Barclaycard to pay off overdraft

d_pipa

Hi,

Can I pay off my Natwest Graduate overdraft with Barclaycard balance transfer, before overdraft is not interest-free anymore?

Your total agreed overdraft limit of £1,200 will stay the same, but this change means you'll have to pay interest on any amount over £500 at the standard rate of 17.81% EAR.

And how can I calculate 17.81% EAR if I have got -£1200 overdraft on my balance? I tried to google for this, with no success!

Thanks,
Dean

izools

Unfortunately not. The cards that support "Super Balance Transfers" e.g. one to a bank account, and not another credit card are listed here:

http://www.stoozing.com/credit-cards/super-balance-transfers.php

d_pipa

Thank you for your prompt reply.

I will have a look at the link, much appreciated.

Would you able to show me how can I calculate the EAR for my overdraft?

YorkshireBoy

d_pipa wrote: »

Your total agreed overdraft limit of £1,200 will stay the same, but this change means you'll have to pay interest on any amount over £500 at the standard rate of 17.81% EAR.

And how can I calculate 17.81% EAR if I have got -£1200 overdraft on my balance? I tried to google for this, with no success!

Very roughly...

£700 x 17.81% = £124.67

That would be the annual interest charge if you had a static £1,200 balance (first £500 free).

However, most people's balance will fluctuate with credits & debits etc. So you might like to work on a daily basis?...

Closing balance x 17.81% / 365 =


Disclaimer: If 17.81% really is your EAR (it sounds more like an annual non-compounded rate as most EARs are shown as 18.9%, 19.9%, etc), then you'd need to derive the annual non-compounded rate from it in order to be 100% accurate. I assume you're not working to the penny!?

CLAPTON

if you have a constant 1200 and the first 500 is interest free then you pay interest on
1200- 500 = 700

so the amount you pay is approximate 700 x 17.81% per annum
i.e. £124 per annum or about £10 per month


obviously if the OD fluctuates though out the period then you need to work out the interest using a daily rate and the daily balance

guesswho2000

izools wrote: »

Unfortunately not. The cards that support "Super Balance Transfers" e.g. one to a bank account, and not another credit card are listed here:

http://www.stoozing.com/credit-cards/super-balance-transfers.php

Well, possibly - Barclaycard seem to have been going through a phase of offering money transfers to current accounts lately, to existing customers anyway. That said, the offer has disappeared from my online thing now, so depends on which way the wind's blowing!

izools

Ahh yes you are right guesswho2000 Barclaycard do sometimes invite existing customers to do SBTs but it isn't a "Standard" feature of the card like it is with MBNA and some others :beer:

d_pipa

I want to say thank you all for your help, it's greatly appreciated.

I have applied for a money transfer to bank account so hopefully it'll go okay.

Thank you again, this forum is really useful!

izools

d_pipa wrote: »

I want to say thank you all for your help, it's greatly appreciated.

I have applied for a money transfer to bank account so hopefully it'll go okay.

Thank you again, this forum is really useful!

Good luck, let us know how it goes

Frugalsod

Also you would pay interest from day one on a credit card cash withdrawal so would probably not save any money.