Loan or cashback on credit card then switch?

duggie1982

Well 2 balance transfer fee's E.G. Current card say 4% (£40) then the 0% transfer about 3-4% (£30-£40) So in total About £80. Just make sure you dont miss any payments and make sure you secure the 0% card before you do anything.

macawac

Thanks Duggie,

Must be a bit daft here - Why do we pay twice??

Regards, Karen.

td_007

macawac wrote: »

Thank you for all the replies,

If I am not misunderstanding anything, a personal loan will cost us between £200 and £300 for the year in interest (assumng £1,000 borrowed over 12 months) and if we secure a balance transfer for at least 12 months, it will cost us only 3 - 4%, ie. £30 to £40 pounds for the year, assuming that we balance transfer before the interest is due on the cash advance, or alternatively as suggested we obtain a balance transfer deal that includes paying the thousand pounds into our bank account.

Am I missing out on any small print??

Regards,
Karen

Exactly as you say. Even if you have a a Virgin card, you can apply for a MBNA card - presently 13 months 0% BT with 4% on money transfer (2.9% on transfer to CC). That is £40 on 1K you need. Would suggest to see if you can secure this card first before trying to get cash off your credit card.

Ritchie74

macawac wrote: »

assuming that we balance transfer before the interest is due on the cash advance...

Hi Karen,

re your comment above, I would just like to add - be quick with your BT request after withdrawing cash. Cash does not have the 'up to 56 days interest free' perk that purchases carry. Your balance will acrue interest from the day of withdrawal up until the whole balance is paid off. Bts are not instant so I'm affraid you won't get away with no interest, but if you act quick you can minimise the interest charged.

Re two fees, I think duggie may have been refering to the Cash Advance Fee (usually around 3%)- the charge the card issuer imposes for taking cash.