Cash Transfer CC to clear loan

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Shawn76
Shawn76 Posts: 5 Forumite
in Loans
Hi,
Hope this is the correct forum for this post. Last year I took a Virgin Cash transfer card to pay off an overdraft and it was brilliant. 0% interest and over half of the debt is now gone.

My only other debt is a bank loan of which I have 19 payments left at £245 a month. Each month the bank takes £35 of that in interest. (APR 8.4%).
I was thinking it would be great to do the same as I did for the overdraft. But I'm guessing I'd have to get the MBDA card as I already have a virgin one (Next best 0% deal). But I'm thinking I probably won't get the £5k credit limit required to cover the loan??

Would be interested in peoples thoughts. Thanks.

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    That would depend on your income and available credit, amongst other factors.
  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320 Forumite
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    As ZX81 says, no-one can predict what credit limit you'd be offered.


    However, it's probably still worth applying for the card, and use whatever amount you do get offered to throw at the loan - you'll still be saving on the interest you pay.


    A couple of caveats - make sure the BT fee won't negate any savings you make. And make sure that the loan will allow you to make overpayments without any penalty.
  • Shawn76
    Shawn76 Posts: 5 Forumite
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    Is there a way of knowing that? My income is pretty healthy. I suppose I could apply and then ditch the card if the limit was too low.
  • Shawn76
    Shawn76 Posts: 5 Forumite
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    Whats the BT fee?
  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320 Forumite
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    Shawn76 wrote: »
    Whats the BT fee?


    Balance Transfer fee. Most balance transfer cards ( whether it's a card-to-card or card-to-cash transfer ) will charge a fee, which is a percentage of the amount transferred. As a very simple example, if their fee is 1.5%, you'll be charged £15 to transfer £1000.


    There are some lenders who don't charge a fee, but most do.
  • Shawn76
    Shawn76 Posts: 5 Forumite
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    Of course! Thank you.
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