Overdraft

Arian2018

Hi, I have an overdraft of £3,650, and the charges are high each month.

What kind of 0% card can I request to clear it please? Thanks!

Brie

If you have an overdraft and don't have the money to clear it it may be unlikely you can get a new card.  But if you already have a card check to see if there's a 0% money transfer deal possible with it.

And I would suggest you head over to the debt forum and fill out a statement of accounts so people can help you sort out your budget.  If you don't do that then having debt on a card when the 0% offer runs out could be catastrophic.

Arian2018

Hi, thanks. I’ve never been a card or credit, as always pay them back. If I were to apply, which type of card should I apply for? Thanks!

Arian2018

Is it a money transfer card I need? Thanks!

QrizB

Arian2018 said:

Hi, thanks. I’ve never been a card or credit, as always pay them back. If I were to apply, which type of card should I apply for? Thanks!

See the guide here:
https://www.moneysavingexpert.com/credit-cards/how-do-credit-cards-work/

You can transfer the debt directly from the bank account to the card with a money transfer card. There aren't many options for a money transfer cad and they all have up-front fees.

Or, you can put all your day-to-day spending on a 0% spending card, and use the money you would otherwise have spent to pay off your overdraft. These tend to have longer 0% periods and no up-front fee.

But please pay attention to Brie's advice:

Brie said:

And I would suggest you head over to the debt forum and fill out a statement of accounts so people can help you sort out your budget.  If you don't do that then having debt on a card when the 0% offer runs out could be catastrophic.

You need to have a plan to clear your debt before the 0% period runs out.

eskbanker

https://www.moneysavingexpert.com/banking/cut-overdraft-costs/ would be a good place to start, including reference to money transfer cards - you may find that your existing bank, with its view of your finances, might be prepared to offer a card or a loan, but if your credit file is thin then, as above, your options are likely to be limited.

Check your credit files to validate that they're an accurate representation:
https://www.moneysavingexpert.com/loans/check-free-credit-report/

and use an eligibility checker to obtain a rough indication of your prospects of getting a credit card:
https://www.moneysavingexpert.com/eligibility/credit-cards/search/

Brie

Just in addition - persistently being in your overdraft will be obvious to any card provider as they will likely look at your credit history.  Now if you have just been careless and gone into your overdraft but have a salary of £100k and no other debts whatsoever then they may be fine with that.  But if you are paying for any other type of credit - loan, mortgage, monthly installments for car insurance, phone or broadband contract that will also all need to be taken into account.  

So try the eligibility checker and answer everything truthfully for something more accurate than our guesses.  

Good luck - hopefully you'll find a way to sort it all out.

enthusiasticsaver

A money transfer card is what you need to repay the overdraft.  Make sure you clear it within the deal period and do not put further spending on the same card.