Loan paid off with creidt card??

chiff

Not sure if this is a stupid question or not but here goes.

My credit card debts are nil but I have an outstanding loan. Can I take out a new credit card and transfer the debt from my loan to the credit card as a 0% balance transfer? Or is it pie in the sky?

Any help appreciated.

mrcow

I just did this with a Marbles card (as they were doing a £25 cashback through Quidco). I had to write a credit card cheque which counted as a 0% balance transfer (had to pay a capped £50 for this) for 9 months.

It all depends on:

1. The size of your loan
2. The size of your credit card balance that you can get
3. Check out the t&cs about the 0% functionality before you apply
4. Check out the repayment options on your loan (some loans are not worth paying back due to early repayment penalties etc.)

There are cards out there where you can do this (but most will charge a capped 2% fee as Marbles did with me). You can certainly save a lot of interest.

WPC

I was £3500 overdrawn and was being charge around £50 per month. I applied for a credit card with Virgin. I received my new credit card that had 9 month interest free on balance transfers and telephoned Virgin and asked for "A super balance transfer" to my bank account. There was a fee of 2% charged which I think is standard with most credit cards.

You must make sure that you pay the amount owed off within the 9 month period otherwise their interest charges are very high.

Hope this helps

WPC

nbbradshaw

chiff, the advice from mrcow is spot on. However you MUST be able to repay this within 9 months otherwise you'll end up either applying for futher 0% CC's (if available) or applying for a new loan!.

Good luck and plan wisely.

Luke

WPC wrote:

I was £3500 overdrawn and was being charge around £50 per month. I applied for a credit card with Virgin. I received my new credit card that had 9 month interest free on balance transfers and telephoned Virgin and asked for "A super balance transfer" to my bank account. There was a fee of 2% charged which I think is standard with most credit cards.

You must make sure that you pay the amount owed off within the 9 month period otherwise their interest charges are very high.

Hope this helps

WPC

Yes Virgin are wicked for this. Once your nine months finishes clear the balance and phone them again. I expect they will offer you somthing at the first time of asking, if they don't say you want to close the account and they will play nicely.