Money Transfer Card

chbp

Hi MSE's,


I'm hoping someone can offer a bit of help...


I have an HSBC bank account (advance if that makes a difference) which is currently in it's overdraft by £1600 and paying £20 or so a month to be in it.


I was looking at a 0% Money Transfer Card, to transfer and pay off the overdraft...and therefore pay off the credit card before the 0% interest ends which should be around 22 months.


Has anyone tried this, is it an option or is this idea not allowed...


Thanks guys

[Deleted User]

Yes, it's an option and allowed.

It's more a question of whether you can get the card, with your current indebtedness.

chbp

Thanks zx81,


The overdraft is the only debt I have, my credit check with credit karma is good...i do have another credit card with tesco but nothing on it and anything that was on it was always paid in full. tesco offer the lowest fee so was hoping they'd be my best place

[Deleted User]

Try an eligibility checker to see who may be best to apply to. Living in your OD means you're seen as high risk so the lowest fee option may not be the best.

Credit Karma don't know how lenders will assess you so may be very misleading.

foxy-stoat

Yes, take out the money from the Money Transfer offer on your Tesco card, and make sure you repay it before you start paying interest - or have another card to balance transfer the remaining balance.

Do cancel the overdraft option as well, you dont want to rack that back up again.

chbp

I checked with mbna as these were actually better with fee's than tesco and got a yes (only by checking the soft search),



Up to £4100 and the 0% money transfer will last up to 24 months with a 2.99% fee


So if I went ahead would be right in thinking that £1600 + 2.99% fee / 24 months = £68.72 per month...my balance wold then come down to 0 as long as I dont use the card (I would probably just hide it anyway as I still have my tesco credit card for emergencies). This is purley to clear the overdraft with no intrest.


I'm not missing or forgetting anything

foxy-stoat

chbp wrote: »

I checked with mbna as these were actually better with fee's than tesco and got a yes (only by checking the soft search),



Up to £4100 and the 0% money transfer will last up to 24 months with a 2.99% fee


So if I went ahead would be right in thinking that £1600 + 2.99% fee / 24 months = £68.72 per month...my balance wold then come down to 0 as long as I dont use the card (I would probably just hide it anyway as I still have my tesco credit card for emergencies). This is purley to clear the overdraft with no intrest.


I'm not missing or forgetting anything

No that all looks about right.

chbp

Thanks foxy-stoat,


The o/d would cancelled as the Tesco CC would be for emergancies, it dosent get used that much I think the last time used it was for a car tyre £75 back in september which was pay for the next month in full...


If that £68.72 sum is correct, will it hurt to overpay as and when I get the opportunity

chbp

Sorry I realise thats maybe a bit of a daft question now...I'm just trying make sure this doesnt add any debt - trying to think of everything

maxximus75

You can pay as much as you want, it just reduces your overall balance, quicker.


You are not adding any debt. The only extra thing is the 2.99% fee but you will be saving loads overall by not having the overdraft.


Remember, overdraft fees for people with arranged overdrafts are going to increase a lot next year so you will save a lot of money by doing it, this way.


Remember to ensure you have a directed debit set up to pay at least the minimum each month.

_Chris__2

How about Barclaycard? They're doing some good interest free balance transfer deals.