Transfering loans to a credit card

David616

I have a loan and a credit card totallin £5000. Can I transfer the loan to a 0% credit card? Should I transfer both to a 0% credit card and pay off before the 0% runs out?

Moggles_2

Can I transfer the loan to a 0% credit card?

Not directly. What you can do is apply for a 0% balance transfer card and transfer an overdraft to the card, in other words shift cash from the credit card to your bank account. A BT fee applies, but there are no other charges during the introductory 0% period. You then have funds in your current account with which to pay off the loan.

Caution: you cannot use any old 0% BT card. A handful will do this at BT rates.

You need:

a card issued by MBNA (e.g. Alliance & Leicester, MBNA itself, Sony, Virgin), Egg card or the Post Office card

naijapower

Halifax normally sends its customers 0% promotional chq to use for balance transfer which can be paid to anyone.
Very useful in my opinion.
'Who gives you extra'

Moggles_2

naijapower wrote: »

Halifax normally sends its customers 0% promotional cheques to use for balance transfers, which can be paid to anyone. Very useful in my opinion.

If you've "normally" received 0% credit card cheques, you've been lucky. These cannot be ordered and you never know when they will drop through the letter-box. Halifax credit card cheques can be charged at various rates for differing periods of time, so it pays to read the small print

David616

The credit card I have is Virgin so I would need another card. From what I understand I cannot fill in a form and transfer the loan direct but I can transfer the credit card debt. Could I do this on a Tesco card, currently got 15 months 0%? Would it be worth considering increasing my loan, been offered an APR of 9.6%?

Moggles_2

david616 wrote: »

Can I transfer the loan to a 0% credit card?

P.S.You'll need to check the loan Ts & Cs. Some providers charge an early repayment penalty if the loan is settled in full before the scheduled date.

There is an element of risk. If X months at 0% isn't long enough to clear the loan, you may be safer to stick with the fixed-rate that you are currently paying

JMW77

I am in the same position ,pay a CC cheque into your current account and then use your own cheque to settle the loan.

Moggles_2

david616 wrote: »

The credit card I have is Virgin, so I would need another card.

That rules out 0% BT cards issued by MBNA for the time being then, until your balance on the Virgin card is paid off.

That leaves Egg card and the Post Office card (please see #2 above).

JMW77

What should i do i have at least £10000 of savings coming from AXA cashbulder which i have cashed in!

I have a loan for approx 10,000 should i continue for another 3+ years at 7.4%

or

Pay of the loan and have no debts
or
CC cheque at 0% up to credit limit and the rest cash (out of the £10,000 )
as i have no other debts clear within 6 or 8 months.

what do you think?

Moggles_2

david616 wrote: »

The credit card I have is Virgin, so I would need another card. From what I understand ... I can transfer the credit card debt. Could I do this on a Tesco card, currently got 15 months 0%?

Absolutely. You can transfer a credit card balance to another credit card

Moggles_2

JMW77 wrote: »

What should I do? I have at least £10000 of savings coming from AXA cashbuilder, which I have cashed in! I have a loan for approx £10,000. Should I continue for another 3+ years at 7.4% or pay off the loan and have no debts?

I'd use my savings to pay off the loan, as 7.4% APR would wipe out any interest gained by putting £10,000 in a savings account, but it's your choice really.