Loan advice

raynorp

I have a loan to pay off my daughter's debt (she has a bad credit history) with a well known bank at the rate of 5.5% over a period of 3 years. If I applied for an AMEX or other such card with a low rate of interest for the life of the card just to pay this loan, could I just transfer the balance of the loan from the bank to the card as inb from one card to another.

Rafter

At a rate of 5.5% the loan is ulikely to be flexible so there will be early repayment penalties.

To get money from Amex to your loan (or to a current account to pay off the loan) you need a 'mule' card that allows you to do transfers to bank accounts. The most usual ones cited here are Egg and MBNA, but unless you have an old egg card, you may have to pay 2% for the transfer in fees.

You may be better off getting some 0% purchase cards for all your spending and transferring the money saved to a high interest savings account earning 5% plus instead.

Good luck.

R.

asandwhen

No fee's with egg money to transfer to current account

raynorp

I am grateful for your advice (don't know if this is the way to thank you, first time user)