Advice Wanted

psychrai

Hi
I am planning to close a loan with A and L Bank. An amount of 5450 pounds is outstanding.. I wonder whether i could pay this amount using a credit card with a long 0% interest! Is this possible and if so which card would be the best and secondly have others done this before and what are their experiences. Any advice is appreciated.
cheers

NickX

You will need a card with SBT (Super Balance Transfer) capability. This means that you can transfer funds from the card direct to your Bank Account from where you can settle the loan.

Only a few rather special cards have this facility including Egg, Egg Money, Post Office Card and any card administered by MBNA (including the Virgin range of cards).

In addition MINT periodically issue Credit Card Cheques that can be paid into a Bank Account at Balance Transfer rates. However this is the least satisfactory option because the cheques cannot be requested and, unless they are already in your possession, you never know precisely when they are going to drop through your letterbox.

psychrai

thank you Nick
but dont the credit card companies you mentioned charge for the money to be deposited into a bank account?
thanks

NickX

psychrai wrote: »

but dont the credit card companies you mentioned charge for the money to be deposited into a bank account?

Well both Egg and MBNA offer a 0% Balance Transfer deal which includes transfers to your Bank Account. The deal is usually 0% for around 15 months, but Balance Transfer fee of around 3% usually applies.

The Virgin Atlantic White AMEX card offers a 6 month 0% Balance Transfer deal with the fee capped to £50 maximum. This also allows transfers direct to your Bank Account.

You can get funds from a 6 month 0% deal completely free but you need to use a combination of either Ulster Bank or Abbey Zero in conjunction with Egg Money - see Martin's article on the Egg Money trick.