convert credit card to loan

stashmycash

Has anyone ever asked to have a credit card amount converted to a loan or would I have to apply for a loan in the normal way ? I thought as I already owe them the money they might agree to this option.

davek1

worth a try some banks will do it but not sure about other credit card companies. in any event has to be a damn sight cheaper in interest than a credit card

Conor_3

It's only really worth doing if you plan to cancel the credit card otherwise you'll just rack up a balance on the CC again and be even worse off.

$17mma

davek1 wrote:

worth a try some banks will do it but not sure about other credit card companies. in any event has to be a damn sight cheaper in interest than a credit card

In some circumstances yes but not when and if you can change to a 0% cc for 12- 18 months.. now I doubt that there are any loans cheaper than that!.. and if after the 12-18 months 0% that some cc are offering expires just change it to another one!... then if you cant change to another switch to a cheaper loan...

But not taking advantage of 0% cards for 12-18 months especially if you are able to would not be good money saving...

AND with loans you have to consider the "rule of 78" or whatever it is and the interest they will charge you IF you pay it off early which could be whatever they decided.. normal two months of the loan...

winkle1

its better to do a balance transfer to a 0% credit card!!

tango

hi, first choice as others have said would be a balance transfer to a 0% card,and up your repayments during this period to try and clear it.
trouble with a loan, you may think it saves you interest,but that depends on the repayment period. also once it is a loan,you tend to forget what that debt was,and then just spend on the credit card again

jesster_2

it's going to be cheaper to transfer to a 0% credit card PROVIDED that you're disciplined enough never to spend any more on it and you make loan-repayment sized payments off it rather than just the minimum.

I wanted to transfer one of my credit cards onto a loan because I knew that would force me to pay it off. Having said that, the bank would only give me the loan if I used it to pay off the overdraft I had with them, as the credit card was with someone else. I did do that, and now i'm overdraft free, and i'm sure i'm paying the loan off more quickly than i would have paid off either the overdraft or the CC, because i'm forced to. In my case, i think the interest is worth it for the discipline.

roswell

transfer to 0% card, cancel existing card set up DD to pay 0% card .. cut up 0% card.

Thats the best way

jesster_2

roswell's right... just make sure you set up a decent sized Direct Debit - maybe find out what your loan repayments would have been and match them.

frugglewump

If you have already looked into 0% cards and can't get one then yes some places will do this. I know that Egg offered it to me when I had a high balance on their card. Possibly the mostly likely place to offer this would be your current account provider, but they are unlikely to offer the best apr.