Question about CCs

Hell1

Hello everyone:hello:


Apologies if this is a silly question......

I have never had a credit card so don't really know how they work. I have two loans, amounting to £7,000, which I am paying back at about £500 pcm. I can afford this, so its not a problem atm.

My question is, can I get a credit card, pay off the loans and then overpay on the credit card when I have spare cash? Or would I be better off sticking with the loans?

I am getting frustrated that I cant over pay the loans, and I am struggling saving up to pay them off in full.


Thanks

Hell

Mozette

You would need to check the terms & conditions of your loans as to whether it's better paying them off or sticking with them, and it depends how quickly you could then pay off a credit card; if you can pay £500 a month, then if you could get say, the Virgin card with 15 months at 0% (I think capital one might be doing an even better one, but not sure) you should be okay with that. Don't forget to factor in the balance transfer fee, which, with Virgin is 2.98% and you have to pay that in the first month.
They do let you set up a direct debit for any regular amount, as well as the minimum (£25) so you do have the option - if you are disciplined enough - to stooze a bit by paying the minimum and putting the balance into an interest bearing account.
So, depends on the loans, and if you can get the card, but in priciple a sound idea!
All the best