best option for me please? overdrawn

danielb_2

Hi,

ive heard quite a few of martin's speaches on the radio and tv saying that its best to shift all the money you have overdrawn onto a credit card, as long as you dont use it. Im currently £900 overdrawn with natwest and £200 overdrawn with the bank of scotland.

If i wanted to clear them over drafts and put them on a credit card what would be the best option for me please? 6months and under would be ideal.

Thanks alot,
Daniel

JustJewels

hi danielb

Welcome to MSE, and congrats on your first post.:beer:

The answer to your question depends on a few things;
- do you intend to repay the full £1,100 in six months?
- what interest rate are you paying on your overdraft at the moment?
- what's your credit history like?
- it's not usual for banks to let you transfer an overdraft to a credit card directly - there are ways round this but you've got to be disciplined so you don't end up with a overdraft AND a credit card balance

Below are a couple of links to browse to help you understand your options

http://www.moneysavingexpert.com/loans/Interest-free-short-term-loans
http://www.moneysavingexpert.com/cards/lowest-interest-credit-cards

Best of luck!

JJ

danielb_2

JustJewels wrote: »

hi danielb

Welcome to MSE, and congrats on your first post.:beer:

The answer to your question depends on a few things;
- do you intend to repay the full £1,100 in six months?
- what interest rate are you paying on your overdraft at the moment?
- what's your credit history like?
- it's not usual for banks to let you transfer an overdraft to a credit card directly - there are ways round this but you've got to be disciplined so you don't end up with a overdraft AND a credit card balance

Below are a couple of links to browse to help you understand your options

http://www.moneysavingexpert.com/loans/Interest-free-short-term-loans
http://www.moneysavingexpert.com/cards/lowest-interest-credit-cards

Best of luck!

JJ

Thank you very much for your reply!

-i intend to pay it off within the next 6 months yes. Ive not had a pay check for a month now and dont get one untill the 20th of this month and that will be minimal so this has set me back.
-im not entirely sure of my interest rate but i know on 900 im paying roughly £10 a month. Is it worth me changing to something else?
-i believe my credit rating is good although im not sure.
- i thought with the credit card then i could transfer say £900 from the credit card to my natwest account which is £900 overdrawn and then that ammount would just sit on the 0% credit card? or have i misunderstood that?

Thanks again for your reply.

GeorgeUK

What you are talking about is a super balance transfer, where instead of doing a BT to another CC, the money can be transferred to your current account.

Wish the search facility was working, but found this thread which lists a few cards that can do this.
http://forums.moneysavingexpert.com/showthread.html?t=595081

A few things i should really point out here.
If you ask for credit, a footprint of their search is put on your credit record. I would advise to have no more than 3 within a 6 month period. Too many searches will damage your credit rating.

If you go to the experian website, you can see your credit report (free). Just cancel within the 30 day period.
If you have no late payments or defaults on your report, your rating will be stronger, but as each bank has its own method for working out a credit score - it really isn't worth paying to see what it may be from anywhere. It also takes into account your income.

If you do get a card, you will only be able to transfer 90%-95% of the limit. There will also be a fee for the BT. Usually about 3%

If you do a BT to a card, DO NOT buy anything with the card. Some people cut it up and put it back in the envelope until it is paid off after they receive it as things can go very wrong very quickly if you spend on the card.

You will need to make a minimum payment of about 3% each month. If you miss a payment, you will lose the 0% rate and probably be paying about 17%. Make sure the first payment is on time and if need be, set up a direct debit to make sure the minimum is paid monthly.