Credit Card Advice Please
jjer
Posts: 1 Newbie
in Credit cards
Hi,
I have about £2.5k of debt, £2k is on a credit card which was 0% until recently and £500 is in an overdraft facility which is free (student overdraft).
Im now starting to be charged interest on my credit card and Im thinking that the best thing to do is to get a new credit card which offers a free balance transfer of these existing debts. Is it possible to also get 0% on transferred balances?
Im really looking for someone to tell me that what Im thinking is correct (and to potentially offer me a suggestion of a card) or to let me know of a better solution.
Thanks in advance
I have about £2.5k of debt, £2k is on a credit card which was 0% until recently and £500 is in an overdraft facility which is free (student overdraft).
Im now starting to be charged interest on my credit card and Im thinking that the best thing to do is to get a new credit card which offers a free balance transfer of these existing debts. Is it possible to also get 0% on transferred balances?
Im really looking for someone to tell me that what Im thinking is correct (and to potentially offer me a suggestion of a card) or to let me know of a better solution.
Thanks in advance
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Comments
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£500 is in an overdraft facility which is free (student overdraft)
Get this idea out of your head. Just because it's a 0% overdraft does not mean it's free. You still have to pay this back, or as soon as your eligibility for the 0% ends, you will be stuck with horrible fees.
As for your credit card, best thing for you to do is get a balance transfer card. I'm guessing you're not employed, so you probably won't be able to get the best deals on the market (even if you're employed part-time, you wouldn't). This means you'll have to get a normal balance transfer card that generally carries a 3% fee.
You can use the MSE Eligibility Checker to see what cards you might be eligible for. Just remember, you can't do a balance transfer to the same lender that currently supplies your CC.Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0 -
Generally it is possible, but depends on many personal factors.Is it possible to also get 0% on transferred balances?
For the overdraft you'll need a card that offers Money Transfers
Alternatively you can get a Spending 0% Card and use the 'saved' cash to repay the overdraft gradually.
In the articles you'll find a 'soft' Eligibility Checker, that is known to be not very reliable though.
You might want to read Credit Scores article as well.
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