0% credit card to pay off loan?

zacspeed_2

I currently have an Egg loan with a settlement figure of approx £1500. The loan will be fully paid back in Dec 2012 (2.5 years). I am paying a gnats under £50 a month in re-payments.
In an atempt to lessen either the time period and/or the amount I am paying back, I have been looking @ getting a 0% intrest credit card (probably this virgin one with zero % for 12 months), then switching to whatever similar deals are available a year later.
My question is: What will my weekly re-payments be if I choose this method? I'm sure there's a simple formula to work it out, but I'm not too clued up when it comes to all this money stuff :embarasse. What other pitfalls do I need to be aware of?
Be gentle with me & mods, please feel free to move this to a more appropriate place if need be.

GeorgeUK

According to the card, the minimum monthly payments are the greater of 1% or £25, so your minimum would be £25.

After a year, you would still owe approx £1k though and what happens if you don't get another 0% offer?

I keep my old cards open as you can sometimes get offers as an existing customer - 0% for 6 months or low interest for life of balance.

zacspeed_2

Thanks George.
I know it's a tough question, but what are the chances of these deals still being available in a years time?

GeorgeUK

According to my crystal ball...

The 0% deals remained throughout the credit crunch, but it was a little harder to get accepted. I guess it depends on how clean your credit score is and how your income compares to the credit you already have. I think if you have less than 70% of your income you should be okay, but again this may depend on your actual income.

For the deals to existing customers, this usually doesn't require a credit check and if you don't get anything through the post, you can still call them to see if they have any offers available. They will be wanting to keep existing customers if they are good payers so these deals will probably remain.

ithomso1

Hi Zacspeed,

I would personally suggest going for an A&L bank account, and getting their Santander Credit card, which currently offers a 0% fee for transfering,

Just to put you in the picture if its comparable to myself, Excellent Credit Rasing,
Income - £20,500 (Before Tax)

And i was given a limit of £2800 on the card, which is more than enough to cover your loan.

HOpe that helps.

Many Thanks

zacspeed_2

Thanks guys.
Does the Santander card cover purchases though? As i belive it's not classed as a transfer because it's a loan. :think: