We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
How do I transfer an overdraft to an interest free card ?
freeman32
Posts: 8 Forumite
in Credit cards
How do I transfer an overdraft to an interest free card ? I am close to a £1300 overdraft limit with Smile Bank. I have no credit card debts. I am paying off a personal loan also with Smile. I have applied for and been accepted for an RBS Platinum Card with a 13 month zero rate on balance transfers. I'd like to clear the Bank overdraft so I can get cash out of the account and move it to an interest free card. What should I do? Will I have to seek a larger personal loan? Advice very gratefully received! Thanks freeman32
0
Comments
-
No need for a larger loan /overdraft at this stage,unfortunately RBS don't allow Balance transfers into your bank account.
These do (MNBA,Virgin,A&L) MINT egg as well(but it is more complicated)
You can apply for one of these cards and then transfer the overdraft out to your new credit card.
This would still leave you with the RBS card,you can transfer from your second (new) credit card into the RBS card to take advantage of the RBS offer.
Or you can increase your overdraft and stay put.
Read up on Martin's articls on Balance Transfers watch out for transfer fees and handling charges and when the 0% offers are about to end make sure you have another card to transfer your remaining debt to to avoid interest charges.
Once you have a MNBA,Virgin,Mint,A&L card pay off the outstanding amounts and keep the card(these are known as mule cards as they allow you to move money from credit card to bank accounts).A&L I have found are particulaly good at offering further 0% offers once you have cleared your outstanding debts.I am currently approaching 36months @0% with A&L and my ISA's are groaning.Thanks A&L!
Hope that helps.Previously known as Bokken,registered at MSE in Nov 04,computer glich deleted my access but it is fun building up my stars from scratch,again.:D0 -
I've got an Abbey MBNA which i was going to cancel because they moved the payment date earlier so that it sometimes meant I had to pay it before my month's salary came in. So i didn't use it very much for a while... but they keep offering me rate incentives. I'm currently on 2.9% on purchases to Nov so I'm running a balance, it means I can keep up my payments into my ISA and pay for my holiday at the same time, and as I save up to pay off the CC bill in Nov it'll go into a savings account. I'm also planning to use a balance transfer into my current account when I change the car: loans can be awkward if you don't know exactly how much you'll want and then need the money fairly quickly.0
-
Thanks so much for the above advice... I had a Virgin card several years ago which I hadn't used. By sheer coincidence they sent me a new card this morning! I've tranferred money from the new Virgin card to my current account. On doing so by phone I was told that this transfer is at zero interest till March 2008. My new RBS card should arrive in the next few days. As their 13 month zero interest offer runs beyond March 2008 should I transfer the Virgin balance to the RBS Card immediately? How should I set up repayments? I asked Virgin to request my Bank to arrange a Direct Debit for the minimum repayment amount this morning. Is that what I should do for the RBS card once I have transferred the cash? thanks again freeman320
-
Okay so now you have more cards with 0% than you can shake a stick at.
This is where things get interesting,MBNA(Virgin) will only charge you a small amount of the percentage per month say £5 per thousand.This can be very helpful as it allows you to make larger repayments instead of the minimum each month.
RBS minimum amount payable each month will be at a higher rate.
You will need to ask customer services what the monthly payments are going to be each month before moving the debt to RBS.
You should also try your best to avoid minimum payments as this is what the companies want so at the end of the 0% period you may have paid off £200 rather than £200 per month and at the end of the 0% period the companies then start adding the interest on so you will need to move your debt from Virgin to another card at this point.With only a few months remaining on RBS and with transfer fees it would be better to select a new card.
Also try and apply for cards for a particular reason,ie purchases,Balance Transfers etc and kept each card separate for those purposes ie.don't use one card for both purposes as you will incur interest straight away on the balances.
Can you use the RBS card for purchase at 0%? if you can you could save all your normal wages and use the RBS for your day to day spending paying the minimum payment each month and then at the end of the 0% period take your savings and pay the whole RBS debt off leaving earned interest in your savings account and that could be £200 after a year.
good luck.Previously known as Bokken,registered at MSE in Nov 04,computer glich deleted my access but it is fun building up my stars from scratch,again.:D0 -
I may have misunderstood, but...I've tranferred money from the new Virgin card to my current account. On doing so by phone I was told that this transfer is at zero interest till March 2008. My new RBS card should arrive in the next few days. As their 13 month zero interest offer runs beyond March 2008 should I transfer the Virgin balance to the RBS Card immediately?
Presumably you've paid Virgin a (3%?) fee for the current account transfer?
If so, why pay RBS yet another (2-3%) fee to move the Virgin balance to them just a few days later to gain an extra 3 months 0% next year?
Why not wait until next March/April before deciding what to do next?0 -
To be honest I'd keep the money with Virgin for the time being, and apply for a new card in Feb. Keep the RBS or cancel it, as you will.
MBNA cards are worth hanging on to as they do have a habit of offering good deals to existing customers, unlike some other cards which only seem to offer them to new customers.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards