Getting a credit card to pay off overdraft?

guapagirl

Hi, hoping someone can help me out here.

At the grand old age of 52 I have managed to never own a credit card (hence my financial illiteracy and the possibly stupid question).

Anyway, we inherited some money and bought a flat with the cash. It needed a lot of work doing and stupidly, I accidentally used my current account to buy the kitchen when I intended to take advantage of the 0% finance on offer. It has left me overdrawn even at the beginning of the month.

I still need to pay for some other work to be done and I was wondering about getting a credit card on 0% for 30 months to bring my current account back into the black?

I know I could get a personal unsecured loan as I've had one in the past, but I want to minimise the interest as much as possible.

I've read that using credit cards to withdraw cash will incur charges, but what I'd like to do is shove £3k from a credit card into my current account. Is this actually possible or will I have to go for an unsecured loan again?

Thanks in anticipation,

Liz

bengalknights

What you need is a money transfer card to do this

Candyapple

Here is the link:
http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

And then you'll need this to check to see if you are eligible:
https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.8272178.1056795922.1496326873-443429819.1496241276

guapagirl

Candyapple wrote: »

Here is the link:
http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

And then you'll need this to check to see if you are eligible:
https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.8272178.1056795922.1496326873-443429819.1496241276

Thank you for that.

The calculator says I'm pre-approved for a Virgin card, which has a fee of 2.9%. I'm assuming that is a one-off fee, so if I borrow £3k, that would be a fee of £89 and a minimum repayment of £84pm over three years?

I want to be sure because I don't want to find I'm suddenly taking on more than I can afford to pay back.

The other question, is how do I get the money from the card into my bank account? Is it online or do I have to ring up?

Thank you for putting up with what are probably really obvious questions!

SHill

You will not know how much you will get.

They will assess your details once an application goes through....and even then you cannot use 100% of your limit.

Look at the links the others have advised

Please a word of caution dont assume you will get what you need!
The eligibility credit card search should only be used as a guide as people circumstances do vary. You know this when you are applying for a card.
You might get the credit card you need/want/like but please bear in mind that you may not!
Oh and don't assume you get the length in months either . .
Check your credit report Noddle or somewhere like Experian...Noodle is free to use ..
So you know where you stand with your credit history...too this will not cause a footprint on your credit search.
Always consider using credit card wisely and remember to set up a direct debit to pay at least the minimum each month.

YorkshireBoy

guapagirl wrote: »

The calculator says I'm pre-approved for a Virgin card, which has a fee of 2.9%. I'm assuming that is a one-off fee, so if I borrow £3k, that would be a fee of £89 and a minimum repayment of £84pm over three years?

You could pay £84 per month (but you'd need to up it for the final payment!), but why the rush to repay when it's 0%?

The min payment is 1% plus interest, but since interest is 0% then the min payments start out at £30.89 and reduce each month with the falling balance. So make the minimum for 35 months and then pay the lot off in month 36.

D_M_E

If it was me and I got the 3000 at 0% over 36 months then I would set the direct debit/standing order to pay £88.20 for 35 months to ensure that it gets paid off within the term - you never know, something else might want paying before the period is up and if so it would be very tempting to use any accrued savings for whatever event instead of the intended purpose of paying off the balance.

The 2.9% fee is usually a one-off and is £87 on £3000 and is added to the £3000 - look at it as an extremely low interest charge.