Loan balance to a credit card at 0%

debuttt2000

How do I transfer a balance left on an existing bank loan to a 0% credit card. Can it be done what are the mechanics of such a move? any help would be appreciated for the cheapest way forward.

Reaper

In principle yes it can be done. However...

1) You need a credit card which allows you to do balance transfers to places other than other credit cards. I suggest Egg is a good place to start. It is 0% until 1st September and allows you to balance transfer to your bank account from where you can use it to pay off your loan.

2) Check for early surrender penalties on the loan. Many loans will penalise you heavily for paying them off early. This is when you discover nasty little terms like the "Rule of 78". But you might be lucky and have a flexible loan.

3) Bear in mind credit card give short term lending at 0%. Hopefully when the credit card's 0% period is about to end you will be able to take out another one, transfer the debt and keep paying 0%. Certainly try, but don't depend on it.

Having said all that it is an excellent idea. I'd encourage you to go on paying the same amounts you were paying to your loan to the credit card instead. As you are paying no interest you can pay off the debt much quicker.