Please Recommend Me a Card..

pnq06

Hi All,

I've just had a call from my partner who is listening to Martin on Radio 1 at the mo... He said something about a credit card with only 6.4 or 6.7% interest rate (he can't remember which :rolleyes: ) so can someone help me if they have just heard the article... Which company is it with?

Or is anyone able to help me otherwise, basically we have a £3000 overdraft which is costing us a whopping £40 a month (approx) in interest alone and at this rate we will never be able to pay it off What is the best option for me? Do I get a 0% card and pay my OD off and then change companies when the 0% interest runs out?

I'm so sorry but I am rubbish at understanding anything to do with money and figures I don't even know if what I've said above is a balance transfer *EEK*

Any help very much appreciated...

jimbo26

Try a Virgin Credit card with Super balance transfer. Transfer £3000 from the card to your current account at 0%. I've never done this but there are plenty on the forum that have. Be warned though that MBNA who mange the card are complete f****rs and will probably hike up the interest rate after the 0% deal finishes.

pnq06

Thanks for the fast reply...

So if I took out this credit card- http://uk.virginmoney.com/credit-card-v3/more-info.html and tried to pay it off in 15 months then the total that I would owe would be the £3000 +2.98% handling fee? And if I don't pay it off in the 15 months can I then transfer the outstanding balance to another 0% interest card with a different company? Do I actually qualify for the card as all I want it for is to pay off my bank OD and not to spend on?

Sorry for all the Q's- told you I was rubbish!!!

jonathon_hart

pnq06 wrote: »

Thanks for the fast reply...

So if I took out this credit card- http://uk.virginmoney.com/credit-card-v3/more-info.html and tried to pay it off in 15 months then the total that I would owe would be the £3000 +2.98% handling fee?

Yes

pnq06 wrote: »

Do I actually qualify for the card as all I want it for is to pay off my bank OD and not to spend on?

That depends on your credit score - doesn't matter what you want to do with it

pnq06 wrote: »

And if I don't pay it off in the 15 months can I then transfer the outstanding balance to another 0% interest card with a different company?

Assuming you get another 0% card yes (see above). You probably (depends on which card you go for) have to pay another balance transfer fee at that point.

Jonathon

jimbo26

I have no experience of Super Balance Transfers, but I do know that Virgin do them. I'm sure someone will come along who can give you some practical advice. Your calculations are correct you will only pay the £3000 plus balance transfer fee. If you haven't paid it off by then you will need a new card with a new 0% deal. This time it will be easier because it won't require a Super balance Transfer, just a normal balance transfer.

Whether you get it will depend on your credit rating.

A search of this site reveals that Virgin allow you to move 95% of your limit to a current account. So you will need a credit limit of at least £3158

pnq06

Thank you both for your replies...

Can I pretty please just ask one more question...

Have I got this right? I will need to borrow at least £3158 and transfer £3000 of that into my bank account and then keep the £158 on the card- if thats right would I need to spend that money to get the 0% interest???

So sorry!!!

Thank you

jimbo26

If you had a credit limit of £3158 you could use £3000 of the limit to transfer to your current account, this will leave an available to spend amount of £158.

You do not need to use your entire credit limit to get the 0%. In fact once you've done the balance transfer you should not use the card for anything. You must not miss a single payment otherwise you will come off the 0% deal.

dhassen

has anyone any idea about this 6.7% card the OP was originally asking about though? Sounds interesting

prob be in martin's e-mail if he's bangin on about it on Radio 1 though

pnq06

So I would need to apply for £3158 and pay the 2% handling fee on top?

Suppose I'd better see what the min repayments are each month as I can't afford to put £200pm to clear it within 15 months

Oh how I hate money :rolleyes:

Thank you Jimbo26 you've been great with your help :beer:

pnq06

dhassen wrote: »

has anyone any idea about this 6.7% card the OP was originally asking about though? Sounds interesting

prob be in martin's e-mail if he's bangin on about it on Radio 1 though

Oh yes, and if anyone does know

jimbo26

I may be wrong but I think the minimum repayment is only £5 per month. I has to do with how MBNA calculate the payment. (percentage of the interest or something like that). If I'm wrong then it will be about £60 which is 2%