just a quick question?

honeybee1985

Hi, When getting a new 0% card with 0% balance transfers is paying of the remainder of my loan in one go classed as a balance transfer or cant i do this? Thanks Marc.

Moggles_2

No, this is not classed as a balance transfer.

What you can do is apply for a 0% BT card and transfer an overdraft to the card, in other words shift cash from the credit card to your bank account. A handling 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

Moggles_2

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

Moggles_2

To maximise the 0% period, 16 months is currently available to new customers from Virgin. A 4% handling fee applies, but there are no other charges during the introductory 0% period.

http://uk.virginmoney.com/credit-card-v3/

On receipt of your new card, you can request the transfer of funds to your current account. It's best to do this when you call to activate the card. (There's a dedicated, Freefone number).

Virgin will allow you to transfer up to 95% of your credit limit. The money arrives in your bank account in about 6 days.

Whether this is a good idea is another question of course.