Money transfer cards: effects on credit rating?

MarwiclMJ

At the end of last year I was experiencing some mental health problems which led me to some truly foolish spending behavior. I never defaulted on anything or went over any limits without any permission, but I had to negotiate two emergency overdraft extensions in as many months to be able to pay essential bills.

Now I’ve got treatment, stopped spending, and am working on putting things back together. I’ve developed a six month plan to clear the overdrafts and credit card debt. Part of this involves getting a 24 month 0% balance transfer credit card to which I’ve transferred the card debt to so it doesn’t accrue interest as I’m paying it off.

To my surprise they’ve also offered me the chance to make a 0% cash transfer at a slightly one off higher fee. I’ve worked this out and it’s cheaper than paying off the overdrafts at the speed I was planning to and has the advantage that it gives me some wriggle room if I get some unexpected costs. The spending plan has a small amount leeway on day to day things but it would be good to have the flexibility if, for example, my glasses or laptop break.

My question is: would using the credit card this way do further significant damage to my credit rating? The information from the overdraft extensions hasn’t come through yet, but my file must take quite a hit when they do - I certainly got a stern warning when I phoned to negotiate the second one. I presume the cash transfers count as cash advances even if they are at 0%?

This is particularly relevant as I’m hoping to be able buy a flat in the next couple of years, so would like to be able to limit the damage/rebuild my rating as quickly as possible.

Any advice gratefully received.

[Deleted User]

It's not a problem. It'll just show a card balance.