Have you applied for a new credit card intending to carry out a reasonably large balance transfer. If so, then you may well find yourself happy to have been accepted for your new credit card.
However, you may also then find yourself disappointed with the initial credit limit that you have been given. You may have received a £4000 credit card limit, but want to make a £5000 balance transfer, for example.
In these circumstances, we have heard of people who have immediately cancelled their new credit card. They then proceed to look for different balance transfer credit cards.
However, in the current climate, credit limits are quite often, not as generous as they once were. Offering lower credit limits are often now the default credit card company behaviour. This can apply even for customers with very good credit histories.
Transfer What You Can Even With Low Limit
We would recommend that if you have been given a lower credit limit than you need to transfer the whole balance, that instead of cancelling the card, that you do actually transfer what you can within the credit limit that you have been given.
There is no guarantee that you will be accepted for another balance transfer credit card. This is especially true in the current cost of living crisis, which has reduced credit card acceptance rates. Even if you are approved for a new card, there is again, no guarantee that the credit limit on that new card will be any higher.
In some cases, having just been accepted for a new credit card, this may actually reduce your chances of being accepted for another card, within such a short space of time.
The credit card companies generally do not like to see repeated applications for new credit in close proximity. They may often judge that you are desperate for credit, and as a result therefore judge you to be a higher risk.
Any amount that you can transfer will save you money over the length of the transfer. For example, paying 0% interest for 30 months on £2,000 out of a £3,000 outstanding balance, is still a far better deal than having to pay 23.9% interest on the whole £3,000 balance.
If you cannot get accepted for another balance transfer credit card, then you will be left with all of the debt on the original card, at a high rate of interest.
Read more of the latest balance transfer tips from Balance Transfer Expert.