Pay off loan with 0% credit card
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If you log into your account online are Barclaycard offering any money transfers for you?
I've got a Platinum card which is 0% for purchases and transfers and I've got 0% on money transfers until January 1, 2019 (for a small fee).
It sounds like I may have a similar one to you, if not the same My Platinum card offers 0% on purchases, and 0% interest on balance transfer with a 2.5% fee for 25 months. I took the credit card out just 2 weeks ago.
I believe there is a fee if I complete a money transfer via Barclaycard since I do not recall receiving any email offering money transfers for me. I just had a quick read online, and they have outlined some rough fees on money transfers:
Transfer
At 2.9% your fee would be:
£500 £14.50
£1,000 £29.00
£2,000 £58.00
But if I don't want to incur these charges, am I better off considering the money transfer card via another lender, for example, MBNA/Virgin?0 -
Thanks for your replyI have a Barclaycard and they are currently offering me a 0% money transfer. 0% until July 2018
I'd log into your account and have a look under Offers
I contacted customer services just now to enquire about this money transfer service, and they said it is not yet available to me yet as they'd need to review how I manage the credit card over the next 2-3 months. I've only had this card for 2 weeks, so it's gonna take a while before I am considered for a money transfer offer.
I'm in a bit of a hurry to pay off this Zopa loan, because I don't want to pay more of the interest any longer if I can help it!!0 -
Apply for a Money Transfer (MT) card (after using the eligibility calculator of course). If you get one, forget about the Barclaycard one as it is no use for what you are trying to achieve. Example:
You are approved for [MBNA/Virgin/Tesco] credit card with a MT offer of 0% for 24 months and a 3% transfer fee. Assuming you get a high enough credit limit, simply transfer £3,300 into your current account then pay off the Zopa loan. After incurring the 3% charge for the transfer you will have a balance of £3,399 on your new MT credit card. If you were then to balance transfer over to Barclaycard you would incur another 2.5% fee (another £85) which doesn't make sense as it's wasted money0 -
If you only have a 'couple of hundred' on the Barclaycard and insist you'd prefer to have all your debt in one place, then you could take £3,500 via the money transfer instead and pay off both Zopa and Barclaycard with the cash.
You wll pay a higher fee on the money transfer for doing so, but 3% of £200 is only £6, so might be worth doing for the psychological value. I personally wouldn't bother, and would just prioritise getting the Barclaycard cleared first after the loan has gone.
Remember to always make the minimum payments on the money transfer card otherwise you will lose the 0%, and whatever you do, don't spend on the card - if you don't pay off your balance in full (including the value of the money transfer) you will be charged interest on you purchases.0 -
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Thank you everyone for your guidance and adviceIf you only have a 'couple of hundred' on the Barclaycard and insist you'd prefer to have all your debt in one place, then you could take £3,500 via the money transfer instead and pay off both Zopa and Barclaycard with the cash.Assuming you get a high enough credit limit, simply transfer £3,300 into your current account then pay off the Zopa loan.
I applied for the MBNA card and have been accepted for £2400, however, it seems I can only transfer 95% of the funds, and then there's the 4% handling fee... so with this deducted I have roughly £2100 to pay off the Zopa. The card will be with me in 3-4 working days.
Not sure if I should cancel this and look elsewhere? Is there a way around me getting the full amount of what's needed to pay off the Zopa loan?
Should I wait a couple of months for a Barclaycard Money transfer offer to be made available to me?0 -
Depends how desperate you are to get rid of the Zopa loan. An option which would prove expensive would be to get a money transfer for the maximum (incurring fee), then balance transfer the MBNA balance over to your Barclaycard (incurring another fee), which frees up the balance on your MBNA card to do another money transfer (incurring another fee) which will give you the remaining cash you need to pay off the loan.
With all the fees involved and having two credit card balances at the end I can't really see how this would put you in a better position than you are currently in though...0 -
With all the fees involved and having two credit card balances at the end I can't really see how this would put you in a better position than you are currently in though...
It depends how long the loan has to go - but it would be hard to see all the fees not being better than the 17.5% on the loan.
OP you are running out of options. You are reaching the point where you will have too many hard searches on your file. Cancelling that card would be pretty much the worst thing you could do. You may not get a Barclaycard money transfer offer soon either.
In your place I'd transfer what I could and pay off a chunk of the loan. Then you could apply for another card and hope to get enough to pay off the rest or transfer to Barclaycard and do another MT as sedulous said.0 -
Depends how desperate you are to get rid of the Zopa loan.
I'm guess I am not in desperate need of clearing the loan... because I am paying it off very comfortably. But I just want to get smarter about how I am paying it and not pay any more towards the annoying interest rate without complicating things too much :j0 -
It depends how long the loan has to go - but it would be hard to see all the fees not being better than the 17.5% on the loan.
OP you are running out of options. You are reaching the point where you will have too many hard searches on your file. Cancelling that card would be pretty much the worst thing you could do. You may not get a Barclaycard money transfer offer soon either.
In your place I'd transfer what I could and pay off a chunk of the loan. Then you could apply for another card and hope to get enough to pay off the rest or transfer to Barclaycard and do another MT as sedulous said.
Oh I see what you mean, thanks for the heads up re: hard searches on my file. I did not consider this at all. Please could you clarify what you mean by "applying for another card"? Do you mean another credit card or another MT card?
Just considering the idea of applying for another card is giving me anxiety lol! I do like to have all my finances in one place, which is why I was trying to keep everything under Barclaycard until I was made aware by Zopa that I could not make the payment with a credit card.
I still have a while to go, I took the loan out in June 2017, for £3500, and my total repayable amount will be £4,123.41 at £171.81 per month. I have paid off £873 so far, and currently have £3,264.37 outstanding.
I gave Zopa a quick call too... They said if I am to clear the loan off now-ish, I would be paying just under £3000. Is it still worth going through the hassle of getting the money together, to avoid another £200 of interest? What's your opinion?
Also, I contacted MBNA last night, and they said once my card comes through and my account is activated, I could call up and ask for a "reconsideration request" for the amount I require, and then wait to see what the outcome of that is.
Thanks again0
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