Should i do this? HELP advice needed

p0eticjustice

Hi, ok im a student and i have an excellent credit history.

I currently have an overdraft on my student bank account worth £1200 im not being charged interest on it but id would rather clear the balance and close the account asap

I was thinking of opting for the Capital one cashback credit card and then clearing the balance earing £48 cash back rather than earing interest on 1200 in my Alliance and Leicester Premier Direct account am i better off moneywise?


Thanks..

thumshie

To get the debt from an OD to a CC, would need to be done via a Balance Transfer.. This would not earn cashback:

Rebates
You will be enrolled in the Capital One rebate programme. You will receive a rebate of 4% on all purchases you make using your card that are applied to your account within the first three months of your account opening date. You will receive a rebate of 1% on all purchases you make using your card that are applied to your account after the date that occurs 3 months after your account opening date. The first rebate will be payable in the January after your enrolment in the rebate programme and annually thereafter. Each rebate will be credited to your account unless we notify you of another method. No rebate will be paid to you if at that time you are in default under the terms of this agreement. However the amount of that year's rebate will accrue and may be payable in a following year. No rebate will be payable if this agreement is terminated or your account is closed. No rebate will be made in respect of cash withdrawals, balance transfers, or purchases which are refunded by the retailer. We may change the rules of this programme. We will tell you about any change.

moneyuser

I can't see how this is going to work. How are you planning on clearing the overdraft with this card? BT rate is 15% which is bad and purchases is the same which means you would have to pay the balance off each month.

When does the 0% overdraft run out?
Why do you want to close the account if you're already getting 0% borrowing? (it's just like a 0% CC really)

Save yourself a search and if you really do want to clear it, then pay as much off it as you can each month.