BT from Current Account to CC possible now?

dack_2

Hi all,
In the past it has been possible to obtain a CC that would allow the transfer of a current account balance (overdrawn) to it. Are there any cards available now that allow this? If so what deals are available and what fees can be expected?
Many thanks,
dack

stephane_2

Virgin/MBNA, Post Office, Egg. The fee sometimes vary but around 3% to 4% of the amount transferred

CannyJock

There's a full list of the "super balance transfer" cards on the stoozing site at http://www.stoozing.com/sbt.php (supported by MSE).

dack_2

Thanks for your reply Stephane.

Do you happen to know what the interest rates are for these cards and whether they would be accessible to someone with an average credit rating?

The overdraft I have is with Natwest (Advantage Gold) account and I am hoping to shift the debt to reduce the costs. The current interest rate on the OD (approx £4k) is 18.49% EAR Typical (variable). Also there is a £12,95 cost per month for the account fees. If I transfer the balance the Natwest account will be closed. Am hoping to get a long term low rate rather than having to 'tart' for the next few years.

Thanks

dack_2

Thanks CannyJock, I will take a look.

YorkshireBoy

M&S Sterling travellers cheques (which can be deposited in most bank accounts), when bought with a new M&S card, offer 10 months 0% for a 1% fee.

That's a cheaper option if you know you can settle within the timeframe. If not, then Virgin's 16 month deal may be better...but the fee is higher at 4%.

stephane_2

The cards I mentioned have a 0% offer (virgin offer is for 16 months), but none of them offer long term low rate so if you don't want to tart the other option would be to transfer as much as possible of your overdraft onto another CC and get a Barclaycard which offer 6.3% for 3 years or 6.9% for the life of the balance. Just make sure you get accepted first.

Moggles_2

Do you happen to know whether they would be accessible to someone with an average credit rating?

Well, it depends what you mean by "an average credit rating". There are any number of reasons why someone's credit rating may be less than perfect.

Presumably you have a regular income and you're on the electoral roll at your current address.

Have you looked at your credit reports lately to see what's on there? For help, see page 1 of the *How to obtain credit reports* sticky.

For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide* especially Martin's *Manage and Improve your credit score* article

http://www.moneysavingexpert.com/banking/credit-rating-credit-score#improve

dack_2

Thanks again stephane.

Moggles, truth is it's not for me, it's for my wife. I am currently not working and my wife has recently started a new full time job (started 1st July, employed not self-emplyed) so we were hoping she may be able to get a CC for this purpose. Thinking about it I think her credit rating would be low as she has not worked much until now, all bills have been in my name, the only joint credit we have is mortgage (up-to-date, no defaults) and the overdraft which is in a joint account (recently went over OD limit and received over-limit charges, back within limt now).

We are unlikely to repay the debt in full for two years or so. If this sounds like a no-go, do you have any other suggestions of how we may reduce the costs? Including over-limit charges we have been paying around £100/month in fees the last few months. We expect to be able to repay at a rate of around £100/month initially so was hoping to reduce costs so the balance does get reduced as she makes payments.

Thanks again

Moggles_2

dack wrote: »

Moggles, truth is it's not for me, it's for my wife. I am currently not working and my wife has recently started a new full time job (started 1st July, employed not self-emplyed) so we were hoping she may be able to get a CC for this purpose. Thinking about it, I think her credit rating would be low as she has not worked much until now, all bills have been in my name, the only joint credit we have is mortgage (up-to-date, no defaults) and the overdraft which is in a joint account (recently went over OD limit and received over-limit charges, back within limit now). We are unlikely to repay the debt in full for two years or so.

Please bear in mind that lenders launch these 0% promotions, which are sometimes heavily advertised, to draw in new customers. Often they are flooded with applications and can afford to cherry-pick applicants. That said, the only way to find out for certain is to apply.

To maximise the 0% period, 16 months is currently available to new customers from Virgin. There's a 4% handling charge for money transfers.

http://uk.virginmoney.com/credit-card-v3/

IMO, it's best to request your transfer by phone (as opposed to online), so you can make certain the 0% interest rate will apply. She can do this when she calls to activate her card. There's a dedicated, Freefone number. Virgin allows you to borrow up to 95% of your credit limit. The money arrives in your bank account in about 6 days.

Alternatively, consider the Marks & Spencer &More card (for details, see #6 above)
I mention this one because the marketing seems clearly aimed at ladies

Very best
M

dack_2

Thanks again for your help, exactly what I needed. :beer: