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Adam Jolley

The credit card to clear your overdraft


A new low-fee balance transfer credit card has been launched by Fluid, which has the added benefit of enabling you to clear your overdraft debt.

credit card in hand

The newly launched credit card by online personal finance brand Fluid, powered by MBNA, allows you to move credit into your current account.

This is called a money transfer and it is especially handy for people wanting to clear their overdraft debt and avoid paying interest.

Fluid charges a 4 per cent fee for the money transfer, but customers are given 15 months at 0 per cent interest to pay back the balance, or transfer to another 0 per cent card.

Fluid credit card customers are also offered 0 per cent interest on purchases for five months from the date the account is opened.

The card’s typical annual rate of interest (APR) is 15.9 per cent.

Good for graduates

The Fluid credit card could be especially useful for recent university graduates.

With last year’s students now one year on from graduation, many will be starting to pay interest on their student overdrafts.

This is because the interest-free period on many student and graduate accounts runs out after 12 months from leaving university.

Not all lenders allow the money transfer option so the Fluid credit card is potentially a good way for former students to save on overdraft fees, as long as they can pay back their debt within the 15-month period.

Balance transfers

For people looking to move outstanding funds from another credit card, the Fluid credit card offers new customers 15 months at 0 per cent interest on balance transfers.

The credit card comes with a low handling fee of just 1.5 per cent and balance transfers must be made within the first 60 days of opening the account.

You cannot transfer balances from other MBNA accounts so this is not an option for existing MBNA customers.

Michael Donald, business development and commercial executive for MBNA, said: "We have developed this credit card, in partnership with the Fluid team, as a direct result of customer feedback.

"We know consumers are looking for interest-free credit but without the higher initial outlay required by some of the more headline-grabbing, longer-term deals available in the UK market."

Apply with confidence

The Fluid credit card has a useful feature that enables you to check if you are likely to be accepted before you fully complete your application.

If you’re likely to be accepted, you can go on to apply.

And if not, you simply don’t complete the application process and avoid the risk of getting rejected, which can harm your credit file as lenders can see credit applications you’ve made.

If you’ve made a few applications in a short space of time lenders are more likely to turn you down as can seem as if an applicant is desperate for credit and may be overstretched financially.

Avoid unnecessary interest

Nerys Lewis, head of credit cards at, said: "This credit card is ideal for anyone who has overdraft debt and is suffering at the hands of high interest charges.

"What’s more, the low balance transfer fee also makes it a good option for people who are looking to get in control of their credit card finances within the 0 per cent period.

"The key is to work out how long you will need to pay back any debt, and perhaps try to avoid the temptation to spend on a balance transfer credit card to avoid unnecessary interest charges.

"One final point to note, new customers could benefit from a 30 per cent discount on Fluid travel insurance — just in time for the summer holidays."


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