Transfer personal loans onto 0% credit cards

nrashid

Hi,

I am wondering if you can please advise whether you can transfer personal loans onto 0% credit cards. My partner has 2K with Natwest and 2K as a personal overdraft as a student. As she is no longer a student the bank have requested she pay the debt. I have read posts on transfering credit card debts onto other cards but not loans onto credit cards, is this possible? and which cards would you recommend. Please help!!!

jaxkesa

I would also like to know this. I notice my Egg Card has the option to balance transfer from a card, current account, or overdraft.

It doesn't mention fees but I'm wondering if I can transfer my 24.9% Egg Loan to my 21.9% Egg Card?

nrashid

So it is possible to transfer loan payments to credit cards, can anyone else suggest any other banks that offer this service? I can recollect my partner telling me that Natwest could not transfer exsisting loans to credit cards? I am not sure if this information provided was true.

YorkshireBoy

jaxkesa wrote: »

It doesn't mention fees but I'm wondering if I can transfer my 24.9% Egg Loan to my 21.9% Egg Card?

Yes, but not directly. You'll have to balance transfer from your overdraft (current account) and then settle the loan from there.

However, it may not be the best thing to do. For example, are there penalties for settling earlier? Also, at 2%, the minimum payments may be higher than you're currently paying on the loan, especially if the loan is in it's infancy.

Cards capable of paying/routing 0%* cash into current accounts are...

Egg Card (Visa)
MBNA, and MBNA run cards
Post Office
Egg Money (Mastercard), by 'muling' 0% BT cards
M&S, via the Sterling travellers cheque loophole
RBSG cards, via 'money transfer' and swift BT to another 0% BT card


* Often a 2-3% BT fee is payable.

jaxkesa

YorkshireBoy wrote: »

Yes, but not directly. You'll have to balance transfer from your overdraft (current account) and then settle the loan from there.

I thought you could do it directly, which is why it gives me the option to transfer from a card, loan or an overdraft? It just seems strange they would give me the option of a cheaper rate if I transferred it to a card. There isn't any penalty for settling an Egg Loan early, and the repaymnts would be less than the £100 a month I'm paying now on a £1700 balance.

I'll have to try and work this one out...

YorkshireBoy

jaxkesa wrote: »

I thought you could do it directly...

I'll have to try and work this one out...

Start by reading your T&C's...

9.3 You can ask us at any time:

• to pay off an amount you, or your Additional Cardholder, owes to another UK lender and transfer it to the Account, so long as the amount would not make you go over the Credit Limit, is £100 or more, and is not used to discharge your, or your Additional Cardholder's indebtedness to any part of the Egg group of companies;

http://new.egg.com/visitor/0,,3_11087--View_1068,00.html

If you do go this route, be mindful of the minimum payment trap because you could end up paying more interest.


EDIT: You might want to try lowering the APR on your card before making the BT.

jaxkesa

Ah, I thought it was a little strange I'll have to transfer to my bank account instead then. Don't think I'll be able to get a lower APR...it was 16.9% until I got an email the other week saying the terms had changed and it would be going up to 21.9%

YorkshireBoy

jaxkesa wrote: »

Don't think I'll be able to get a lower APR...it was 16.9% until I got an email the other week saying the terms had changed and it would be going up to 21.9%

And you're going to accept a 30% increase without challenge?

BTW, 'the' terms haven't changed...YOURS have. If the account has been run well, and your current balance is zero/small, give them a ring to see what they can do.