Credit Cards to pay off overdraft

smulder1

Hi - i've got an overdraft at the moment on my current account, which is around £1500. I get charged by the bank each month for this overdraft, and it drives me crazy. Is it worth taking out a credit card (i don't have one at the moment) to pay off all the overdraft and stabilise the bank account, and then pay off the credit card month by month? I don't know enough about the credit cards that are out there, but i see these 0% interest adverts all the time, and i wondered if this was a good way to avoid paying any more than i have to.

Has anyone done this? Is it a good idea, or am i best trying to just save over time in the current account to regain an even keel?

grumbler

You need a card that allows Super transfers

Deru

The 0% balance transfers are for Credit card to Credit card transfers.

There aren't as many that will let you transfer an OD to a card.

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

Virgin one seems to be top.

smulder1

I guess i'm not looking to directly transfer the balance to the card (not sure if that's how it works) - more about using the card to pay the bank, and then paying off the card month by month, as if paying off a large bill. Is that not feasible? Or is it a bad solution?

grumbler

smulder1 wrote: »

...more about using the card to pay the bank,

:huh:
It's a bank, not a shop.

bigadaj

If you haven't got a card and potentially little credit history then you may not get a 0% offer immediately, though could try for a zero purchase card. This would allow you to put normal shopping onto the card, pay the minimum fee every month and allow you to pay the overdraft off from your salary. The money would need to be repaid at the end of the deal which you'd need to consider or plan for.

If you could only get a normal card then you could use this as you get up to 6 weeks credit for free, so long as you you pay the balance in full by the due date. This would give some breathing space to allow the overdraft to be paid down and reduce fees and charges, and potentially get into a virtuous circle. This woud, agin need self control in spending though.

omgimcrap

hi,
i've just got the MBNA Fluid card which i think allows you to do this.

Ive just posted a similar question. Will let you know for sure.

redpete

smulder1 wrote: »

I guess i'm not looking to directly transfer the balance to the card (not sure if that's how it works) - more about using the card to pay the bank, and then paying off the card month by month, as if paying off a large bill. Is that not feasible? Or is it a bad solution?

If you transfer the OD balance to a 'super balance transfer' credit card then you are effectively paying the bank from your CC. You can't just go into a bank, put the CC into a machine and pay them £x.

izools

As stated, you need an MBNA backed card to do a Super Balance Transfer - MBNA will transfer the funds into your current account and then you would make monthly payments to MBNA and no interest would be charged during the 0% period.

Never ever ever take cash out of a credit card however as there is no 0% period and the charges / rates are massive.

You may find difficulty obtaining an MBNA card with little credit history, if they do decline you just reduce your actual overdraft limit a little each month, even if it's only by £50, to ensure you're actually paying it off.