Advice on using a Credit Card to clear Overdraft

justcat

I think it's worth going to the MBNA website and looking to apply for a card. They actually have a pre-eligibility checker which will let you know if you are likely to get the car. Also, it's MBNA's own so they would have a better idea if they would lend to you or not.

I suspect though that you may not get the 29 month one - maybe just the 15 month one - but it's worth checking.

Let us know how you get on!

bargainbetty

Please note that not all card providers will let you pay off someone else's overdraft - this may also work against you.

The most sensible course of action does seem to be for her to try to raise her income and pay it back as fast as possible - it might be rough in the short term, but I've held down a second job for a fixed aim before, and it does feel good seeing the debt go rather than just move about!

GeorgeRob

justcat wrote: »

I think it's worth going to the MBNA website and looking to apply for a card. They actually have a pre-eligibility checker which will let you know if you are likely to get the car. Also, it's MBNA's own so they would have a better idea if they would lend to you or not.

I suspect though that you may not get the 29 month one - maybe just the 15 month one - but it's worth checking.

Let us know how you get on!

OK thank you, I will try this and let you know! Even 15 months would be great.

GeorgeRob

bargainbetty wrote: »

Please note that not all card providers will let you pay off someone else's overdraft - this may also work against you.

The most sensible course of action does seem to be for her to try to raise her income and pay it back as fast as possible - it might be rough in the short term, but I've held down a second job for a fixed aim before, and it does feel good seeing the debt go rather than just move about!

Thanks Betty. Yes this is what I was concerned about! I will try to find out.

You are quite right about the income and how to pay it off, but unfortunately she is in a very exhausting job at the moment and works long hours as it is, for absolute pittance! She's a junior photographer in a large photography firm and as she's at the bottom of the ladder so far she has to work a lot, for very little! So a 2nd job is kind of out of the question. She does get the occasional weekend too - for instance she's working this weekend 9-7 both days, which will make for a 14 day straight working week!

GingerFurball_2

bargainbetty wrote: »

Please note that not all card providers will let you pay off someone else's overdraft - this may also work against you.

What he could do is transfer the money from the card into his own bank account, then transfer it to his girlfriend's account.

YorkshireBoy

GeorgeRob wrote: »

I do wonder whether any of the other cards (ie any except the MNBA card which states that it does) allow you to pay off an overdraft with the card.

There are several ways to get cash off a credit card...MBNA money transfers, PO money transfers (although they don't advertise it so you'll have to check their T&Cs to see if they still allow it), Tesco Sterling travellers cheques, etc. You could even take a fee-free RBSG money transfer (although interest charged at your purchase rate) and swiftly BT the resultant debt.


You/she could spend your way out of her overdraft by putting all your combined spend on a 0% on purchases credit card, pay 1% in minimum payments each month and leave the other 99% in her current account. If you're unable to save up before the expiry date then apply for a BT card to switch any remaining debt.


But...this is just debt shuffling/restructuring, not really debt repayment as you're only reducing the debt by £30 a month (the same figure the O/D was costing), unless she's also been bringing down the O/D debt recently? At the end of the day, the best way to tackle this problem is for you both to earn more AND spend less!

GeorgeRob

GingerFurball wrote: »

What he could do is transfer the money from the card into his own bank account, then transfer it to his girlfriend's account.

Good thinking! Thanks.

GeorgeRob

justcat wrote: »

I think it's worth going to the MBNA website and looking to apply for a card. They actually have a pre-eligibility checker which will let you know if you are likely to get the car. Also, it's MBNA's own so they would have a better idea if they would lend to you or not.

I suspect though that you may not get the 29 month one - maybe just the 15 month one - but it's worth checking.

Let us know how you get on!

I've just gone on the MBNA website, and although it says it will do an eligibility check first, I couldn't see any option for it. All there was was the Apply Now button, so we clicked that and started filling it in, and it was as detailed as a actual credit application - and at the end it asked us to give a password so that someone can call her and set it up .. so I think that actually *is* the application process and not just a "soft-search" or eligibility check. Very strange.

justcat

GeorgeRob wrote: »

I've just gone on the MBNA website, and although it says it will do an eligibility check first, I couldn't see any option for it. All there was was the Apply Now button, so we clicked that and started filling it in, and it was as detailed as a actual credit application - and at the end it asked us to give a password so that someone can call her and set it up .. so I think that actually *is* the application process and not just a "soft-search" or eligibility check. Very strange.

https://apply.mbna.co.uk/UKNeoCCapp/entry?sc=1UCMMBNIMB0031D&mc=UCMMBN003LJ

If you click on start now, it does the eligibility check - It says in the blue box on that page. Have you gone through with the full application?

GeorgeRob

Can someone just clarify something for me please? I'm having a blonde moment..

If I open a 0% credit card, and make a money transfer to my bank account, and then maybe transfer that money from my bank account to my girlfriend's account... None of that process is a balance transfer is it? A balance transfer is when you open up a new card, then immediately transfer the balance of another card onto it, right?

So say I open up a £1500 card with 15 months at 0%, and pay off say £30 a month.. in the 13th or 14th month we would then have to apply for another 0% card to do a balance transfer onto, in order to continue paying off the debt.. right?

What if we were refused all applications for the 2nd card? We would then only have paid off £450 of the debt, and would suddenly have the remaining £1050 accruing huge amounts of interest on the 1st card, as it's 0% period of 15 months had ended?

Is this the main risk when playing the balance transfer game?