New to Credit Cards

lcad10

Hi all,

I have never had a Credit Card before but thinking a 0% over 28 months (if accepted). Looking to pay off my overdraft and a store card and then be done with it. Any recommendations? One that I can transfer money off or withdraw from a bank to pay off the overdraft preferably.

Thanks.
Laura

Dobbibill

Hi - welcome to the forum.
To pay off an overdraft you would need a money transfer (MT) card.

Use this eligibility checker to give you a likelihood of acceptance.

https://creditcards.moneysavingexpert.com/?money-transfers

Make sure you also address the reason for using the overdraft so you can prevent it happening again in the future.

lcad10

Would the same card allow me to pay off my store card?

[Deleted User]

A money transfer card lets you put cash into your current account.

From there, you can pay off overdrafts, loans, store cards, drug dealers or anyone else you want.

lcad10

Are there only few Money Transfer cards?

Dobbibill

lcad10 wrote: »

Are there only few Money Transfer cards?

Yes, not all providers offer MT cards.

lcad10

Thanks for your help

18cc

To pay off your store credit card you can of course use a balance transfer card although as mentioned above a balance transfer card would not allow you to pay money to your current account for that you need a money transfer card

MallyGirl

Most store cards cannot be paid off via a balance transfer - that is why a money transfer was suggested

Terry_Towelling

You need to be careful with your plan. Yes, it may help you avoid interest/overdraft charges but there is usually a money transfer fee that will initially increase the debt and then you need to understand the 'monthly minimum payment' calculation used by your chosen card provider.

With an overdraft, you can control the rate at which you reduce it - yes there may be fees for using an overdraft but the affordability you get from having control over it can be quite useful. With a credit card, the minimum monthly payment is out of your control and could be, say, 2.5% of the outstanding balance. You would therefore have no choice but to pay at least 2.5% of the outstanding balance every month.

Being obliged to pay down a debt at a certain rate can be a useful discipline and should ensure you do actually reduce that debt, but, if you cannot keep up with the payments, or meet the minimum required, you could lose the 0% deal and get hit with a default fee.

A final fly in the ointment is the fact that you've not had a credit card before and you currently have an overdraft. These factors may limit your choices of card provider and there is no way of knowing (in advance) whether you would get a high enough credit limit to accommodate both your overdraft and your store card debt

So, you need to do a bit of home work before getting too far down the line. Good luck.