balance transfers

crimson69

could anybody tell me can you use a credit card balance transfer on a bank overdraft.

YorkshireBoy

Some cards, yes. See http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards#MBNA

...and www.stoozing.com/0fees.php for a list of SBT cards (denoted by a 'red blob' on that table)

Scaredy_Cat_3

I don't know if you can do that directly because the credit card companies usually need a credit card number to pay off.

Could you move things around, like maybe use a credit card cheque to pay off your overdraft and then get another (interest free) card to pay off the first card (although you need to be careful of charges, I think most credit card cheques charge a fee of 2.5% - 3% and then you would pay the same fee again when doing the balance transfer). Might not be worth doing.

NickX

Scaredy_Cat wrote: »

I don't know if you can do that directly because the credit card companies usually need a credit card number to pay off.

Some rather special cards to allow you to transfer funds direct to a Bank Account. This is known as SBT (Super Balance Transfer)

The cards that allow this include Egg, Egg Money and any card administered by MBNA (including the Virgin range of cards).

MINT also periodically issue Credit Card cheques that can be paid into a Bank Account at Balance Transfer rates, but this is the least satisfactory option because the cheques cannot be ordered, and you never know precisely when they will drop through your letterbox.

Moggles_2

Scaredy_Cat wrote: »

Could you move things around, like maybe use a credit card cheque to pay off your overdraft and then get another (interest free) card to pay off the first card (although you need to be careful of charges, I think most credit card cheques charge a fee of 2.5% - 3% and then you would pay the same fee again when doing the balance transfer). Might not be worth doing.

Mint and the MBNA family of cards periodically issue credit card cheques which are charged at balance transfer rates and these could be paid directly into your current account.

Other lenders (eg. Barclaycard, Halifax) issue credit card cheques from time to time. They can be used to settle bills, but if you paid one into your bank account, you'd be charged for a cash withdrawal - not recommended, not unless you have money to burn :eek:

cuteusmaximus

Hello,
My question seems related to this posting.

I'm thinking of buying a new (used) car (~£8000) and the life-of-balance interest rates are sometimes lower than personal loans.
If I open (for example) a "Citi Platinum Mastercard" with 4.9% life of balance, could
I do an £8000 balance transfer to my MBNA card and *then get MBNA to refund me the positive balance so that it ends up in my bank account?*

Also, is there any way to calculate what the monthly interest on such an £8000 balance transfer at 4.9% would be?

Thanks in advance!

Clariman

As well as the 0% BT table that YorkshireBoy gave you the link to above, the stoozing website now also has a table that lists all the SBT cards on their own.

Clariman

YorkshireBoy

cuteusmaximus wrote: »

Also, is there any way to calculate what the monthly interest on such an £8000 balance transfer at 4.9% would be?

Crudely:

4.9% APR is 0.3994% per month

£8,000 x 0.3994% = £31.95


Slightly more accurately:

£8,000 x 4.79% / 365 x n

Where...

4.79% is the annual non-compounded equivalent, and n = number of days in the statement period. So...

£8,000 x 4.79% / 365 x 31 = £32.55 (for a 31 day month)



Acknowledgement: http://www.stoozing.com/mon2yr.htm