Credit Card to pay overdraft

Blakey1982

SO it'll cost about £120 to do this and really there's no guarantee i'll get a £3k credit limit. hhhmmmmm

I'm going to have to think about this more - i dont really want more credit and if in 10 months the overdraft costs me about £300 then the benefit is minimal against the risk i suppose.

Moggles_2

Virgin has a reputation for generous credit limits, but there are no guarantees.

With it's market-leading follow-on offers and excellent online services, this card is worth having, IMO, but it's your choice really.

Very best
M

rb10

If you have a Halifax credit card, you can transfer your overdraft to that for no fee.

Blakey1982

hi rb - i dont have a Halifax card - i'm sort of swaying to moving away from them as they havent been the best bank i've been with

Treadmill

You should move blakey, there are less miserly institutions you could take your business to

YorkshireBoy

rb10 wrote: »

If you have a Halifax credit card, you can transfer your overdraft to that for no fee.

I wasn't aware that any of the HBOS cards had 'super balance transfer' capability.

Please could you clarify.

rb10

YorkshireBoy wrote: »

I wasn't aware that any of the HBOS cards had 'super balance transfer' capability.

Please could you clarify.

HBOS's cards don't do this, generally. It's just a concession that they have put in place for those people who have an overdraft on their current account, and will be charged more for this under the new overdraft charging structure. It means that they can effectively switch the debt over to a credit card, and so pay interest at the rate of the credit card, rather than £1/£2 per day on the current account.

It's only for existing credit card customers - not for new applications.

Blakey1982

Thanks rb and Yorkshire

So what you would do in my position?

izools

I think transferring the OD to a Virgin card is a good move.

Yes it'll add £120 to the balance initially, but you know that as long as you clear the balance within 16 months, £120 will be it.

You can't accurately predict how much Halifax will charge you over the course of repaying the OD, and there is always the temptation to use the overdraft once you've chipped a bit chunk away

Atleast if you had the debt on a CC you could:

> Be confident that it'll only cost £120
> Close your Halifax account and move to a more reputable bank, HSBC?
> Cut up your Virgin card to remove temptation and reduce the credit limit on the Virgin card if you feel more comfortable doing so once the debt is clear

And yes, Virgin / MBNA are typically generous with their limits, I think my mother was given an £8,100 limit in 2001 on her MBNA Plat Plus - on BENEFITS!!!

MBNA / Virgin can be a good card company to be with anyway, as they frequently offer low interest / zero interest follow on deals to well established customers

rb10

izools wrote: »

> Close your Halifax account and move to a more reputable bank, HSBC?

Better still, stay with Halifax, and you'll get half of the £120 that you've spent on the balance transfer back within a year!

Once you can clear the overdraft, you'll find that you have a very good account there, provided that you can stay in credit, or are only occasionally overdrawn.