overdraft clearance

trish_thompson

can I use a balance transfer credit card (0% for 17 months) to clear my overdraft?

redpete

trish_thompson wrote: »

can I use a balance transfer credit card (0% for 17 months) to clear my overdraft?

You need a card that will allow you to transfer a balance to a bank account - Super Balance Transfer card I think it is called in the info on MSE.

thenudeone

Or one that offers credit card cheques (usually charged a 3-4% fee and treated as a cash advance for interest purposes)

YorkshireBoy

trish_thompson wrote: »

can I use a balance transfer credit card (0% for 17 months) to clear my overdraft?

I assume the card is either Halifax Plus, Nationwide, or Santander?

If so, the answer is no...not with the card you have.

The cheapest option is probably M&S via the travellers cheque loophole (1% fee for 15 months 0%). Not all banks will accept them FOC though. Who do you bank with?

And, crucially, have you addressed the reasons for the overdraft existing in the first place? Because if you haven't, you're on a slippery slope and the credit card could make things far worse!

trish_thompson

I was left in a lot of debt by ex husband, , I have been in full time employment now in a good job for 7 years now, and have cleared all debts bar my overdraft. have banked with Santander since 2001 and want to change. I have opened a natwest acc and they have approved a credit card with 3000 limit (same as my overdraft) o% on balance transfers just not sure if clearing my overdraft would count as a balance transfer or a cash advance and just want to clear the overdraft so I can get my salary paid into my new acc.

YorkshireBoy

Whilst you could do a money transfer from the NatWest card into your NatWest current account, it probably won't help because...

1. The 'advance limit' (the amount you're allowed to owe via cash transactions) is likely to be 50% of your credit limit...so only £1,500, and

2. Such a money transfer would not be at 0% interest (although it would be fee-free), it would be at your purchases rate...so around 16.9% APR.

You therefore have the following options...

1. Get an MBNA run card and make a super balance transfer (0% on money transfers for up to 18 months for a 4% fee), or

2. Get any old BT card, make a 50% money transfer from NatWest, and BT this debt to the new card. Carry this out twice and you have your £3K overdraft debt on 0%, or

3. Get a long 0% on purchases card and spend your way out of your overdraft. Put all your purchases on it and pay off your overdraft with the money you would have spent on your debit card, or

4. Get an M&S card and use their Sterling TC loophole to grab cash for 15 months 0% for a 1% fee.

Finally, there's always a chance Santander will pull the overdraft facility if they see you're not crediting the account monthly (ie once you've transferred your salary to NatWest). You may wish to continue to cycle funds through it each month to try and avert this action by them.

Good luck!