How Much & Worth it???

jofullalove

Hi all, i have a loan with Tesco at the moment but am looking to get a 0% Credit Card to do a "super balance transfer" to pay off my loan, then be a credit card tart. Is this recommended?
Also my loan currently stands at about £8000, would they even offer a credit card with that much on it?
(I have a very good credit rating)

Thanks

CannyJock

You'd need to get a settlement figure from Tesco to do the calculations to any degree of accuracy.

To get a SBT of £ 8000, you'd need a credit limit of around £ 8500. Virgin Money would be your best bet to get started, 4% fee on the transfer. Your minimum repayments will be 1% of the balance during the 16 month promotional period. Full list of cards that allow a SBT on the stoozing site.

You can work out how much you can repay, obviously the more the better so you've got less to try and move elsewhere in 16 months time.

Before you embark on this, you need to get copies of your credit reports and make sure there's nothing there you don't know about.

In theory it'll work - I've helped friends and family do this for a few years now - but you're not guaranteed to be offered the credit limits you want so it's not a sure thing.

td_007

jofullalove wrote: »

Also my loan currently stands at about £8000, would they even offer a credit card with that much on it?
(I have a very good credit rating)

While Virgin are reasonably generous with their credit limit, in my experience they have also matched the highest limit I held with a credit card.
So not sure if it is a criteria as well, but others can comment if the Virgin limit was at or near the highest credit limit that they had. I have had a good clean credit record always.

jofullalove

thanks for the advice, Just obviously worried that i wouldn't get offered enough as £8500 is very steep. Also i have 4 years left of the loan now, if i do it the credit card way i'll probably have the debt for a lot longer. I need to give it further thought.

b3nton

I would probably not use a credit card.
Good luck!

stephane_2

What you need to bear in mind is that all is good while the 0% is in place but you need to take into account that after that you interest rate might jump to 12,14 even over 16%!!!