0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (2024)

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CatGuy Posts: 14 Forumite

0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (2)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (3)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (4)

19 October 2022 at 4:31PM in Credit cards

My mum has two balance transfer offers - 0% for 12 months (5% fee) or 4.9% for 36 months (no fee)

At first glance, I'm tempted to say that the 36 month deal is better, but will she end up paying more by the end? Will the monthly payments be higher? I searched for a calculator but couldn't find one.

  • MalMonroe Posts: 5,783 Forumite

    0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (6)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (7)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (8)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (9)

    19 October 2022 at 4:47PM

    How large is the sum she's wanting to transfer?

    I don't think either of those offers are very good, tbh and if I were her I'd be tempted to try paying off as much as I could afford on the card I already had. If she can clear the balance within 12 months, that'd be great.

    If she did accept the 36 month one she would of course have the option of paying it off sooner. The payments should be lower but there's that interest. . . and it's three years. . .

    Is there any possibility that she may be able to find a better offer than those two? They just don't tempt me.

    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.

    See Also
    Best No Balance Transfer Fee Credit Cards Of August 2024Best 0% APR Credit Cards of September 2024 - NerdWalletBest Balance Transfer Credit Cards of September 2024 - NerdWallet13 Best Balance Transfer Cards With 0% APR Of September 2024

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  • Ebe_Scrooge Posts: 7,320 Forumite

    0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (11)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (12)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (13)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (14)

    19 October 2022 at 5:16PM

    CatGuy said:

    My mum has two balance transfer offers - 0% for 12 months (5% fee) or 4.9% for 36 months (no fee)

    At first glance, I'm tempted to say that the 36 month deal is better, but will she end up paying more by the end? Will the monthly payments be higher? I searched for a calculator but couldn't find one.

    If you search for "loan repayment calculator" you'll find plenty online (yes, I know it's a credit card, not a loan, but it's the same difference in this scenario).

    Taking a balance of £1000 as an example, the first one would incur a fee of £50, meaning total repayable is £1050. The second one gives a total repayable of £1075.61. Though that does assume she lets it run its full 36 month course - pay it off earlier and she'll save on interest.

    Also, this assumes that she'll be able to clear the balance by the end of (whichever she chooses) promotion period. Never assume you'll be able to transfer any remaining balance to another card. If you find you can't do another transfer, you'll start paying interest on the remaining balance at the lender's standard APR.


    1

  • pecunianonolet Posts: 1,328 Forumite

    0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (16)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (17)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (18)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (19)

    19 October 2022 at 5:21PM

    Would agree, if there is any opportunity to get approved and debt is not too large I would try Sainsbury or Santander zero fee, zero interest balance transfer cards. Santander allows an eligibility check on their site (soft search) and Sainsbury you can do a soft search on the MSE page.

    I got both yesterday Santander 21 months and Sainsbury 14 months. Will use both for stoozing so a bit of a different use but would give it a go before signing up to any of the above offers, which in one way or another cost extra.

    1

  • CatGuy Posts: 14 Forumite

    0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (21)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (22)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (23)

    19 October 2022 at 6:37PM

    Thanks for the replies. My mum's a pensioner so I don't think there's much chance of her being accepted for a new card.

    Special thanks to @Ebe_Scrooge for the loan calculator tip - it was exactly what I needed

    See Also
    Credit Cards With 0% APR & No Balance Transfer Fees (2020 Update) - Doctor Of Credit

  • Ebe_Scrooge Posts: 7,320 Forumite

    0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (25)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (26)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (27)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (28)

    20 October 2022 at 8:21AM

    CatGuy said:

    Thanks for the replies. My mum's a pensioner so I don't think there's much chance of her being accepted for a new card.

    Special thanks to @Ebe_Scrooge for the loan calculator tip - it was exactly what I needed

    Do remember that when the lenders run their eligibility checks, two (amongst many) of the important factors they take into account are income and current debt. "Income" can be anything - salary, benefits, pension - as long as it's a regular income. So being a pensioner needn't - in itself - mean you can't get a new card 0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (29)

  • Reddleman79 Posts: 124 Forumite

    0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (31)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (32)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (33)

    27 October 2022 at 6:41PM

    Ebe_Scrooge said:

    So being a pensioner needn't - in itself - mean you can't get a new card

    As a pensioner, my bank (NatWest) will not give me a credit card despite having banked with then several years. When I did an eligibility check online, only one provider (Capital One) was interested so I'm with them.

  • Cien Posts: 23 Forumite

    0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (35)0% for 12 months (5% fee) or 4.9% for 36 months (no fee) - which is better? (36)

    27 October 2022 at 10:57PM

    Reddleman79 said:

    Ebe_Scrooge said:

    So being a pensioner needn't - in itself - mean you can't get a new card

    As a pensioner, my bank (NatWest) will not give me a credit card despite having banked with then several years. When I did an eligibility check online, only one provider (Capital One) was interested so I'm with them.

    Thats not you as a pensioner Thats you as an individual.
    I've completed loans for pensioners for several thousands, it's based on income and affordability mostly. Some of it will be credit history, and the remaining part will be internal account scoring.
    Every lender will have its own hidden internal scoring that criteria need to be met.
    Assumptions like this needs to stop because this could really prevent someone reaching out for help and the negativity causing them to bury their head in the sand or ignore it.

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