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  • FIRST POST
    • rozmister
    • By rozmister 2nd Sep 18, 11:17 PM
    • 661Posts
    • 1,765Thanks
    rozmister
    Using a 0% MBNA credit card to clear overdraft
    • #1
    • 2nd Sep 18, 11:17 PM
    Using a 0% MBNA credit card to clear overdraft 2nd Sep 18 at 11:17 PM
    I have a problem with debt and Im trying to work out the best way to begin clearing it. The most expensive debt I have is a Lloyds overdraft of 2000 which costs me 61 in fees per month. Thats before I start paying it off.

    Using the eligibility credit card calculator I found an MBNA card I was eligible for and their pre-approval system said I would be able to have 15 months 0%. When I did the final stage of the application it said 7-10 days for a decision - is this common? What will be the outcome? I havent even had an email to confirm my application.

    Also I am stupid to then use this credit to pay for everything for a few months allowing my salary to build up in my account clearing the overdraft? I recently got a pay rise and genuinely believe I could clear the card before the 15 months are up. It also seems better to be paying off a debt instead of just covering the charges.
Page 1
    • T-G-C
    • By T-G-C 3rd Sep 18, 2:41 AM
    • 477 Posts
    • 231 Thanks
    T-G-C
    • #2
    • 3rd Sep 18, 2:41 AM
    • #2
    • 3rd Sep 18, 2:41 AM
    I have a problem with debt and I’m trying to work out the best way to begin clearing it. The most expensive debt I have is a Lloyds overdraft of 2000 which costs me 61 in fees per month. That’s before I start paying it off.

    Using the eligibility credit card calculator I found an MBNA card I was eligible for and their pre-approval system said I would be able to have 15 months 0%. When I did the final stage of the application it said 7-10 days for a decision - is this common? What will be the outcome? I haven’t even had an email to confirm my application.

    Also I am stupid to then use this credit to pay for everything for a few months allowing my salary to build up in my account clearing the overdraft? I recently got a pay rise and genuinely believe I could clear the card before the 15 months are up. It also seems better to be paying off a debt instead of just covering the charges.
    Originally posted by rozmister
    Oh dear, those bank charges are not good. To be honest, it is almost as high as a Vanquis credit card on a 2000 balance.

    For the application part, if their pre-approval has provided an offer quote, I can't see the referral having a bad outcome, but it does depend on the final checks conducted through their underwriting team. Some companies will not send correspondence about your application via email until their decision is reached. If you do not hear anything after the 10 days, I would recommend phoning them up to check it out.

    If it is a balance transfer card, it cannot be used to pay an overdraft, however if it is for a money transfer into your bank account, this would be possible. If it is a balance transfer card, then perhaps using it to transfer your other debts (assuming they are credit card related) onto it may ease the pressure for that 0% period, allowing you to focus on clearing the overdraft or vice versa. Remember that clearing debt requires sensible budgeting and spending, therefore do not make decisions which could put you in a poorer position than currently.

    For the best help and advice on clearing your debt, I recommend heading over to the Debt-Free Wannabe section of the forum.
    Advice provided from this account does not consist of any professional knowledge. For professional debt advice, please contact either National Debtline or StepChange. Advice may consist of personal experience, opinion and/or informational sources.
    • Craig1981
    • By Craig1981 3rd Sep 18, 7:21 AM
    • 729 Posts
    • 372 Thanks
    Craig1981
    • #3
    • 3rd Sep 18, 7:21 AM
    • #3
    • 3rd Sep 18, 7:21 AM
    for what you want to do - use card for purchases, then you need a purchase card, not a transfer card.

    what card have you applied for? if it is a transfer card, MBNA will also offer (i think) a money transfer - this will have a charge of around 3-4%. this will then transfer cash to your account.
    • bengalknights
    • By bengalknights 3rd Sep 18, 3:42 PM
    • 4,540 Posts
    • 1,668 Thanks
    bengalknights
    • #4
    • 3rd Sep 18, 3:42 PM
    • #4
    • 3rd Sep 18, 3:42 PM
    Should just point out now that MBNA is part of lloyds group so if they share details might not get the limit you want.
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