(Read time <5 mins)

Hey,

So, I have taken a new line of credit and I didn’t know what I was doing. So it’s been a week now, so I think I can rationalise what’s happened: so here is a mini summary:

This is where you open a new credit card, and transfer your current balance from a different credit card, and that new one has a time period where you don’t get charged interest. They might give you other perks, but the main one is the interest.

I did not achieve my goal to pay off my credit card debt, by October. I actually gained an extra 2k in debt in this time. That’s because of the interest charged on my balance.

I did eligibility checks on credit card providers. These did NOT affect my credit score, but they could tell me if I would be accepted or declined on an application*. I then picked the provider who gave me a low enough interest (for after the 0% time period) AND a long enough 0% period.

*If you apply for a credit card and you’re rejected, THAT messes up your credit. The eligibility check helps you find that out in advanced, to protect you - so always check BEFORE actually applying.

So, I took out a balance transfer card, with 34 months to pay off my debt at 0% interest. If I did this 6 months ago, I would have a £0 balance by now, but at least by June 2026 I will be free. After the 34 months of 0% interest, I will be charged 24%* on any balance, and use that account like a normal credit card account.

*24% was the lowest interest I was eligible for.

I have until August 2028 to have a balance and not get charged interest. So, I’m keeping that credit card until August 2028. Because I can always benefit from purchasing with credit, and having 0% interest, than purchasing with cash OR using my credit card with interest.

It will become a normal credit card, with the 24% interest. I will think about whether I want to close it or not, because closing a credit card deletes the credit history you have built with it, which harms your score (weirdly enough paying off debt does that). I WILL NOT be closing my current credit card, because, that’s my first credit card. That has all my history since 2019. If I closed it, i would lose 6 years of history, and that will make it harder to get loans, a mortgage and even another credit card. So I’ll think about it.

The best way to check what credit cards are available to you, is to use credit report agencies like the big 3: Experian, TransUnion and Equifax. They can tell you, who you are 100% guaranteed to get approved from, and at what rate. But I still recommend doing an additional eligibility check on the credit card companies website, before you apply.

Thanks for reading and I hope you have a great week.

Speak soon,

Rue

Adulting For Life