Overdraft to Credit Card Balance Transfers

bigbadandy

I've just been given quite a large credit limit on a Barclaycard at 0% for 15 months or 6.5% for life on balance transfers.

My Lloyds overdraft is quite expensive so I was hoping to transfer my £3k overdraft to 6.5% for life, however I have just been informed that if I did decide to do this I would be charged at 27% interest - the same as a cash withdrawal. The rate only apply to transfers from other credit cards.

Having been a bit of a credit card tart in the past, I have a couple of credit cards with a zero balance as the preferential rate has long since expired. Is there anything to stop me transferring the overdraft onto one of my old credit cards briefly, then immediately tranferring the £3k from my old credit card to my Barclaycard at 6.5%?

Have the banks/credit card companies a way of stopping you taking advantage of this?

YorkshireBoy

Check out the replies to the dozens of other questions on the board this last week or so asking exactly the same question.

Hopefully one of your existing cards is an Egg or MBNA card? If not, then the Egg Money card is your best option. See here...http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards#trick

bigbadandy

Hi

Thanks for the advice. I don't have an MBNA card any more I'm afraid I closed these ones down, some time ago.

I have a Lloyds Credit card on zero balance - they keep sending me cheques fo a 6.5%apr for 6 months plus 2.5% balance transfer fee. So if I could use Lloyds I'd have to pay the 2.5% balance transfer on top of the Barclaycard 6.5%, making it slightly less attractive.

I also have an Abbey CC but I have already done one transfer to Barclaycard from here so I'm not sure if I could do another?

I wanted to avoid applying for more credit for the sake of my credit rating, but I guess the best option is to get an Egg Money Card.

Moggles_2

bigbadandy wrote: »

I also have an Abbey CC, but I have already done one transfer to Barclaycard from here, so I'm not sure if I could do another?

Not sure how this would help with the overdraft. I suppose you could settle all your bills with the Abbey card and transfer the balance to Barclaycard. That would free up some funds to clear your overdraft.

Moggles_2

bigbadandy wrote: »

I wanted to avoid applying for more credit for the sake of my credit rating, but I guess the best option is to get an Egg Money Card.

Either Egg Money (to use in conjunction with your Barclaycard) or apply for a credit card which allows you to transfer an overdraft to them, (in other words, transfer cash from the card to your current account), at balance transfer rates.

a card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin), Egg card or the Post Office card have this capability.

Mint periodically issues credit card cheques, which can be paid directly into your current account. Unless you already have them, this is the least satisfactory option, as Mint cheques cannot be ordered and you never know when the next ones will turn up in the post.
Note: other lenders (eg. Barclaycard, Halifax) issue credit card cheques from time to time. These can be used to settle bills, but if you paid one into your bank account, you'd be charged for a cash withdrawal. This may apply to your LloydsTSB cheques too, so check the Ts & Cs very carefully

Which option is best depends, to some extent, on which cards - besides Abbey and LloydsTSB - you have at the mo. To maximise the 0% period, 15 months is currently available to new customers from Virgin. There's a 2.98% handling charge. Alternatively, you'd get 14 months with Egg. Once again, a 3 % BT fee applies.