Balance Transfer from a Bank Loan

JSMOOTH

Hi Just wondering if anyone could help me? Is there a credit card avaliable atm that allows you to do a balance transfer from a bank loan, interest free?

Im hoping this will save me cash and also bring the time period forward to paying the loan off also it means I can pay more off so months than others

If so does anyone no which card to go for?

Thanks For your help!

J

clio

yes the virgin/mbna card allows you to do a balance transfer to your current account, then you could pay off your bank loan. they do a 0% offer for 15 months.

NickX

Clio is right, MBNA run cards (including the Virgin range, Sony, Alliance & Leicester and MBNA itself) allow transfers direct to your Bank Account.

In addition Egg and Post Office card also allow this.

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 necessarily be requested so, unless they are already in your possession, you don't know when they are going to drop through your letterbox.

JSMOOTH

Cheers For replying Cleo and Nick, so does this mean then that they will transfer money into your account and then it will appear has a a balance on your card and how much do they charge you for doing it? is it just the same as a balance transfer charging 3 percent handling?

and would it be better to pay a massive amount of the loan first with the card, then ask for a settlement figure? will this result in less interest made by the loan company?

thanks for the replys

clio

J.
yeah they will charge a BT Fee @ 2.98% you will pay the fee on your 1st statement as well then all other monthly statements will be at £25

no don't pay it off with card 1st because that will be classed as a purchase and you don't get 15 months interest free with purchases. i would ask for a settlement figure 1st. this is all dependent on you getting a Credit Limit higher than the Loan, Virgin/Mbna are known for giving decent credit limits..

JSMOOTH

Thanks Cleo, basically I owe £3800 on a lloyds loan, well that was the settlement figure when I phoned up today, but what I wanted to do was transfer this card with a shorter time period, as I still owe another 24 months worth of payments and was just wondering if it would work out cheaper by transfering it to a card with interest free, but many dont allow you to do a transfer from a loan? when you said £25 per month what did you mean by that? did you mean thats the minium you have to pay, or the interest for doing such a thing. I only want to do this if it will work out cheaper to?

Thanks for your time
:T

clio

minimum payment is £25 for 15 months. thats excluding the 1st month which will be £25 + any bt fee. hopefully some one will work out the figures for you and if its going to work out cheaper for you.