How to use credit cards for money transfers
There are credit cards that allow you to do money transfer at 0%.
16:38 31 October 2013
Learn how to transfer money from your credit card to your current account at 0% interest. There’s one surefire method of eliminating your overdraft; which is transferring money to your current account from your credit card. This feature is supported by most credit cards and once the transfer is done, your overdraft can be settled easily.
Credit card companies are known to always charge extremely high interest rates on these kinds of transactions, but there are some other cards which allow you complete the transfer at 0% interest.
However, there are two major differences between these cards and your standard credit cards. They are:
- You are not transferring debts from one card to the other rather; you are transferring money from the card to a bank account.
- Fees for money transfers are usually higher than fees for balance transfer. This is evident from the fact that balance transfer credit cards fees ranges only between 1.5 – 3% while handling charges for money transfer credit cards stay around 4%.
You’ll have 60 days to perform a transfer after taking out a 0% money transfer credit card. For example, supposing you have an overdraft of £2000, you can transfer the whole money to your current account and escape with 0% interest fees for the next 20 months. The only problem you may have with this transaction method is that you’ll be required to pay a certain amount of money when you initiate the transfer. Also, you’ll be required to do the minimum repayment on the card, every month.
Ensure your payment is not late or else your 0% deal is off with immediate effect. Another important factor to note is that if you are not able to repay the debt inside the 20 months period, you’ll then have to pay 16.9% interest except if you transfer the debt into another 0% card. This new card can be a normal balance transfer card and may not offer money transfers.
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