Making a balance transfer is normally a very simple process. However balance transfer problems can sometimes occur when a credit card customer is making a balance transfer from one credit card to another.
Balance transfer problems have the potential to bring to a stop any balance transfer that had been requested by a credit card customer.
This interruption of a balance transfer that is in process, can end up losing a credit card customer money. For example, a customer may have to pay higher interest rates rather the 0% introductory rates they were expecting to benefit from with the balance transfer offer.
Balance Transfer Problems
Here at Balance Transfer Expert, the most common types of balance transfer problems that we see UK credit card customers having are as follows:-
Balance Transfer Problems With Card Issuers
There are currently over 70 UK 0% balance transfer credit cards currently available. However some of the credit card companies issue multiple different credit cards using a number of different brand names.
The card companies do not allow a balance transfer to be made when both of the credit cards are issued by the same card company.
So for example, a customer looking to transfer a balance from the M & S credit card to the HSBC credit card, would not be allowed to complete the transfer, because both cards are issued by the same company.
Here at Balance Transfer Expert, we have already done all the hard work of finding out which credit card issuers are behind each and every balance transfer card available.
Our Compare Balance Transfer Credit Cards page, shows for every credit card listed, those credit cards that can not be used to make a balance transfer to that card.
Balance Transfer Problems With Card Numbers
Another common reason for balance transfer problems, occurs with the 16 digit credit card number. When a balance transfer is being made, the new credit card company will transfer funds to your current credit card.
To make the balance transfer the new card company primarily relies on the 16 digit credit card number to transfer the funds. If the card number has been entered into their system incorrectly, then the balance transfer will fail to complete or could potentially end up in the wrong account.
It is therefor vital when requesting a balance transfer, that to avoid these types of balance transfer problems, you ensure that your 16 digit credit card number is entered correctly.
American Express credit cardholders often also encounter these types of balance transfer problems, as their credit card number is only 15 digits long which creates it’s own problem. See our balance transfer from American Express page for details on how to avoid these balance transfer problems.
Balance Transfer Problems With Credit Limits
When you are looking to make a balance transfer to new credit card, you very often will not know the credit limit on the new credit card at the time you request the balance transfer. This credit limit can also create balance transfer problems.
In some cases the credit limit you are given, will be below the amount of the balance transfer you have requested. We have heard of some people creating further balance transfer problems for themselves by then cancelling this new card and attempting to obtain a new balance transfer credit card, with a higher limit.
There is no guarantee, given the current banking climate, that you will be accepted for another credit card and even if you are, then the credit limit may be no larger.
We would always recommend that you transfer what you can. We explain in more detail in this balance transfer tip – transfer what you can even with low limit.
It is also important to remember that most card companies set a 90 to 95% maximum balance transfer amount on how much of the allocated credit limit you can use to make a balance transfer.
So if your credit limit is set as say £3,000 for example, then depending on the card company you will have at most £2,700 or £2,850 available to make a balance transfer.