What is the definition of a balance transfer overdraft and what are the credit cards in 2018 that allow you to make a balance transfer from a credit card to pay off an overdraft?
What is a balance transfer overdraft?
A balance transfer overdraft can be defined as a type of balance transfer, called a money transfer, where you use a 0% balance transfer credit card to pay money straight into your bank account.
A balance transfer overdraft is different from a standard balance transfer between credit cards, where the money is paid directly to a credit card company to clear your outstanding balance.
After the 0% money transfer has cleared in your bank account, you can then use these transferred funds, to pay off any outstanding overdraft that you may have.
When you make a balance transfer to pay off an overdraft in this manner, you can then benefit from the 0% money transfer promotional rate available on the credit card.
This can allow you to effectively pay off your overdraft, with no interest for the length of the 0% balance transfer rate, which in 2018 can be for as long as a year or more.
With many banks such as NatWest, having recently introduced monthly fees for an overdraft as well as the high rates of interest that typically apply, paying off your overdraft with a 0% money transfer credit card can produce big savings.
Balance transfer overdraft to credit card
At Balance Transfer expert we currently have over 85 UK 0% balance transfer credit cards available. However, a large number of the UK balance transfer credit cards which did allow you to make balance transfer overdraft transaction via a money transfer to your bank account have now been withdrawn.
A range of 0% balance transfer credit cards can be seen on our Top 10 balance transfer page.
You will of course still have to repay this balance transfer for your overdraft by making the required monthly repayments to the balance transfer credit card company.
The handling fee charged for a credit card money transfer to pay off an overdraft, as can be seen above, can also be higher than those charged for a standard balance transfer to another credit card.