Advice please! I have a loan, and overdraft, should I get a credit card to clear it??

roxblue5

Hi All,

Does anyone have any advice to give me please? I have a loan and an overdraft. Is it wise to get a credit card and pay off the loan and overdraft so that I only have one payment to the credit card every month? I don't currently own a credit card. What do you think?

Thanks so much

R

immoral_angeluk

ONLY if the APR of the credit card would be lower than the loan and the overdraft and ONLY if you don't then use that credit card for purchases as the interest on purchases will be higher than balance transfers and the balance transfers will be paid off first meaning you pay more interest on the purchases.

roxblue5

Thanks for your reply. Yes, absolutely would only use the credit card to pay off loan and overdraft, nothing else. If I get a card that is 0% transfer, and no interest for 12 months or something, that would work?

Many many thanks,
R

rog2

roxblue5 wrote: »

Thanks for your reply. Yes, absolutely would only use the credit card to pay off loan and overdraft, nothing else. If I get a card that is 0% transfer, and no interest for 12 months or something, that would work?

Many many thanks,
R

Yes - but watch the Terms and Conditions and make sure you are not tempted to use the card for credit.

roxblue5

Thanks Rog2, so really just cut the card up once loan and overdraft paid in full so that it's not used for anything else!

Thanks for the advice.

R

ThankYouAndEnjoy!

hello

you wont be able to get a credit card to pay off the loan directly, u will need to obtain a credit card that does a SBT into your current account, and use the cash to pay off. - just so you are aware and dont apply for a c/card that does not meet you needs...

I think Virgin and Egg (amongst others) off SBT, but def check with the card issuer ...

Tabby_Kitten_2

This was what I wanted to do as well, is it just laons that have to be paid off with a SBT? I wanted to use a balance tramsfer to pay off an overdraft.

ThankYouAndEnjoy!

if u b/t into the a/c that is overdrawn, it will clear the o/d by default. you will then need to use the excess cash to pay the loan off ... funds transfer, s/order etc ... make sure when you pay off the loan, you factor in any costs associated to early repayment (if any?)