Should I transfer my loan to credit cards?

Wojtek0605 · 14 March 2017 at 10:56AM

Hi all,

Long-time reader, first time poster.

Let me explain my current situation: I have an outstanding loan with Santander which I am paying just over £220 per month. The loan is only about 4 months old so the total outstanding will still be around £7k. I also have a Natwest credit card which I pay off in full each month, and an MBNA card on which I only make the minimum payment as I have interest free period till April 2020.
I have a mortgage, currently up to date, which helps to make my credit score look better than what it should be. My current employment income however is coming up short to keep up the payments on the loan, credits cards, mortgage, and for everyday expenses. From the end of this year my income should improve as I will be a fully qualified CA.

So I guess my question is: Should I apply for a couple more credit cards like my MBNA one that have long interest free periods, and then use the cash advance on these cards to pay off my Santander loan, and when my income increases at the end of this year, start making additional payments on these credit cards to have them down to Nil before the interest free periods end? I feel like this will ease the cash flow burden in the short term while my income is low, allow me to stay on top of my payments, and then when my income goes up, my expenses go up. So in essence I’m at a constant income where it’s all manageable.

I’ve been thinking about this for a couple of weeks now, but thought I should get some outside perspective. Any advice or comment is appreciated. Have I overlooked something?

January2015 · 14 March 2017 at 1:32PM

There are not many cards that offer cash advances - MBNA and Virgin Money are the only ones I am aware that offer this facility.

This link on MSE may help.

Apart from that I'm not much help with whether you should or shouldn't do this.

EssexHebridean · 14 March 2017 at 1:40PM

Gut feeling is to say no, you shouldn't, but without a bit more information it's really too open a question to give a proper answer to.

First step is to do a Statement of Affairs (SOA) - you'll find the link at the top of this board in the "Sticky" thread there. Fill it in as accurately as you can, format for MSE and post into this thread and we can see where you might be able to make savings that will avoid you needing to open more cards.

MallyGirl · 14 March 2017 at 1:56PM

Wojtek0605 wrote: »

So I guess my question is: Should I apply for a couple more credit cards like my MBNA one that have long interest free periods, and then use the cash advance on these cards to pay off my Santander loan, and when my income increases at the end of this year, start making additional payments on these credit cards to have them down to Nil before the interest free periods end?

Be sure to get your terminology right. Cash advances are expensive from credit cards. What you would need is a money transfer card - MBNA for example.
Your current 0% might be on balance transfers or purchases but taking out cash on these cards (a cash advance) would not be a 0%.

If you can get a money transfer card and definitely pay it off before the interest hits then it would work as an approach

kindofagilr · 14 March 2017 at 1:58PM

January2015 wrote: »

There are not many cards that offer cash advances - MBNA and Virgin Money are the only ones I am aware that offer this facility.

This link on MSE may help.

Apart from that I'm not much help with whether you should or shouldn't do this.

Barcylays and Virgin do as well (I know MBNA is also Virgin but I have both cards)

ETA sorry thought you meant money transfer

Should I transfer my loan to credit cards?

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