Transferring an overdraft - Virgin Credit card?

Melanie747

Hi,
I'd like to transfer a Nat West overdraft of about £1500, which I am currently paying £25 a month interest on, to an interest free credit card. I a currently paying off about £200 a month on the overdraft so would hope to have it cleared in less than a year, allowing for 'abnormals' like Christmas and birthdays!

In the past (hence the reason for this post) Virgin money has been extolled as the paragon of balance transfer cards.

Does Virgin alow you to transfer overdrafts onto the card, or is this classed as a Money Transfer?

Do any other cards allow you to transfer your overdraft and pay low/no interest for about 12 months?

I'd really appreciate some help from the more savvy peope out there! Thankyou!

Moggles_2

A few rather special cards, including Virgin, will allow you to transfer an overdraft to them, (in other words, transfer cash from the credit card to your current account), at balance transfer rates.

16 months at 0% is currently available to new customers from Virgin. There's a 4% handling fee, but no other charges for the first 16 months

http://uk.virginmoney.com/virgin/credit-cards-v3/

Moggles_2

Provided that you're on the electoral roll at your current address and have a good credit history, Virgin gives online applicants instant decisions and credit limits

IMO, it's best to request your money transfer by phone (as opposed to online). You can do this when you call to activate your 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

ramblingtree

Hi,
My one warning would be from anecdotal evidence (from myself, OH, friends, on here etc) that Virgin have a nasty habit of increasing the rate significantly whenever possible, eg at the end of deals. So I would make very sure that you pay off before the end of the deal so you don't get stung.
Good luck!
x

Moggles_2

ramblingtree wrote: »

My one warning would be from anecdotal evidence (from myself, OH, friends, on here etc) that Virgin have a nasty habit of increasing the rate significantly whenever possible, eg at the end of deals. So I would make very sure that you pay off before the end of the deal so you don't get stung.

Good point.

Hardly a day goes by without someone reporting an interest rate hike from Virgin or its backers, MBNA. 34.9% APR is not uncommon.

Bear in mind that the reason Virgin can afford to lend you money at 0% for 16 months is because, more often than not, customers do not clear the debt and end up paying crippling interest when the promotion period ends. If this were not the case, these 0% offers would have dried up long ago.