Experian’s New Service Makes Credit Balance Transfer Easy
05 Dec 2019
Approx Reading time: 3 minutes
- New credit tool helping consumers know whether they qualify for 0% interest credit balance transfer
- Consumers will no longer wait until they finish the application to know whether they qualify for full transfer of credit debt
- Vanquis to be the first to approve requests of consumers using the Experian credit comparison service
It seems the festive season is coming with goodies in terms of credit cards. Recently John Lewis partnership credit card announced boosted rewards for the festive season for credit cardholders. Now Experian has come with a new credit tool that can help consumers in a credit balance transfer.
New credit card comparison tool
Credit reporting company Experian indicates that previously, people used to have challenges switching their debt to a different provider. This was because they could not tell where they are transferring their debt until they finish the application. Interestingly there is a new credit card tool now that will help the customer in switching their debt. As a result, customers will no longer gamble on the transfer of debt to a new credit card. This is because the new service will help them in knowing beforehand if they can transfer the whole amount.
Experian indicates that the new credit tool for credit balance transfers will help consumers in making more informed decisions. This is because of the possibility of knowing the amount they can transfer before applying for the new card.
Minimizing servicing costs with a credit balance transfer
Transfer of credit debt balance can help you minimize the cost of servicing your credit card debt. This is because you are shifting to a low-interest credit card that might be offering 0% APR for some time. As a result of you minimize servicing costs you will save significant amounts of money, and this might help you get out of debt sooner.
Previously consumers could find themselves taking new credit that does not cover their existing debt. Applying for credit leaves an impression on the consumer's credit report. This is regardless of whether the consumer uses the credit card or not. As a result, this could affect the possibility of finding credit as per one's needs.
According to Experian, besides knowing the credit limit, a consumer will get, they also get to know the actual rate. Also, consumers will know the probability of receiving approval before applying for a balance transfer credit card.
Vanquis guarantees consumers using new tool credit transfer
One of the first providers to give a guarantee to customers using the new credit tool is Vanquis. Vanquis indicates that those who will use the new comparison service are likely to have a balance transfer request approved.
According to Amir Goshtai, the Experian Marketplace managing director application of credit cards previously was like a lottery. This is because consumers could not know whether they would receive the limit they wanted. He added that Experian would continue working with partners going forward to enhance the service.
Martyn James, a consumer finance expert, indicated that consumers have been gambling when it comes to credit card balance transfer. This has been challenging because of the concern that they might not qualify for a full balance transfer.