Money Transfer credit card limits

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Hello,

I have 2500 pounds overdraft and I was thinking to get 24 month interest free money transfer credit card to pay my overdraft and then make monthly payments to credit card over 24 month to clear my debt. I am just not convinced that credit card will give me 2500 limit on it. With couple normal credit cards that I have I initially received only around 1000 limit, which is no good in my case. Are the limits on Money Transfer credit cards somehow higher, because they can make money by charging 4% on transfers?
Thank you for your advice.
Regards.

Comments

  • Tixy
    Tixy Posts: 31,455 Forumite
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    No. In fact sometimes the limit on money transfers is lower than the usual 95%/90% of the total credit limit.
    Limits are set based on the risk profiling, not profit based.

    Only a few cards allows money transfers, luckily MBNA cards (one that does) do tend to offer relatively high credit limits.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • lemurs
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    Oh, thank you Tixy!

    I see, I will need to try to apply for MBNA card then and hope I get higher limit. I have Tesco and Halifax cards and they both came initially with 1000 pounds or so, which in my case ain't good.
    Thank you again for your reply!
  • Tixy
    Tixy Posts: 31,455 Forumite
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    Limits are always subject to your financial situation and credit file, but most people who are able to get accepted for a 0% MBNA card would usually get a limit of £2k or more (typically from what I have seen they seem to offer limits from around £5k upwards).

    If you are accepted but with a limit a bit lower than you wanted you could still use it to reduce the OD as much as possible, and then focus on clearing the remainder of it over the next few months?
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
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