Top 10 credit myths
A money transfer card is a credit card that enables you to transfer money direct to your current bank account. In many cases this is to pay off existing debts or overdrafts.
It differs from a balance transfer card in that, instead of moving a credit card debt to another card, with a money balance transfer credit card you can shift your existing debt from a loan, for example, onto the card.
Many money transfer cards can be offered with a 0% interest rate promotional period of anything between 6 to 40 months that require a minimum payment to be made each month.
You may have to pay a fee when you transfer your balance onto your new card.
Some simple well-managed forms of credit, like a mobile phone account or opening a bank account, could show lenders that you can pay bills responsibly and on time.
Review your credit report, make sure it’s up to date, and that the information on it is accurate.
From the point of view of impact on your credit profile, it’s worth considering carefully your chances of approval as all credit card applications will leave a mark on your credit report that is visible to lenders, and may reduce your score.
Using a money comparison site like Experian CreditMatcher can help you find out which money transfer credit cards you’re more likely to be accepted for.
If you compare money transfer credit cards before you apply, it will leave a soft search on your credit report that is not visible to lenders, so it won’t affect your credit score.
Setting up a direct debit for a fixed percentage, the minimum payment or above can help make sure you don’t forget to make your repayments.
If you don’t, you run the risk of forfeiting any 0% deal and reverting to a high interest rate.
Paying more than the minimum amount required can help you to clear the debt quicker.
Try not to add to your existing debt while paying off your money transfer credit card.
Try to pay the full amount off before the promotional rate offer ends as after this period the card balance will revert to an interest rate likely to be high.
Experian CreditMatcher uses your credit information - as well as information you provide about your requirements and financial circumstances - to show you products that are matched to you.
This means you can see a list of credit products that you are more likely to be accepted for, and as it is a ‘soft search’ only you can see it on your credit report. For a credit product search that matches your credit information just visit Experian CreditMatcher.
Experian CreditMatcher does not give advice on the suitability of products to customer’s needs. If you would like to get help on which products suit your needs, it is best to seek help from a financial adviser.