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 and improve your chances of having your application accepted.
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.
On the other hand, comparing cards before you complete an application won’t affect your credit score.
A direct debit for the minimum payment or above can help make sure you don’t forget to make your repayments.
Making late payments could mean 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 clear debt quicker.
If you can, 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.
Money transfer cards are not available through our comparison services. However, you can compare other types of cards such as balance transfer, purchase, cashback and reward and credit builder cards. You can find out which cards you are more likely to be accepted for, based on your credit information - and this won't affect your credit score. Visit Experian to compare credit cards and see your chances of acceptance.
Experian does not give advice on the suitability of products to customers’ needs. If you would like advice, it may be best to seek help from a financial adviser.
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