Can 0% cards pay off lons?

Vin2300

My girlfriend has a loan from Lloyds TSB. There are 30 monthly payments remaining at £62 which makes £1,860. She was told today about £1,500 would pay it off in one go.

So can she pay it off with a 0% credit card?

I ask because everything on the guides on this site just refers to transferring the balance from another credit card. I have told her that she should be able to pay off any balance if she gets a card, but she thinks she couldnt use it to pay off a loan.

Which is correct?

Andy_Ches

Vin2300 wrote: »

My girlfriend has a loan from Lloyds TSB. There are 30 monthly payments remaining at £62 which makes £1,860. She was told today about £1,500 would pay it off in one go.

So can she pay it off with a 0% credit card?

I ask because everything on the guides on this site just refers to transferring the balance from another credit card. I have told her that she should be able to pay off any balance if she gets a card, but she thinks she couldnt use it to pay off a loan.

Which is correct?

Some cards...don't know which do these days.....will let you transfer money to your current account and you could pay the loan off that way.

Not sure what cards are available these days to do that...anyone?;)

kilasuit

cards like the virgin do and the others issued by the MBNA group

Loosechange09

I have a Virgin CC which allows me to transfer money to my current account at 0% until June next year.
There is a 4% handling fee though.

Vin2300

kilasuit wrote: »

cards like the virgin do

She was rejected by Virgin a couple of years back. However she now earns more, and has another couple of years never missing a payment on anything.

What about Abbey? She has an account with them, and i heard that you are less likely to get rejected by a bank you have an existing account with.

Andy_Ches

Vin2300 wrote: »

She was rejected by Virgin a couple of years back. However she now earns more, and has another couple of years never missing a payment on anything.

What about Abbey? She has an account with them, and i heard that you are less likely to get rejected by a bank you have an existing account with.

I think it's under written by MBNA same as Virgin.

kilasuit

not to sure about the abbey card think the othe was the halifax one card thou i may be ever so slightly wrong there.

jd87

She could probably get the virgin or abbey one if her credit file is now good and she has a good income. The 4% fee will only work out to be £60 so it sounds like a good plan. Go for it.

Vin2300

I have had a good look through the card details on the websites for Abbey, Virgin and Post Office. None of them mention anywhere the ability to balance transfer money into a current account at 0%. They all just keep mentioning credit cards and store cards.

I guess it is just a case of calling them and making sure before applying, and checking what the fee is.

Vin2300

Andy_Ches wrote: »

I think it's under written by MBNA same as Virgin.

apparently not any more now that they are part of Santander

Moggles_2

My girlfriend has a loan from Lloyds TSB ... Can she pay it off with a 0% credit card?

Not directly. 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 her bank account. You then have funds in her 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.

Which option is best depends, to some extent, on which cards she has at the mo or has held recently. To maximise the 0% period, 16 months is currently available to new customers from Virgin. There's a 4% handling fee, but there are no other charges during the introductory 0% period