Balance Transfers Question

shappers82

Hi,

Just a quick question, I'm just trying to get a bit of a control over my finances, so thinking of taking advantage of a promotional rate on one of my credit cards.
I only have a balance of about £500 on one of my Credit Cards, but have a £1000 overdraft, which I am always close to going over on my current account.
My thoughts were if I transfer the balance of my credit card to another (which is offering 0% until Sept 2011 - but is an existing card I have so does not apply to money transfers), could I transfer more than the £500, and effectively put the 1st card into a credit balance? I was then thinking of spending on the credit card (food shopping etc) rather than out of my current account to try and reduce the balance in there.

Is this possible? Is it even worth it?

Your advice would be appreciated.

pinkarsenalprincess

Could you do a super balance transfer instead on a credit card?(MBNA and Virgin) to clear O/D then get your spending in control and pay a regular amount off on the credit card.

shappers82

Thanks for the reply.

The Virgin card is the one I have, that has a promotional rate for balance transfers.
What exactly is a Super Balance Transfer? Is that just transfering money to a current account? If so, I probably wouldn't gain as there is an interest charge that would be incurred on that, whereas if it is just a balance transfer, then I get the 0%.

I took out the Virgin card last year to shift a debt, and I have been paying off a fixed amount per month to clear it. I noticed the other day that I had the offer of 0% on balance transfers until Sept 2011 the other day, and just thought it may be a solution of sorts.

YorkshireBoy

shappers82 wrote: »

I noticed the other day that I had the offer of 0% on balance transfers until Sept 2011 the other day, and just thought it may be a solution of sorts.

The Virgin card DOES do money transfers at 0% interest. There's a fee of (usually) 4%, whereas the card-to-card BT fee is only (usually) 2.98%.

Take a closer read of the offer?

shappers82

I thought that was just for new customers?

The option on the site is just for paying to a credit card, though there is a link on the page to transfer to a current account. The site doesnt give away too much information on the actual page, so was a little unsure if the current account transfer was included in the offer.
Will have a read of the T&C's before proceeding just in case - not too experienced at dealing with my own debts, hence seeking clarity on this!

Thanks for the help though.

izools

Probably best to call them up in that case and ask if they have any promotional rate offers for a super balance transfer on your account.

If not, then your method will work, too, and is worth it, but remember to reduce your overdraft limit by just as much as you put on the card / transfer from Virgin

shappers82

Spoke to Virgin this morning, the promotional rate on balance transfers - 0% up to Sept 2011 - only applys to balance transfers to another card. It does not apply to 'Super Balance Transfers' or a transfer into a current account.

Looks like I will be putting it on my CC then!

Thanks for the advice though people.