late fees aren't a concern. Are there any other catches? For that matter, is there any reason not to swap card issuers every 6 months and keep interest on any stubborn balance at 0% ?

Thanks in advance.

halkar

I have applied online for BOI clear card thingy. As yourself I have one of their older mastercards with almost double the interest. There is no reason they should not switch over and move balance to 0% for 6 months. If they make it difficult I would fight my way through it

I do not think you can keep change your card to stay on 0%. I am sure they have something in small print (which no one read) for that.

dotsman

There is a potential problem that you should be aware of. Up to now, many people have being switching credit cards every 6-9 months to constantly avail of discounted/free interest rates. This, in itself is not a bad thing for consumers (and the media can't stop recommending it!). However, it has been noticed, that in many of these cases, people have not being reducing their balance as there is no incentive.

The problem now is, with people losing their jobs/reducing their income, and with banks becoming stricter with their lending, you should plan for the possibility that after the interest free period is up, you may no be able to switch and then be stuck with the high rate (much, much higher than the BOI Clear and AIB Click cards). If you are going to avail of one of these interest free promotions, make sure you have a clear plan of eliminating the balance prior to the end of the discounted period.

There is also one catch that many of these special offers have as well. With some of them, although your transferred balance receives no interest, any new purchases attract the high rate from the start. As all your repayments go towards the original (transferred) balance first, you could be paying for all your purchases at the high rate for some time. Ergo, don't use the card for purchases until you have paid off the original balance!

For me, it would all depend on what your current balance is, and how quickly you intend to clear it. I much prefer the low interest cards as the long-term option.

unclebill98

Also note, that UB/FA have done away with 0% balance transfer. So its only a matter of time before everyone follow suit.

dizzybridie

You should go to www.financialregulator.ie and check out their credit card survey for best rates. NIB, Halifax and PTSB seem to be best value.

dotsman

dizzybridie wrote: »

You should go to www.financialregulator.ie and check out their credit card survey for best rates. NIB, Halifax and PTSB seem to be best value.

Not sure how you are reading that.

According to that website (and it looks fairly accurate to me), the best 3 are AIB's Click, then BOI's Clear followed by NIB.

Jack Bauer999

halkar wrote: »

I have applied online for BOI clear card thingy. As yourself I have one of their older mastercards with almost double the interest. There is no reason they should not switch over and move balance to 0% for 6 months. If they make it difficult I would fight my way through it

I do not think you can keep change your card to stay on 0%. I am sure they have something in small print (which no one read) for that.

i was thinking of applying for the boi clear card also to get the 0% balance transfer deal, ive an older credit card with boi as well, when i rang them
up i was told that the 0% balance transfer on the clearcard is for new customers only! so dont think that works if your already your trying to
transfer from an existing BOI credit card.

One thing to be aware of is the credit limit on a new credit card.
I had nearly 2000 balance on my bank of ireland one with a 6500 limit,

When i got a new halifax credit card to get the 0% balance transfer deal the
credit limit was ony 1200!. which meant i could only transfer up that amount of my balance.

dizzybridie

My apologies..ur right. AIB click seems a great offer actually..may check it out..