Can you pay an overdraft off using a credit card

1163sarah

Hi I have never used a credit card before but would like to pay off an overdraft by putting it on a 0% interest credit card as the interest I am paying each month is around £20 a month to my bank. How does this work do I just pay the minimum payment to the credit card and maybe pay a bit extra to try and clear it. Not sure how to go about doing this? Does anyone know the best deals for this just now?

Thanks

Sarah

Ben8282

In order to pay an overdraft using a 0% balance transfer card you will need to find a card which allows you to make a balance transfer directly to your bank account rather than to another credit card. I can't recommend which one but I'm sure somebody else will be able to.

You will then have the money interest free (remember that a fee, typically 3%, will be charged for the balance transfer) for whatever period is stated, after which you will start to pay interest on the balance unless it is paid in full by the last day of the interest free period.

You will need to make the mimumum payment each month during this period. This may be as low as 1% depending on which card you get.

But I think you may have a problem as you say you have never used a credit card before and therefore presumably you don't already have one. Obviously I know nothing of your personal circumstances but , speaking in general terms, I think it unlikely that somebody who has never had a credit card before would be accepted for any good balance transfer card.

There are of course other possibilities. You could try a loan to pay off your overdraft. Taken over a reasonable (but not excessively long) period, the repayments will probably be affordable and, unlike with the balance transfer card, the debt will be paid off in the end.

What sort of amount are we talking about here?

Fruit_and_Nut_Case

1163sarah wrote: »

...I have never used a credit card before...

You may struggle to get a good 0% deal if you have no previous history of handling a credit card.

BlueC

Fruit_and_Nut_Case wrote: »

You may struggle to get a good 0% deal if you have no previous history of handling a credit card.

Yes they may struggle but its by no means impossible. In fact its a bit of a myth as there is much more to it than whether or not you've previously had a CC. For example, my missus had never previously had a CC but applied for and got the M&S 0% one last year with a credit limit of around £5k.

Things like profession, income, other credit history, other current credit lines, financial associates, etc also have a huge influence are not overridden by simply not ever having had a CC before.

1163sarah

Hi there I have had a store card, catalogues and purchased items on credit before never defaulting on payments but I have never had a credit card. Does anyone know of any good deal just now to to transfer my £1400 overdraft onto a 0% credit card.

Thanks for the responses, much appreciated

Sarah

Primavera_2

See this thread....

https://forums.moneysavingexpert.com/discussion/3861749

I think it mentions some suitable cards

1163sarah

Would I be able to make a withdrawal of £1400 cash from a credit card and use this to pay my overdraft or does it not work like that can you only use it to make purchases?

HJFrancis

1163sarah wrote: »

Would I be able to make a withdrawal of £1400 cash from a credit card and use this to pay my overdraft or does it not work like that can you only use it to make purchases?

This is where 0% balance transfer credit cards can be useful. I used one to pay off my overdraft where the interest rate had started to ramp up. Obviously you still have to make repayments every month, but you at least know you're servicing your debt rather than just paying high interest fees.

Find out more here: http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

Ben8282

If you take a cash withdrawal you will pay a cash withdrawal fee plus interest from date of withdrawal at a rate which is probably higher than overdraft interest rate.

Miss_Spendalot_2

Would this work ? If the OP has a credit card already and a spare 0% card, could they withdraw £1400 from the card with the older card and then balance transfer the £1400 over to the 0% card, I know not everybody has spare cards but you never know.