Overdraft vs Credit card

[maximo]

Hello. I have had an arranged overdraft with a �500 limit for about 3 months with the royal Bank of Scotland. I used it in full the first time, and have since been almost constantly below 0 on my account -things getting better with time though. Since I get charged for it every month ( a certain fee depending on how much below the limit I am , ie : between 5 and 10 � a month), I was wondering whether I would be better off taking a credit card to pay off my overdraft in full, then make monthly repayment to the CC, considering that my bank has an introductory offer of 0% on purchases for 9 months. I earn 14.5K a year, and have never had any debt before this. My questions are : would a payment to my current account with the credit card be considered a "purchase" ? and would this be a solution for me ( bearing in mind I would not use the CC for anything else )? Also, would they approve me, since I am not a UK citizen, although I have been in constant full-time employment here for 18 months ?

I would appreciate any help with this, as I have never had a credit card in the UK ( I am French, and the system there is quite different ), and I am quite lost on these money matters ! Thank you !

[kazza12345]

paying off an overdraft would not be considered a purchase. You might be better off negociating a loan with your bank, as that will have better rates, and having a fixed term repayment that you can affford

[Oneeyedvic]

Have a look for a credit card with 0% that has a FREE cheque facility. You can then write yourself a cheque and pay it into your account

Whether they would approve you or not depends on a huge amount of factors - could go either way. I'm afraid the only way is to apply.

[spaced]

steer clear of CC's - they are trouble. just slowly pay off your over draft

[stevie21]

would a payment to my current account with the credit card be considered a "purchase" ?

Nope, definitely not : it'd be considered something like a "cash advance" and would probable have a fee as well.

If the cost of the overdraft is the ONLY factor here then the best options that I can think of are to
1. change to a different bank which has a lower overdraft rate or
2. change to a different bank which has an introductory overdraft rate of zero%.

For #2 you'll presumably need to open the new account as part of the process of "switching" from one bank to the other : i.e. explain that you're not JUST a new customer, you're looking for these "switcher" facilities.

e.g. from Barclays, you may qualify for an interest free overdraft for 12 months (or at least 6 months)
http://tinyurl.com/a4ytn

[maximo]

Thank you all so much for your answers ! I guess I was attracted to the credit card option because I keep hearing about it so much here. I'm a relatively careful spender, and I was always reluctant to get one...all the more so now. It's not that my overdraft is not manageable, it's just that I feel a bit uncomfortable owing money in general. I'll call my bank in the morning, and ask them what my best options are ( without falling into the CC trap they'll most likely wanna sell me ! - last time I went to my branch to ask for my first overdraft facility, they asked me if I'd had a review of my account yet ...meaning they probably now consider me as a potential safe debtor ! ). Thanks again.