Small overdraft in bank onto a credit card?

Refund_Queen

Hi,
I have never had a credit card and am a bit confused and am after a bit of advice.

I have a small overdraft (around £900) and I wondered instead of paying interest on that to my bank, can I get a credit card to pay it off? If so, what type of card should I get, a 0% interest card? I could then pay it off over around 10 months so that I do not pay any more interest charges. I have looked at the credit card and loan section on this site and found M&S have 10months % card at the moment. Is that any good?


Any advice welcome please
Thanks

Robert_Sterling_3

Yes. You can apply for a 0% credit card and do what you suggest.
The credit card company may or may not accept your application for a card.
This will depend on your income etc.
You need to be on the Electoral Roll.
Read some of the posts on MSE here to learn more.

CLAPTON

The way to reduce your overdraft by 900 in 10 months is to spend at least £90 less each month or earn £90 more each month (plus whatever intererst you are being charged).

Transferring the debt to a 0% credit card may reduce the interest you are being charged depending upon what your OD APR is at the moment.

However there is real possibility that unless you actively budget to reduce spending you will end up with a new OD and a CC debt.

So I would suggest you seriously look at your budget and address the casues of the OD ..try..
http://www.makesenseofcards.com/soacalc.html

As part of your budgetting exercise, transferring the debt to a 0% credit card can be helpful as you only pay a 3% transfer fee.
However, these card generally only go to people with excellent credit histories. If you have never had a CC then there will be no history of the way you manage your CC debts and so your are unlikely to get one.

The M&S card give 10 month 0% on spending but only 6 months for balance transfers... probably not very suitable for your purposes even if they would give you one.