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loan-credit card-transfer.

i have a 5k loan which i pay £140 a month for. I'm looking to transfer this on to a O% credit card. if i pay the same amount each month i'll pay the debt off quicker. Unfortunately, i'm unable to find a credit card that'll accept balance transfers from a loan to a credit card:mad:. Does anyone have any advice? Many thanks.

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    the MBNA stable of cards will allow a BT to your current a/c from where you can pay the loan off.
    Do bear in mind that the 0% will only last a limited period (say 12months) after which you will start to pay the full rate (often over 20%)
  • execlent. thanks for taking the time.:beer:
  • fozmcfc
    fozmcfc Posts: 3,098 Forumite
    Part of the Furniture Combo Breaker PPI Party Pooper Debt-free and Proud!
    ........and you pay a 4% fee on top of the amount you transfer into your bank account.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    A few things to watch out for:

    1. There may be an early settlement fee on the loan.

    2. If you only pay the minimum on MBNA (1%) each month you'll owe considerably more in 12 months time than you would have done on the loan.

    3. If you breach the T&Cs your 'loan' could finish up on 25%+ APR (if you miss the opt out clause in the notification letter).

    4. 0% deals may not be around in 12 months time. If they are, they may have 5-6% fees attached and/or be of much shorter duration.

    What's the APR on the loan? Would a 5.9% APR (plus 1.5% fee) LOB card be a better option for peace of mind?
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