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    • Mr Baines
    • By Mr Baines 5th Feb 18, 9:11 PM
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    Mr Baines
    0% or low rate credit cards
    • #1
    • 5th Feb 18, 9:11 PM
    0% or low rate credit cards 5th Feb 18 at 9:11 PM
    Evening all I'm looking at 0% or low rate credit cards, am I able to apply for one then, pay off an unsecured loan with it, to make better use of the lower interest rate, or would it have to be s purchase to qualify for the low rate
Page 1
    • Nile
    • By Nile 5th Feb 18, 10:08 PM
    • 14,257 Posts
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    Nile
    • #2
    • 5th Feb 18, 10:08 PM
    • #2
    • 5th Feb 18, 10:08 PM
    Hi, we move threads if we think theyll get more help elsewhere (please read the forum rule) so this post/thread has been moved to another board. If you have any questions about this policy please email forumteam@moneysavingexpert.com.

    Ive moved your thread from the I wanna board to the Credit Cards board, where it is better suited.

    Regards

    Nile
    Hi, I'm the Board Guide on the In my home (includes DIY) and the I wanna buy-it or do-it boards which means I volunteer to help get your forum questions answered and keep the forum running smoothly. However, do remember that Board Guides don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com. It is not part of my role to deal with reportable posts. Any views are mine and are not the official line of moneysavingexpert.com.

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    • zx81
    • By zx81 5th Feb 18, 10:10 PM
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    zx81
    • #3
    • 5th Feb 18, 10:10 PM
    • #3
    • 5th Feb 18, 10:10 PM
    You'd need a money transfer option to clear a loan.
    • Kim_13
    • By Kim_13 5th Feb 18, 10:27 PM
    • 1,902 Posts
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    Kim_13
    • #4
    • 5th Feb 18, 10:27 PM
    • #4
    • 5th Feb 18, 10:27 PM
    You may find the MSE guide to money transfer cards useful: https://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

    There are 0% options available, but there would be a transfer fee.
    Sealed Pot 11 #520 ~ /100
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    I'm a Board Guide on the Savings and Investments , Budgeting and Bank Accounts , Credit Cards and Marriage, Relationships and Families boards which means I volunteer to help get your forum questions answered and keep the forum running smoothly. Please remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this.) Any views are mine and not the official line of MoneySavingExpert.com
    • nic_c
    • By nic_c 6th Feb 18, 9:06 AM
    • 1,228 Posts
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    nic_c
    • #5
    • 6th Feb 18, 9:06 AM
    • #5
    • 6th Feb 18, 9:06 AM
    You need to contact your loan company and ask about what forms of payment they accept and how they handle over payments. Some will accept payments by CC, if not you will need a money transfer card.

    I was over paying my loan when one month I was asked whether it was a credit or debit card. Once I was aware of that, applied for a BT card, used another card to pay my loan and the BT that across to the new card.

    Things to consider:
    - loans may have an interest penalty applied if paying off early, e.g 1 months interest if under a year left or 2 months if over. You can clarify this with your loan provider. Also check its not a front loaded loan (where interest is added to loan amount at the start, so early repayment doesn't save money).
    - BT/MT cards often have a fee, so what is it, and how does that compare to the loan (e.g. if you have 10,000 balance and 3 years left on a 3% loan you will pay 469-odd interest, if you BT it to a card (or MT into a bank account) that's 0% for 3 years but has a 5% BT/MT fee, you would pay 500 - so costs more via the BT/MT route)
    - another option is a purchase card. If the loan company allow over payments with no penalty, then using a 0% purchase card for everyday purchases and using the saved money to make extra payments on the loan and reduce the term is another, albeit slower, way to transfer debt from loan to card, but no BT/MT fee.
    Last edited by nic_c; 06-02-2018 at 9:09 AM. Reason: adding money transfer options
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