Balance transfer from a loan or not!

husemin

Hi all

I have a £16,000 loan and the settlement figure for this is £11,600, I think the rate is 19.9%. 4.8 years to go......

Can I do a balance transfer to a 0%card from a loan? Should I?

and

Can you Balance transfer any amount, or do they tell you how much you can transfer?

Thanks for any help at all, and keep up the good work, excellent site.

H

milliemonster

You can normally BT up to 90-95% of the credit limit on a CC, but you say you think the loan APR is 19.9%, you'd be best checking this out for definite first. Also, are you planning to pay off the balance during the interested free period? if not it is highly likely you would see the rate shoot up to higher than 19.9% on that kind of balance following the end of the 0% period

Having said all that, I am not sure you would be able to BT a loan anyway, you would have to own a CC that allowed a superbalance transfer into your current account so you could pay off that way, oh and don't forget there would still probably be a 3% (or thereabouts) fee for the privelege which would add on another £348

husemin

Hi, No I wont be able to clear the debt in that time, I was hopeing to balance transfer again to another card at the end of the probotion, tarting I think its known as.
If you feel the rate would shoot higher than 19.9% on the card then thats not good, just in case I cant tart.....
So maybe I should wait till I can complete the loan in same period as BT card offer (eg. 0% for 15 months!)

milliemonster

It depends on how much you could get paid off during the interest free period, if you are still going to end up with a hefty balance on there (ie above £5k) then you will highly likely end up on a rate above 20%, also, there aren't many cards out there that would give such high balances as credit limits (of the £10k mark) as an initial credit limit anyway I would think?

husemin

Ok, thanks for your help, I'll carry on as I am till nearer the end of the loan.

H

Rob71

husemin wrote: »

Ok, thanks for your help, I'll carry on as I am till nearer the end of the loan.

H

Don't be put off so easily! :D

• Apply for something from MBNA - e.g. Virgin or MBNA platinum.
• See what limit you get - they tend be quite high.
• Money transfer what you can into a current account and then pay that off the loan.
• Tart the balance on the card until it's paid off.

Why stop there? Why just one card? Apply for several until you've got the entire loan on 0% cards...

Whatever you can move onto cards will save you interest: 0% or 19%? That's a tough call... :rolleyes: Shame on anyone for putting you off the idea!