What type of credit card?

mike32_2

Hi all,

I am looking into getting a credit card to pay off a sainsburys loan which i have, and just want some advice on what the best type of card would be for me. I dont want to use it for anything else, just to pay off my loan.

Any ideas?

Cheers.

CLAPTON

some details would be useful

how much is the loan
how much the monthly payments
APR?

how much can you afford to pay off each month
what's your credit record like
how much is your salary

mike32_2

CLAPTON wrote: »

some details would be useful

how much is the loan
how much the monthly payments
APR?

how much can you afford to pay off each month
what's your credit record like
how much is your salary

Loan is £4000
monthly payment is £188
apr 7.9%

can pay off £190 per month
credit score is perfect
i'm self employed so anything between 15,000 - 30,000 per year

jonesMUFCforever

That APR is very good in current markets - why would you want to transfer it to a credit card?
I know what you will say pay less interest blah blah blah - but your actual saving after paying a cash advance fee will be minimal especially if you don't get a high enough limit to transfer all of the loan over.
Have you not considered over paying the existing loan (if allowed)?

jd87

You can to get a 0% balance transfer card that allows you to transfer money to current accounts. You pay the money from the card into your bank account, then use the money to pay off the loan. MBNA ones (such as Virgin) let you do this and I think it is 0% for about 15 months.

The problem is there is a 4% handling fee for it so you really aren't going to be saving a huge amount.

It's only worth doing if you are currently struggling to pay your monthly loan payments. The credit card minimum payment will be £25 per month which is handy, but when the 0% period runs out you better hope you can get another 0% card to transfer the balance or you will end up paying between 19-30ish% on what's left. So it's a bit of a gamble.