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Interest rates vs monthly fees

 
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NorthernMonkeyGirl



Joined: 10 Apr 2011
Posts: 4269
Location: Peeping over your shoulder
PostPosted: Wed Apr 08, 15 4:45 pm    Post subject: Interest rates vs monthly fees  Reply with quote    

So I'm paying off an overdraft and a credit card. The OD has a 15/month flat fee. The CC is - I think - 29% APR.

I am thinking that at a certain point it is more effective to live off the credit card to clear the overdraft entirely (i.e. the extra charges at 29% will be cheaper than 15).

Yes?

I'm just having a brain fart about it.

Bebo



Joined: 21 May 2007
Posts: 12540
Location: East Sussex
PostPosted: Wed Apr 08, 15 4:51 pm    Post subject: Reply with quote    

For less than 620 the credit card interest would be lower.

NorthernMonkeyGirl



Joined: 10 Apr 2011
Posts: 4269
Location: Peeping over your shoulder
PostPosted: Wed Apr 08, 15 5:11 pm    Post subject: Reply with quote    

Thank you

(It's one of those days...)

Pilsbury



Joined: 13 Dec 2004
Posts: 5645
Location: East london/Essex
PostPosted: Wed Apr 08, 15 5:13 pm    Post subject: Reply with quote    

Apply for a 0% balance transfer crexit card thst you can do cash transfers on and then trasfer the lot and pay nothing other than the few% transfer fee.
Mbna or barclay card have great offers on long 0% offers.

Nick



Joined: 02 Nov 2004
Posts: 33661
Location: Hereford
PostPosted: Wed Apr 08, 15 5:31 pm    Post subject: Reply with quote    

Santander have a good one too. If you have a current account with them, their acceptance levels drop.

Barclaycard do have an annual fee as well, I think? Both mine are 99.

NorthernMonkeyGirl



Joined: 10 Apr 2011
Posts: 4269
Location: Peeping over your shoulder
PostPosted: Wed Apr 08, 15 5:34 pm    Post subject: Reply with quote    

Ideally yes but my rating won't currently allow that :/
(I tried on a "this card accepts everyone!" recommendation from MSE but even the attempt leaves a footprint so ugh)

Pilsbury



Joined: 13 Dec 2004
Posts: 5645
Location: East london/Essex
PostPosted: Wed Apr 08, 15 5:37 pm    Post subject: Reply with quote    

Have a look on moneysaving, i took 6k on cash transfer card and im earning more in interest in tsb and tesco accounts than the fee, i pay the minimum payentns out of the account and then transfer onto a second 0% rate card when its colse to the end of the offer, shuffling between barclycsrd and mbna i have been doing this for nearly 4 years andcearnjng jntersst on ameone elses money.
My barclaycard platinum is fee free for me but i had an account with them when i got it.

NorthernMonkeyGirl



Joined: 10 Apr 2011
Posts: 4269
Location: Peeping over your shoulder
PostPosted: Wed Apr 08, 15 5:47 pm    Post subject: Reply with quote    

Yeah I know the concept, but my rating's shot.

Pilsbury



Joined: 13 Dec 2004
Posts: 5645
Location: East london/Essex
PostPosted: Wed Apr 08, 15 6:22 pm    Post subject: Reply with quote    

Check whats messing up your rating at www.Noddle.co.uk its free forever and dont sign up to their offers but look at whats actually on you report and then see if you can get a transfer csrd, look into them before applyimv and onlyvapply for a maxkmum of 2, ifvyou get knkcked back work on your rating to try and improve it.
Dont get losds of credit searches on your history but its got tobe worth a punt at one or 2.

sean
Downsizer Moderator


Joined: 28 Oct 2004
Posts: 41682
Location: North Devon
PostPosted: Wed Apr 08, 15 6:25 pm    Post subject: Reply with quote    

I thought that MSE had a 'Can I get this card/deal?' checker/calculator thingy that avoided actually putting an application in? I may have made that up though.

NorthernMonkeyGirl



Joined: 10 Apr 2011
Posts: 4269
Location: Peeping over your shoulder
PostPosted: Wed Apr 08, 15 6:40 pm    Post subject: Reply with quote    

I'm not being funny but I know my financial position, I've used MSE since about 2006, I've used the tools, I've recently risked a credit application and been rejected which damages credit, so my best action is to leave well alone and minimise the cost of doing so.

It probably has something to do with getting ill, losing my job, living on said credit card until I couldn't afford another rent payment, months of unemployment, and a current very low salary.

I wouldn't lend to me right now.

Pilsbury



Joined: 13 Dec 2004
Posts: 5645
Location: East london/Essex
PostPosted: Wed Apr 08, 15 6:48 pm    Post subject: Reply with quote    

No problem, many are no so clued up on the workings of credit scoring and lender requirements so i thought i would post the link, the site is free to use and equivelent to equifax and experian for showing up any problems.

stumbling goat



Joined: 20 Jan 2009
Posts: 1972

PostPosted: Thu Apr 09, 15 5:21 pm    Post subject: Reply with quote    

Do you know of a friend who might be able to help you out with a zero interest balance transfer credit card in their name with you as a signatory? Would have to be a close friend I suppose?

Or with you not even a signatory but just somewhere you can park that debt for now at zero interest as long as you keep making the minimum payment to them?

The debt will not go away, I know that, but it may buy you some time and breathing space.

sg

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