Balance Transfers and Overdrafts

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Although I have posted a couple of times I am new here, and not exactly sure if this is best suited here or on the Credit Card Forum, but pretty sure someone will inform me soon enough.

Basically, I owe about £1,000 on an overdraft which I am currently paying back at £100 a month. However, my credit card company have written to me today offering me a 12 month interest free balance transfer meaning I can clear the debt off quicker due to saving on the interest. Will take me 10 months to clear rather than the 11 or 12 with the interest on the overdraft.

Now, the question is, can I use the balance transfer cheque they sent me to clear the overdraft, or are these purely to be used on other credit cards or store cards?

I don't want to walk in the bank happy that I am about to wipe the overdraft and close the account only to be shot down by the cashier.

Comments

  • GeorgeUK
    GeorgeUK Posts: 7,737 Forumite
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    I would confirm it first with your bank before doing anything incase they still class this as a money transfer.

    Who is your bank?
    After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91

    Dad Gift 6k ¦ Savings & Inv Tst: £2,500
    Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0

    Total Owed: £2,270 (+6k) 11/08/2011
  • Twinblade
    Options
    The credit card is Barclaycard and the account with the overdraft is with Lloyds.
  • GeorgeUK
    GeorgeUK Posts: 7,737 Forumite
    Options
    I would strongly recommend phoning them before doing anything. Talk through what you intend and ask if it will go through as a balance transfer at 0% or if it is classed as a money transfer.
    http://forums.moneysavingexpert.com/showthread.html?t=383230

    If they can't do that, you may be able to get a new creditcard that offers 0% money transfers as well as BT's - such as virgin.
    After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91

    Dad Gift 6k ¦ Savings & Inv Tst: £2,500
    Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0

    Total Owed: £2,270 (+6k) 11/08/2011
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