Loan or transfer amount to credit card?

womble374

Hi I winder if anyone can help me sort something. I have just applied for a loan, I needed £5000. I have been offered via my bank 16.7% (which I know is high, not good history), paying back over 37 months at 171.05pm. I can afford to do this. The paperwork has come and I was about to sign, so that the money is in my bank before the credit card payment is due.

So my questions are:

1. Do I go for the loan and clear the card? The total balance payable is £6328.
2. Do I transfer the balance to a different card. TSB are offering 0% for 9 months, with a 3% charge. The card more than covers this. How do I work out if the £171.05pm x 37 months is cheaper? I would probably be able to stretch to £240pm.

Any help or a pointer on where to calculate the Lloyds TSB total payable would be gratefully received.

Tixy

Hi

I'm not sure if its just me but I think you have missed out something from your post for us to be able to understand?

You say you need £5k. Do you mean you have £6328 on an existing credit card and you are thinking of transfering it to a bank loan? What is the APR on the existing card? Where does the £5k come in?

Do you also already have the TSB card? is that empty so they have offered you the 0% deal? What is it you are trying to achieve overall?

womble374

Sorry for the confusion. I need £5k for a purchase and have been offered a loan, which will cost £6328. I have temprarily paid the £5k on an MBNA card until the loan comes through inititially.

I have a TSB card which does have a balance of £4k which I am paying back at £150pm. Rather than taking the loan and using that to pay MBNA, I was wondering if transfering it to TSb at 0% with a 3% charge was a better option. I would then pay the current amount I am paying and the amount I would have paid on the loan. Just wondering which was better value.

Does this help?

womble374

Had a bit of an idea this morning. If I take the loan, and instantly wipe out the £4k on TSB, then transfer the amount which is on my MBNA card that I have just spent of $5k, use the remaining £1k to clear part of this, at least then for 9 months I am getting effectively the old credit card at 0%.

Does this sound like the right option?

Any suggestions gratefully received.