Abbey Credit Card.

LittleMissMessy

Hi All

New to this site but I got a letter in the post from Abbey National today that made me SO mad I had to come on and ask for some feedback.

Now I don't own a credit card but do own an over draft that I am ALWAYS in. And I mean ALWAYS. I know that I need to change this and I will do with help from this site I hope.

The letter from Abbey today was offering me a credit card (i've not asked for one), came in a bright red envelope with GUARANTEED on it. Inside the letter said there's a credit card waiting for me because 'You've managed you Abbey Current Account so well, we can guarantee you for the card.'

Well, i'm always in my overdraft and sometimes over, how is that GOOD management??

They offer - o% balance transfers until april 2009.
- no annual fee- 0% interest on all purchases for 3 months then its 15.9% APR typical (variable)

So is this a good offer? And should they even be offering this to me as I don't think I handle my money well.

Thanks

LMM

Financial_Novice_2

I was in a similar position a few years back. Had a £1900 overdraft in my current account and always ate into that by about £1500. I used to lift money from my credit card to pay into my current acc to ensure I didn't go over the ODraft and then pay off my credit card from the current account. It's a vicious circle and I wouldn't recomend it. The reason Abbey are offering it is purely because you eat into your overdraft. They think they can make more money out of you.

Don't get the card. Keep things simple and try and live within your means and avoid using the overdraft or at least try and use less each month until you can live without it.

KiKi

Hi, welcome to MSE.

I agree - sort your finances so you can cope better, don't take the card.

However, if you are charged for your overdraft, the offer of 0% BT isn't bad, as you are transferring the debt to a facility that you're then not paying for. However, never, EVER use a card for a balance transfer AND purchases - that's where they'll make the money from you.

(After 3 months, you purchase something, you pay it back at the end of the month. Or so you think. The money you pay off will actually go to your BT first, meaning that to pay off your purchases, you HAVE to pay off the BT in full before your cash starts to eat into the purchase.)

Don't take the card; go to the Debt-Free Wannabe Board on here, post your full SOA (Statement of Affairs) - all your incomings, outgoings and debt in total - and the people there will help you cut back so you can stop eating into your overdraft. There are bound to be savings that can be made.

KiKi

NickX

LittleMissMessy wrote: »

They offer - o% balance transfers until april 2009.
- no annual fee- 0% interest on all purchases for 3 months then its 15.9% APR typical (variable)

Sorry I disagree with the other posters

DO take the card. 0% on Balance Transfers for 12 months is a good deal and will be a darn site cheaper than your overdraft.

Abbey will allow you SBT (Super Balance Transfer) and move funds directly into your Current Account thereby settling your Overdraft facility. Any money left over put into a high rate interest account (up to 6.5% tax free in an ISA for instance) and earn some cash from the Credit Card companys money.

Only things to keep in mind is that you will need to mae minimum payments and remember that you will need to make arrangements to either clear the debt or Balance Transfer it elsewhere before April 2009.

I think its a good deal and would make use of it to tidy up my finances if I were in your position :j

AndytheMan_2

If you do get the card DON'T use it for both balance transfers AND purchases. You'll end up paying a lot of interest as balance transfers have to be paid off first!
You also have to apply a long, long time in advance of when you want it - mine took 5 weeks (Virgins credit card took 1 week)
And don't expect too much in the way of customer service (you'll find out what i mean if you get their card!)

johnny_c-l

NickX wrote: »

Sorry I disagree with the other posters

DO take the card. 0% on Balance Transfers for 12 months is a good deal and will be a darn site cheaper than your overdraft.

Abbey will allow you SBT (Super Balance Transfer) and move funds directly into your Current Account thereby settling your Overdraft facility. Any money left over put into a high rate interest account (up to 6.5% tax free in an ISA for instance) and earn some cash from the Credit Card companys money.

Only things to keep in mind is that you will need to mae minimum payments and remember that you will need to make arrangements to either clear the debt or Balance Transfer it elsewhere before April 2009.

I think its a good deal and would make use of it to tidy up my finances if I were in your position :j

Agree with NickX. Just make sure you're disciplined with the card....it's not free money!

dhassen

it's a good offer, but there are better cards out there, with better offers.
Abbey have just increased my APR too, from 15.9 to 19.9 - careful, because this might happen to you.

seasidepom

A little bit off topic, but I see on here so many times people saying never ever spend on a 0% BT card. I took a card out with Barclays and the ruling there was that there was no interest on the balance transferred PROVIDED I spent at least £50 per month. During any month I didn't spend £50, the balance would accrue the going rate of interest. The balance would be paid off before any spend so the £50 per month was accruing interest until the BT was paid. This wasn't made clear before I took the card out but the balance was paid off pretty fast so no great harm done and it still worked out cheaper than taking out another 0% card and incurring a transfer fee.

So really what I'm saying is you can't say never spend on a BT card because sometimes they MAKE you. And make certain of the ts&cs so you don't get caught like I did.

dhassen

never heard of anything like that seaside...... doesn't sound like a great deal to me!