can i please?

saree

not done this before so bare with me!!.
we have a new car loan of £8,300. and a credit card with about £800.what id like to know is can we get a new 0% credit card and transfer all of it.( natwest said they would only do transfers from credit card to credit card).any one got any ideas?

**Upsy_Daisy**

credit card cheques?

but why?

Once the 0% period ends you will be paying much higher interest

cifpower

With some cards (Virgin, MBNA, Post Office) you can transfer cash from the credit card to your bank account and take advantage of the 0% period for a fee. You could then use this cash to pay off the loan. You will have to take into account any early redemption fees too.

saree

but i could transfere to another 0% card couldnt i?

cifpower

Yes you could

saree

i have heard of doing it this way, if i pay off the loan now i save on the interest (£2,300) and there is no fee.will the bank charge for doing this?

cifpower

You will have to check your loan agreement to see if there are any early redemption fees.

LeeSouthEast

It is also possible the loan is 'front-loaded', i.e. the interest is added on at the start of the loan period. You'd need to check that paying it off early will not actually result in you paying more (in early redemption fees) than just letting it run its course as is.

Martinslovechild

Hiya siree,

If you can afford to repay the loan in 16 months (£519 per month) then go for a Credit Card which offers 0% for the longest amount of time. You will incur a BT fee. Most BT fees are around 3%, but cards from the MBNA stable are slowly increasing to 5%.

The Virgin Credit Card currently offers 16 months at 0% (this is administered by MBNA).

If you can't afford £519 per month, then you'll need to take your chances at the end of the 0% period that other 0% cards are available at that time such that you can move the remaining debt onwards to another 0% card (which you'll need to apply for approximately a month in advance of the first card's 0% deal expiring).

To initially move the debt onto a credit card, consider cards which offer a 'Money Transfer' facility (i.e. cheque or BACS payment directly into your current account from where you write a cheque to the loan company).

Once you've moved the debt onto the credit card, do NOT use it for purchases as these are usually charged at the full interest rate (i.e. not 0%).