Best credit card to pay off a loan?

goldiemad

Im new to this so please forgive all the questions.
I have a loan with mbna of £5000 there is around £2000 left to pay on this and I have been advised to get a 0% credit card to pay off the loan. Firstly what sort of credit card do I need?
Which card would be the best to transfer onto?

I have never had a credit card before so dont have a clue what is best to do or how it ll works. I have had a few loans but am about to go on maternity leave and would like to try and save myself a little money rather than paying a lot of interest.

Can anyone please help?
Many thanks
Amy

Moggles_2

A few rather special cards will allow you to transfer an overdraft to them, (in other words, transfer cash from the credit card to your current account), at balance transfer rates. You then have funds in your current account with which to pay off the loan. You need:

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

I suggest you avoid MBNA as you already have a loan with this lender.

To maximise the 0% period you'd get until 1 September 2010 from Egg. A 3% handling fee applies, but there are no other charges during the introductory 12 months or so.

http://new.egg.com/visitor/0,,3_84106--View_1763,00.html

Moggles_2

P.S. Whether this is a good idea is another question. If you will have savings to pay off your credit card balance before the 0% period expires, that's great.

Please bear in mind that the reason Egg can afford to lend you up to 95% of your credit limit at 0% for 12 months, is because, more often than not, customers do not clear the debt and end up paying crippling interest when the promotion period ends. If this were not the case, these 0% offers would have dried up long ago.

If 12 months isn't long enough to pay off your borrowings, it may be safer to stick with the fixed rate that you are currently paying.