??? Clear overdraft with credit card????

taylor1137 · 7 July 2010 at 12:57PM

I have a over draft with the Nat west for around £1500. I am paying £50 a month to clear the debt but getting charged around £28 so it is taking ages to clear and making my credit rating bad. I have asked my bank to put it on a credit card ( free balance transfers one) but they said you cant do that. I don't know if I can get a card with someone else and do the balance transfer! This is getting annoying paying this interest every month. Thanks for you help on this matter.

BigCraigJohn · 7 July 2010 at 1:01PM

I think its whats known as a super balance transfer. I know Egg will do it. However not sure what the best idea is as you are going to likely pay interest on it regardless.

Tixy · 7 July 2010 at 1:03PM

You coudl do this if you were able to get a card that allows money transfers - known as super balance transfers these would allow you to pay money straight to your current account for a 3 or 4% fee but then be interest free for typically 14months. http://www.stoozing.com/sbt.php

That said if you only pay off £50per month you are likely to still owe 700 or so after the 0% finishes and could then be paying an even higher APR.

However as you say your credit rating is bad then depending on what you mean by that you may well not get accepted for a SBT card. If you have recent late payments/missed payments or have defaults etc then you almost certainly will struggle to get a new card at a better rate than you overdraft.

If thats the case then you need to look at reducing some other costs/expenditure to increase the amount you can repay to the overdraft each month.

Mikeone · 7 July 2010 at 1:03PM

Is it an authorised OD? if it is and you're within your limit, it will actually help your credit rating as long as you stay within your limit and make regular payments.

An overdraft is an entirely different product to a credit card, so I am not surprised that they wouldn't let you transfer the balance.

If you want to get rid of the OD and find it difficult, one possible solution is to open a separate account and use the new one for your current account needs. Set up a Standing Order to pay into the overdraft account and do not use it for any other purpose. That way, you can manage your finances on a day-to-day basis while working your OD down.